With the Coronavirus crisis and more people than ever spending a lot of time at home and on the networks, the use of Facebook and Instagram has increased so much that there have such spikes in connections that they even have caused problems some technical problems to Facebook apps.
In any other context than that of the crisis, more users would have meant more conversions and the gradual increase in the price of ads, which has been the case in recent years. What happens, on the contrary, is that there are more users, but they are converting less.
Businesses, in general, are spending less on advertising and this has caused ad costs to follow a downtrend. The Cost per Mille on Facebook and Instagram has dropped between 15-25% in the last month.
The big question: how to take advantage of this situation now that ads cost less and less?
In a previous article, we mentioned that for the companies that could afford it, an effort had to be made not to stop advertising 100% since the recovery from the crisis is going to be gradual and wait for the ideal moment to return from the ashes can be very expensive.
Let's look at Branding campaigns. Like TV commercials, they don’t intend to convert customers immediately after viewing the ad, but rather seek to position themselves in our minds to influence our purchasing decision later.
The objective of Branding campaigns is something that does not change during the crisis. In other words, branding campaigns are the least affected by the drop in conversions. Its objective is, as always, that we remember the product or service that is offered to us. Now, for the same cost as before, you can reach more people than before. Similarly, you can reach the same number of people you used to reach more cheaply than you did in the past.
What to do then? Follow the trend of the majority and save cash or swim against the current and take advantage of the situation to the best of your ability? It depends on each case and it is something that every business owner must value very seriously before full close shop.
What is clear is that if your niche is one of those that have been strengthened despite the crisis due to the type of product or service you offer (home fitness, info products, etc.), while the cost of ads follows the downward trend, Investing in advertising can become even more profitable than before the crisis.
Learn the exact Bid Strategies, Audiences & Ads that Patrick has applied to over 120+ Brands to generate over €10,000,000 with their Facebook & Instagram Ads.