Facebook is one of the better places for advertising your products and business. It helps you in drawing a lot of traffic to your website. Around 2015, the cost of putting an advertisement on Facebook was very reasonable. One of the reasons for this low cost was because not many people in India were advertising around that time. There was general thought that the spending power of Indian audience was very less.

However, lately advertisers have realized that, the purchasing power of the average Indian audience has increased. Companies have realized the power of social media marketing on Facebook, and Facebook has also made it very easy by optimizing ads for maximum conversions.

The advertising cost on Facebook has almost doubled in 2018 as compared to previous years. But, this is not at all a matter of concern as the purchasing power of your target market has also increased.

A lot of marketers seem worried about the increase in cost of advertising, but they have to realize that the increase in cost of advertising is because more and more brands are now targeting the same audience and demographic.

The main reason for more ads targeting the same audience is because; the revenue potential from this audience is relatively high. If your competitors can spend more money to gain the maximum out of same audience, and earn profit out of it, then with the right product and digital marketing services you should also be able to do that.

Whatever may be the product or service you are selling; my recommendation would be to design your marketing funnel in a way that will enable you to liquidate your acquisition cost first.

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Let us try to understand this through an example. Suppose that I have acquired thousand leads at 10 rupees each. So, total cost of my acquisition will be 10,000 rupees. When I sell my product at 2,000 rupees each, I just need to make 5 sales out of the thousand leads, in order to liquidate the cost of acquisition.

After I have recovered my acquisition amount, I still have thousand leads which I can use to sell my other products, but this time I don’t have to worry about the cost of acquisition because acquisition has already been done. The revenue that I will generate from future sales will be more of a profit because the advertising or acquisition cost is out of the picture.

When the cost of acquisition of leads increases, I just need to step up the conversion ratio of my product which is self liquidating in nature, and I can repeat the same process again and again. For example, if the cost of acquisition of each lead increases to 20 rupees, all I need to do is increase my conversion ratio from 0.5% to 1%. Although, increasing conversion ratio is not that easy, but if you follow the right digital marketing techniques and have a product of superior quality, increasing the conversion ratio upto 2% is technically possible.

That’s why in the place of worrying about increasing cost of Facebook ads, choose and apply the right digital marketing tools with one of the best digital marketing company in Kolkata to increase your conversion and things will be as usual.