Many social media platforms and other websites offer advertising services to almost all businesses. But how can one determine which platform is best for a specific industry? And more importantly, which industries should advertise on Facebook? Before looking for the answer, let’s review some of our latest advertising statistics from 2021 (divided by industries) so we could also expect some of the trends to continue and grow in 2022.
Why Facebook for advertisement?
- Facebook has 2.9 Billion users worldwide, meaning almost a quarter of the world’s population is on this platform.
- In addition to Instagram’s 1.38 Billion users, together they provide “Access” to 4.28 Billion users worldwide (More the half of the world’s populations)
- The most frequent and adamant Facebook users belong to the baby boomer generation, most of them from Asia and Middle Eastern regions.
- Facebook charges an amount of $0.97 for a click, which is cost effective when compared to LinkedIn’s average cost per click of $5.26 – 8.50 (And even more, depends on the industry)
- 78% of American consumers discover products on Facebook.
- People spend around 35 minutes per day on Facebook.
- Facebook ads allow you to target users based on general interests, liked pages, important dates like birthdays, demographics, location, buying history, education level, industry, and job title.
Considering the power of Facebook to reach a wide variety of audiences and the demographics of these audiences, several industries that are best suited for Facebook advertising come to mind. Some of them are as follows:
- Retail Industry — B2C
- Retail Industry — E-commerce businesses
- Real Estate Industry
- Consultant Agencies
- Investment companies
- Fitness and Healthcare Industry
Retail Industry — B2C Companies
For B2C companies, Facebook marketing has proven to be the greatest asset for the following reasons:
- Lowest CPC of $0.70
- Second highest CTR of 1.59%
- Full-on marketing and advertising campaigns with minimal cost.
- Spectacular engagement with the consumers to build emotional connections as well as brand loyalty.
- Instant spotlight and boost for small business according to the customized choices of advertisement.
- Customization — Facebook can either mass market your business or market it to a specific audience according to your specifications.
Note for advertisers: cost-cutting in the early days of business is significant but maintaining the quality of work is equally important, especially when your business is new and finances are limited.
Retail Industry — E-commerce businesses
Again, the retail industry has the lowest CPC of $0.70 and the second highest CTR of 1.59%. Such metrics make e-commerce best suited for Facebook ads.
During 2020 the world went down a complete shutdown, and life became online. Many businesses started their online activities and the businesses already working on online models benefited from this scenario.
E-commerce stores benefit enormously from using a low-cost advertising platform like Facebook, as E-commerce stores do not naturally generate a massive customer influx. Here, we look at some e-commerce businesses that can be successfully marketed on Facebook:
- E-grocery stores for ordering groceries online and getting them delivered to your house.
- E-Pharmacy stores for ordering medicines online and geting them delivered to your house.
- Buying and selling platforms like Alibaba, Amazon, Shopify, eBay, etc.
- Digital product stores selling templates, courses, e-books, software, or media.
- Home Office Equipment
- ModCloth – Women’s vintage-style fashion
- Greats – Brooklyn sneakers
- Birchbox – UK’s #1 beauty box
- Everlane – feel-good fashion at an affordable cost
- Warby Parker – eyeglasses store
Tips for retailers:
- Create a unique, frictionless customer experience for your target audience.
- Provide products and services that are super relevant to a narrow audience.
- Be transparent and showcase your manufacturing process to gain the trust and loyalty of your consumers.
- Use Dynamic Product Ad templates to display single or multi-product ads to customers who have visited your site based on products they viewed or added to the cart.
- Try Multi-Product Ads as well. They allow your customers to pick from a number of options.
Real Estate Companies
The average CPC for the real estate industry on Facebook stands at $1.81 with a below-average CPA (cost per action) of $16.92. Retiring individuals, movers, and remote workers engage the most with real estate ads on Facebook.
Facebook works for real estate advertisement because it harbors the right audience for it. 74% of 35- to 54-year-olds and 52% of those 55 and over are on Facebook. People from this age bracket actively seek out property to buy. Similarly, South Asians hold a huge Facebook demographic as well. They’re our “movers” as there is a recent trend to move to big cities from villages among them. Real estate agents can target such movers with affordable land and housing in cities.
The covid-19 pandemic pushed many office workers into their homes. Now they look for bigger houses to set up an office and have more space to do other activities at home, so there has been an increase in real estate properties in suburban areas.
