How can I control advertising expenditure on Facebook?

Bakhtier May 14, 2011
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Hi again,

maybe for some of you I have weird question. I’m planning to set up Facebook advertising campaign for my business (I have a small restaurant). I want to use pay per click. But I am afraid that my competitor (other restaurant) will take advantage of that. I mean he may start clicking my links so I lose money. Is there any guidelines or rules in Facebook? I couldn’t find that information on Facebook. Any help or advice will be appreciated.

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  1. Anshul Dixit
    May 16, 2011 at 7:20 pm

    As Angela said above, you should not worry about your competitors clicking on your ads, since that will be wastage of their time. They can't keep refreshing their profile all day long to see your ads. After all, the ads that we see on our profile keeps changing. 

    Also, with years of advertising experience behind them, Facebook must already have thought about these obvious concerns. Though only their experts can know how the complex algorithm works, it is reasonable to believe that it is intelligent enough to differentiate the raw clicks from the authentic clicks. I think they must have set up a limit on the number of clicks  generating from one ip that it counts and would not be counting extra clicks.

    As for Taegan Lorin Channing's  point, I would say that I have used Facebook ads and have been satisfied with the experience so far. If you know how to use it properly, you'll surely benefit from it. Some of the tips that I can give you from my experience are:

    1) Create multiple ads and use them to target different audience set for a few days. For eg, if you want to target users between the age of 18-55, instead of creating one ad targeting users between age 18-55, create multiple ads- one targeting users between 18-30, other between 30-40, and last one targeting users between 40-55. Then observe for a couple of days which of the ads are working better. Once you have identified the audience interested in your product, pause the remaining ads. You'll see an increase in your CTR.

    Running multiple ads won't affect your overall spend, since you'll already have defined a campaign budget.

    2) Use attractive images, and interesting text.

    3) Keep the max. bid on a higher side. The max bid doesn't mean that you'll end up spending that much on every click. It only tells how much you are willing to spend. If you bid more, then chances of your ad winning the auction will increase. Though I used to bid on a higher side, my CPC was way below my bid.

    4) Keep changing the text and image every few days so that the users don't get bored seeing your ads. Otherwise they might stop clicking on the ads, or even worse, cross out your ad. (There is a cross next to every ad that a user can click to report a bad ad).

    All these tips will directly or indirectly impact your ad spend too. If your ad gets high CTR, the CPC will automatically get lower. Simple mathematics !!

  2. Saikat Basu
    May 16, 2011 at 7:50 am

    Haven't read through the Facebook Guide, but didn't it help? You might find some of the articles mentioned here - http://www.jonrognerud.com/category/facebook/ of some help.

  3. Steve Campbell
    May 16, 2011 at 2:46 am

     Facebook Ads are bringing in millions of dollars for Facebook, so there are definitely people out there that click on them. The beauty of Facebook Ads is that you can really drill down and target specific users, making your ads only visible to your core demographic. I really don't think you would have to worry about your competitors clicking on them to drive up the price since you can target specific people (i.e. Male, 20-30, Interests include Food, Likes restaurants, etc.). There are also services (like Adaptly) out there that specialize in helping you reach your key demo and keep the cost of running ads at a minimum. 

    • Angela Alcorn
      May 16, 2011 at 5:01 am

       The competitor is presumably local and fits the demographic, though.

  4. Angela Alcorn
    May 15, 2011 at 2:25 pm

    This is a good question, but I think it's it's one answer you'll have to get from Facebook customer service to be absolutely certain.

    I know you can limit your daily expenditure for adverts:
    https://www.facebook.com/help/?faq=14744

    Plus, you can limit your advert billing to a cost per click to avoid being charged for users with adblock, etc:
    https://www.facebook.com/help/?faq=14739

    However, I don't know if each Facebook user is limited in how many times they will see your advert or can click on it before it's investigated. One can presume that Facebook rotates the adverts between you and other advertisers to this market segment, so your competition isn't likely to see your advert all the time.

    Perhaps in the interim you can set your daily budget quite low so that only a small handful of people will see it per day. Even if your competition is clicking on the adverts they'll not be able to do much damage - other people will probably have a chance to see the advert before they do.

    Also, don't just focus on Facebook advertising. Make sure you use places and pages to generate interest and to promote competitions and deals. Plenty of good tips here:
    http://www.makeuseof.com/tag/download-facebook-marketing-guide/

    On another note, your competition would be better off bettering their own business rather than trying to cut you down. And you'll probably be better off not worrying about them and just focusing on doing your best. These things just turn into a headache for all concerned. :) Good luck!

  5. Taegan Lorin Channing
    May 15, 2011 at 9:48 am

    don't bother advertisng with facebook. its a waste of money, no one clicks on those things or use adblocker

    • Bakhtier
      May 15, 2011 at 10:57 am

       if no one clicks, so i don't lose money? because i want to use pay per click service. That mean my impressions will be high :) 

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