In a previous post I explained the importance of marketing your Equity Crowdfunding campaign. Social media marketing is one of the most important aspects of any campaign, and Facebook’s advertising platform is incredibly sophisticated in terms of targeting just the right potential investors for your fund.
If you’ve decided to spend a portion of your marketing budget on Facebook Ads, here are my 3 top tips for maximizing ROAS (Return On Ad Spend).
1. Optimize for Traffic for One Week At the Beginning of Your Campaign
If you have a small budget, choose 1-3 interest-based target audiences, and run ads in those ad sets for 1-2 weeks, choosing traffic as your optimization goal.
Then launch a new campaign using the same ad sets, choosing conversion as your optimization goal. This strategy will give Facebook time to learn about your target audiences. Additionally, it will be a more cost effective way to convert cold audiences into warm audiences. If you’ve set up a pixel to capture pageviews, then you’ll be able to set up a custom audience in a new ad set to convert those warm leads into investors. That leads me to my next tip:
2. Set Up Facebook Pixels For Each Purchase Stage Before You Begin Your Campaign
You will need to work with your funding portal to ensure they can place your Facebook pixels on your offering page. At the very least you should set up pixels for PageViews and Purchases.
If your funding portal has several steps in the conversion flow, you can set up a pixel for each step in the process. Each step in the investment flow for which you set up a pixel will become a custom audience that you can retarget for a lower cost per conversion than a cold interest-based audience.
3. Build a Lookalike Audience for each pixel in your Investment Flow
As soon as you have 500 people in a custom audience, Facebook allows you to build a lookalike audience. The most valuable lookalike audience you can build is your Purchase Pixel Lookalike. If you are lucky enough to get at least 500 investors in your fund, you should build a lookalike audience and start targeting ads to those people as soon as possible. At ValueSetters we’ve seen these audiences yield twice the ROAS as the average interest-based audiences.
Still don’t have 500 investors? Not to worry. Remember the PageView pixel you set up and the traffic campaign you launched to drive pageviews? In very little time (depending upon your budget) you should have 500 people in your PageView pixel to build a lookalike audience. This will be a much warmer audience than interest-based audiences and should yield much higher return on ad spend than those cold audiences.
As always, remember that you can’t launch your marketing campaign before your equity crowdfunding campaign goes live. That’s called “conditioning the market” and violates SEC rules.