Did you know that about 74% of US adults visit Facebook at least once a day? And over 2.6 billion people use Facebook every month?

With so many active users, Facebook ads are a must, especially if you’re looking to reach new audiences in places where people are already spending a lot of time on the site.

Facebook’s business platform has advanced over the years, offering advertisers more options to reach new customers and retarget previous customers. But with so many options available, it’s daunting to figure out which Facebook Ad type is best for your business and marketing objectives. However, if you’re feeling overwhelmed, check out the following five types of Facebook ads to see how you can leverage them to scale your business and generate more revenue.

1.   Facebook Lead Generation Ads

You can use lead ads for various customer acquisition needs – from newsletter subscriptions to event registration, to quote requests.

When one clicks on a lead generation ad, they’re presented with a context card, which offers additional information. Here you can tell prospects about your business, your offer, and you can explain why they should share their information with you.

The beauty of using lead generation ads is that Facebook auto-populates most of the fields a prospect would need to fill out manually. This reduces friction, encouraging your prospects to follow through.

So, if you’re want to grow your email list, then lead generation ads are perfect for you. By using Zapier, you can connect your lead ad with your email service provider and leverage automation. This way new contacts will be added to one of your lists and they’ll be entered into one of your automated workflows.

Facebook Lead Generation Ads Tips:

• Keep your copy short because long forms lead to low conversion rates.
• Avoid using open-ended questions. Open-ended questions are hard and they take long to answer increasing drop off. Instead, use multiple choice.
• Avoid offering too many choices. If you choose to use multiple-choice questions, offer three to four options only.
• Thank your prospects. Don’t forget to add a custom “thank you” to show your appreciation.

2.   Facebook Dynamic Ads

Facebook Dynamic Ads allow you to market products from any catalog to prospects who have shown interest on your website, in your app, or anywhere on the web. You can create dynamic ads in the image, carousel, or collection ad format.

The primary difference is that rather than creating individual ads for each product, dynamic ads enable you to create a template that automatically pulls information and images form your catalog.

So, if, for example, a visitor looked at a pair of jeans on your website, the dynamic ad will retarget them with the same information and you don’t have to re-upload images and copy.

Carousel ads or multi-product Facebook ads are forms of dynamic ads that promote a collection of multiple products from your online business. According to Facebook, marketers who use carousel ad type have a 30-50% decline in cost per acquisition and a 20-30% decline in cost per click.

For instance, here’s how Nuu-Muu leverages carousel ads to showcase a range of products:

Applying custom audiences to your carousel ads helps you to curate a more targeted collection of products based on who will see the ads. For example, if you have product categories on your website, create carousel ads for different product categories and show them to visitors who’ve visited pages within the corresponding category.

When creating dynamic ads, it’s brilliant to use the Product Catalog Sales ad objective. Here’s why:

More Personalized

When running dynamic ads, the copy is the same for everyone who sees them, but the creative is 100% unique and personalized based on the behaviors of your website visitors.

You Can Run Campaigns Indefinitely

As an advertiser who runs loads of ads, you know that refreshing the creative can be time-consuming. However, with the Facebook dynamic ads, you can set the creative and forget it. You just need to monitor performance!

Accomplish Multiple Objectives

Dynamic ads allow you to choose four different audiences to target:

• Those who viewed a product, but didn’t make a purchase
• Those who added a product, but didn’t make a purchase
• To upsell products
• To cross-sell products

Depending on your selected audience, the ad will automatically get optimized for each objective, which saves you time and generates better results.

Better Results

Most of Facebook’s largest marketing partners have had remarkable results, thanks to dynamic ads. For instance, Wayfair beat their customer acquisition target by over 20% thanks to dynamic ads.

The reason why dynamic ads guarantee high ROI is that they’re the most personalized, targeted, and relevant ads a business can run.

3.   Facebook Abandoned Cart Ads

According to the Baymard Institute, over 70% of shoppers abandon their carts.

So, how can you get these shoppers back to your website so they can complete their purchase? Thanks to retargeting, you can run highly personalized Facebook ads aimed at those individuals. Primarily, abandoned cart ads offer incentives, such as free shipping or 20% off, if the person returns to complete their purchase.

Using fun videos with these types of ads can deliver even more impressive results.

4.   Existing Customers New Products Ads

It’s easier to turn a first-time customer into a repeat buyer than it’s to turn a cold lead into a first-time buyer. In fact, it costs five times more to attract a new customer than it does to retain an existing one.

According to Bain & Company, increasing customer retention by 5% can increase your profits by 25% to 95%. Even more impressive, you’re 60-70% more likely to sell to an existing customer. While the probability of selling to a new customer is 5-20%.

Based on the data about existing customers, it’s a no brainer that when you roll out a new product, you should run an announcement campaign targeting your existing customers.

5.   New Traffic Generation Ads

Retargeting is brilliant, but if you don’t drive high-quality traffic to your site, it won’t be effective. So, it’s great to have a Facebook campaign driving potential new customers to your site. This is a first touch point campaign because this is likely the first time a customer viewing the ad is hearing about your business.

For instance, this is how DreamCloud Sleep leveraged traffic generation ads to announce their brand and product to their audience.

Generally, this ad type generates a lower click-through rate and a higher cost per click than retargeting campaigns because you don’t know a lot about the prospects viewing your ads. However, the following tips can help you decrease the cost and improve the performance of your campaigns:

Create A Lookalike Audience

Do you have a prospect list? Then you can easily import that into the Ads Manager to create a new Custom Audience.

Next, use your custom audience to create a Lookalike Audience of 2-20M people. The lookalike audience comprises Facebook users who closely match your existing customers, which makes it easier to target them and generate impressive results.

A/B Test

A/B test your Facebook ads, regardless of the ad type you choose. Also, it’s essential to A/B test your new traffic generation ads. For a new campaign, create three copy options and another three variants. Test the variants on multiple audiences to see which one performs better. Then ramp up your revenue on your best-performing copy, creative, and audience.

However, if you’re to Facebook advertising, start small, experiment, analyze results, and iterate.