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Why do your Facebook Ads Fail to Generate Revenue?

Why do your Facebook Ads Fail to Generate Revenue?

Admin 10-06-2021

Online paid advertisements are useful marketing channels for small and medium-sized businesses. They allow you to promote your business, product, or service to a much larger audience at an affordable price. There are two most popular paid advertising channels, Google Ads and Facebook Ads.

In our previous blog post, we have discussed some common mistakes made while running a Google ad campaign. Check it out to create successfully converting Pay-per-click (PPC) advertising campaigns.

However, Facebook Ads are a little different from Google Ads. Where Google Ads target keywords, Facebook Ads target people and have slightly different metrics on how your ad is scored.

In today’s blog, we will discuss Facebook Ads and why they may fail to generate revenue for your business. Before we get started, be sure to follow us on to stay updated on the content we post regularly.

With that aside, let’s get started…

Target your audience well

Audience targeting is one of the most important aspects of every Facebook Ad campaign. Better targeting helps your ad to reach accurate audiences. If your audience targeting is poor, your ad may end up displaying to people who are curious about you but are not too interested in what you offer. So, they may click on your ad but return just as fast. This will increase your bounce rate and costs for every click.

To target the right audience, you need to know them enough to create a buyer persona.

Here are some of the basics that you should know about your audience.

         1. Age

         2. Gender

         3. Location

         4. Languages

         5.Interests and hobbies

On these bases, you can create your ideal buyer persona. Facebook allows advanced targeting with lookalike audiences that allow you to target other users with similar attributes to your ideal buyers. You can also choose the users who have visited your website or any particular webpage to segregate the interested audience from the rest of them.

That way you will be able to target only those users who have shown genuine interest in what you are offering. If you have already collected leads from different sources, you can use that data to target that audience with your sales offers. In Pixels, click on “Create Audience” and then select “Customer Files”. Here you can directly import a CSV file of your lead database or import it from MailChimp.

You can create a lookalike audience based on the audience you already have. Facebook will display your advert to everyone that fits your targeting. Hence, your ad will be displayed to a larger number of people with a lesser cost per click (CPC).

Manage your Relevance Diagnostics

Similar to the quality score in Google Ads, the relevance score in Facebook Ads decides how much you have to pay for your ads on Facebook. The higher the relevance score, the lower will be your cost per click. However, because the relevance score did not offer any insights on where to improve your advertisements, Facebook replaced it with relevance diagnostics.

Unlike Google Ads, Facebook focuses not on the relevance of your content to the keyword but the relevance of your content to the quality of your advert, its engagements, and possible conversion rate. It rates your ad on these three metrics and instead of showing you a definitive numerical score, it tells you if your ad is below average, average, or above average in these parameters.

It shows these results in relation with the other ads floating around Facebook and how your advert score higher, similar, or lower than them.

Here’s how you can improve your ad relevance diagnostics:

Quality Ranking

The quality ranking shows the quality of your advertisement. In this case, you can improve the creatives you have used in the ad. Tweak your ad copy a little bit to make it more attractive. Use aesthetically pleasing images, or videos that engage.

Furthermore, you can improve your targeting as well. Poor targeting may lead to the audience not showing interest in your advert. And that may lead to a lower quality score as well.

Engagement Rate Ranking

Engagement rate decides how engaging your advertisement is and if it attracts the audience you are targeting or not. Many times, your advertisement’s quality ranking and engagement ranking go hand-in-hand. This is because your quality ranking may dwindle if you have targeted your audience poorly and so could your engagement rate ranking might decrease too.

So make sure that along with writing an engaging copy with a relevant image or a video, you also target the right audience who will be interested in your product or business and respond to your ad.

Conversion Rate Ranking

If your conversion rate ranking is below average then you may have to reconsider your landing page content. Improve user experience for beyond the click content. You have to be sure that the headline of your advertisement matches the heading of your landing page.

Here, it is also important that you give the consumers what you promised them when they first clicked on your advertisement. Otherwise, they will return away and may never come back to your page. It will increase your bounce rate which may affect your ranking.

Be mindful of your bid options

For Facebook advertising beginners, Facebook often helps in placing the bid with a bid amount that may give more clicks at an optimized price. However, if you feel like that is still not working out, you can change it to manual in the budget and settings option.

Here you can increase the bid amount to get better visibility and more clicks. However, you need to be sure about your budget and the life-time value of the customer. Accordingly, you can increase the bid amount.

Similarly, there are other options that you can change to make sure that you get the most out of your marketing campaign. The “When you are charged option” allows you to choose whether you would pay per impression or click. If you are paying per click and yet are not getting enough clicks, try changing the option to impression.

Do A/B testing of your Ads

One single ad for all is never an option for marketing your brand. You must make multiple variations of your ad to check which one of those brings more audience. Usually making 3 to 4 variations give you a good enough understanding of what your audience is drawn to.

Make sure that you create different ads for one concept instead of changing a thing here or there. This will allow you to know which kind of ads does your targeted audience prefers.

If you see an ad that you like, even from any other niche, you can check if the idea would work in your niche as well.

Focus on creatives

A lot of times, even when your targeting is to the point, it may not give you the results that you were expecting from your Facebook ad campaign. This could be due to the creative of your advertisement.

Good targeting with poor ad copy, image, or video will be of no use as people may not actually click on it or bounce right back from it. Hence, ensure the quality of your advert creatives.

Create catchy content and ad copy to support an attractive image or an engaging video. Understand what might be better for your advert, using an image or a video. If the concept of your product or service is a little complex, then a video might be better than an image or vice versa.

This way you can make sure that your audience stays engaged with your ad long enough to click on it and convert.


These are some of the things you can do to make sure that you get higher returns on your hard-earned money. We discussed audience targeting on Facebook, getting a higher relevance diagnostics ranking, bidding smartly, testing them by creating ad variations, and building an engaging ad with excellent creatives.

However, if you are starting new, it is wiser to outsource digital marketing experts to get your Facebook ad campaigns right. This way you can make sure to get higher ROI on your digital advertising campaign.

With initial free credits, you can try their service and then continue working with them if you liked their work.

Facebook offers a vast stage to advertise your products with advanced targeting to make sure that your ad reaches the customers who need your product or service the most. However, to reap the benefits, you need to pay attention to the details.

What are your thoughts on the topic? Let us know in the comments section below and be sure to check out our other blogs on similar topics.

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