Business, Marketing Technology

Facebook Ads vs Influencer Marketing

Julio Cerne / August 31, 2020

Facebook ads have been a tried and true advertising method for many companies. However, if an SMB is to win on Facebook ads, it’s all about the budget. When considering Facebook ads vs influencer marketing on an SMB budget, influencers will always show greater ROI.

62% of SMB fail on a Facebook advertisement, and the reason for failing isn’t entirely because they don’t know how to place an ad on the platform, it’s because larger brands with deeper budgets also pay to reach the same customers the SMB are trying to reach.

We all know the primary goal of any business is to MAKE MONEY, and to make money a business needs to spend money. Cliché but true. It’s basic mathematics.

For example: if an SMB has a Facebook ad budget of $2000 per month, ideally that business would need to make a 3X + ROI for the business to grow. But if a brand that has $10,000 plus per month budget is also targeting the same customers as the SMB… who do you think will reach and get the most ROI?

96% of people trust people they know.

Advertising on Facebook certainly reaches the masses at a geo-target level but there are other digital marketing efforts a business can do to reach their customer and get a higher ROI.

Take influencer marketing as an example. If it’s done right, businesses will reach their audience faster, cheaper, and actually develop an emotional connection with their consumer thus winning a loyal fan base.

And why does influencer marketing work, because it’s digital word of mouth marketing, an essential component to the success of SMBs. 96% of people trust people they know.

It’s in our human nature. At an early age, our brains and human instincts are wired to trust family, friends, work colleagues and even a person who they don’t actually know personally but has the same life values, I call this the “tribal effect”, a bond that is created based on the same beliefs and life perspectives.

So, when it comes to Facebook ads vs Influencer marketing, which is more effective? If a business has a larger budget to its competitors, then Facebook ads can be effective, however, ads lack trust. If you’re looking for a more authentic approach, influencer marketing is a definite way to create trusting connections with your customers.

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