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Facebook’s casual, friendly environment requires an active social media marketing strategy that begins with creating a Facebook Business Fan Page.  You will want to pay careful attention to layout, as the visual component is a key aspect of the Facebook experience. Social media marketing for business pages revolves around furthering your conversation with audiences by posting industry-related articles, images, videos, etc. If you know how to use it properly, Facebook can be one of the most powerful advertising platforms for driving your business forward. And it's not just for raising brand awareness. In this guide you'll learn how to create effective Facebook ads that generate real leads. 

Essentially, the difference between paid search and paid social can be reduced and simplified to a single truism: paid search helps prospective customers find your business, while paid social helps your business find prospective customers. Facebook advertising does this by allowing you to target specific audiences that are likely to be interested in your products and services by leveraging the immense wealth of data Facebook has about its users. First, you identify your campaign objective, or what you want your Facebook ads to actually accomplish. This might be driving traffic to your website, encouraging visitors to download your app, generating leads, or increasing sales. 

Once you’ve identified your campaign objective, you then tell Facebook to whom your ads should be displayed. This is done by what is known as audience segmentation – the process of providing Facebook with a profile of your ideal audience so Facebook only displays your ads to people who exhibit the behaviors and belong to the demographics you’re interested in. Facebook has thousands of custom audience parameters, allowing you to create amazingly refined audience segments for your campaigns. You can also create custom audiences by uploading data on existing customers that you already have, which enables Facebook to create “lookalike” audiences based on parameters that you choose. 

Next, you create the ads you want to run. Facebook ads are highly visual and align with the ways in which people use Facebook, particularly on mobile devices – definitely no tiny, text-based ads here. Finally, you use data and analytics to evaluate the performance of your ads, allowing you to make changes to improve everything from impression share to click-through rate, just as you would in a paid search campaign. 

Just like Google AdWords and Bing Ads, Facebook utilizes an auction system to determine which ads are shown to which users. However, there are a couple of elements that are unique to Facebook advertising, the first of which is a concept known as competitive value. 

The competitive value of a Facebook ad is the sum of an advertiser’s maximum bid – how much an advertiser is willing to pay every time a user takes the desired action – and the ad’s intrinsic quality bid, or how much engagement an ad brings to Facebook and the user experience. Although the precise methodology behind how Facebook calculates intrinsic quality bid is a closely guarded secret, Facebook does concede that factors such as the volume of clicks, likes, and shares is included in this calculation, as is general feedback on an ad.