Real Estate Companies with the best Facebook Ad Campaigns:
- QuintoAndar
- Roger Prasad – Silicon Valley Real Estate
- Zephyr Real Estate
- Northern Atlanta Real Estate
- JSP Realtors
- John and Mellissa Steele, San Diego Realtors
- Daft (a real estate company in the UK)
Protip for real estate advertisers:
Use satisfied customer testimonials in your ads or live on Facebook to create a virtual tour of your property. If you wish to showcase multiple pictures, use the carousel ad format. Remember to focus on customer’s pain points as well.
Consultant Agencies
Consultation companies can use Facebook’s mass-approaching techniques to target individuals interested in various types of consultations. Consider the following:
- Human Resource Consultancy agencies target different businesses showing them ways to achieve cost-effective HR processes and increased productivity via consultation. Consultant agencies like Accenture and OneAdvice, are on Facebook.
- Foreign Education Consultancy agencies target fresh graduates and show advertisements related to career counselling, especially in Asian and Middle Eastern regions where the trend to study abroad is increasing day by day. And although education has a low CTR of 0.73%, it has high conversion rates averaging at 13.58%.
- Immigration and Visa Consultancy In the age of “Digital Nomads” and home office routine, while taking in consideration the Covid 19 restrictions.
Prior to the pandemic, consultancies agencies benefit from Facebook ads in Asia and the Middle East. For example, the Working Holiday Visa Canada CIC (Citizenship and Immigration Canada) Facebook ad offers people worldwide the opportunity to work in Canada for two whole years in all Canadian provinces. As Covid subsides, this hot market will continue to rise slowly (according to goverment’s regulations) expect this industry to come back full force in 2022!
Investment Companies
The pandemic brought the importance of investments and passive income into the spotlight. Many people are looking to invest either in stocks or cryptocurrency. In the pandemic, both bitcoin and gold reached the maximum value and are expected to increase further. Due to this, many eyes and interests have turned towards investments.
Brokerage houses can advertise their online stock buying and selling platform. Specific stocks can be targeted towards specific individuals and regions, considering the economy and risk factors.
Advertisement campaigns of trading platforms like IQ options, OctaFX, and ExpertOptions performed well on Facebook.
Fitness and Healthcare Industry
Fitness and healthcare industries are best suited for Facebook advertisement because both these industries have excellent engagement, as evident by their ad metrics:
- Fitness has a high CTR (click-through-rate) of 1.01%
- Healthcare has a cheap CPC (cost-per-click) of $0.63 and a below-average CPA (cost-per-action) of $12.31
During the pandemic, online availability of medical services became a necessity, and many people started looking for such services for convenience and safety. Medical services like online checkups and consultations are in high demand and are expected to stay in demand in the future. There’s a huge margin for medical consultancy companies to provide online medical care by leveraging Facebook ads. Clinics providing online psychological therapy can also benefit from Facebook advertising.
Staying in-doors and being constantly reminded of health during the pandemic made people fitness conscious. Many people have started to look for online fitness consultants. Fitness companies should advertise on Facebook to spread awareness about their services to most of the audience at minimum cost.
Best performing Fitness & Healthcare Ads on Facebook:
- DailyBurn: provides workout and nutrition programs
- PillPack: an online pharmacy
- Lumosity: offers games to improve cognitive health
- truBrain: functional food and beverage brand
- Six Month Smiles: offers invisible aligners and a clear braces system for adults
- Osteo Bi-Flex: provides products to support joint comfort and mobility
Tips for making your Fitness and Healthcare Facebook ads stand out:
- Present your ad in a way that shows that it’s backed up by real scientifically-valid claims to gain the trust of your consumers.
- Create the fear of missing out by incorporating a high-energy video into your Facebook ad.
- Add data and statistics to catch the eye of potential fitness enthusiasts as it serves as a good source of motivation for them.
- Use “limited time” offers to create a sense of urgency in your Facebook ads. The click-through rates hit the ceiling with this strategy.
To Conclusion
Facebook advertisement has changed the world of marketing and is a pioneer in increasing awareness about the brand and reaching potential customers.
Facebook bounds no business to avail the platform and reaches their targeted audience. However, industries like retail, e-commerce, real estate, consultancy agencies, investment companies, fitness, and healthcare benefit the most from Facebook ads. In this world of incredibly high competition, businesses need to realize the wisdom behind first-mover advantage and avail these services.
