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Why Facebook ads are often not profitable for small business

The revenue of Facebook ads is ever-increasing, and small businesses are the reasons why.
But not all small businesses profit.
With 2.2 billion users every day, Facebook will easily surpass $4 billion in advertising this year. It has a global reach that promises highly targeted audiences.
All this can be managed with a small dollar amount to begin if the audience is local.
Why, then, do 62 percent of small businesses not make any money with their Facebook ads?
The reason has four parts:

  1. Nature of Facebook
    Facebook has become a friends-and-family favorite, and enabling conversation is Facebook’s first mission, according to Facebook itself. It is an after-work pleasure for most. The key idea is that people are taking a break from work or are at home when they are on Facebook. Something to remember.
  2. The service or product
    Consumer items like clothes, decorations, games, and toys do sell on Facebook. Maybe this is because Facebook ads come to people when they are relaxed.
  3. Facebook targeting
    Facebook’s targeting abilities are widely acclaimed. Yet, it is sometimes impossible to see whether your targeted ad hit the target. You might get likes, comments, or shares, but many times you won’t get them from your actual audience. Why is this? Facebook claims that ads are shared. Yet, the person who shares is often not the target market. If your results are bad, change targeting, but you will probably never be able to confirm whether any portion of your ad hit your target.
    Consumer products that appeal to nearly everyone work best. Service niches, product niches, just won’t work as well. Business products won’t work as well either, though some do.
  4. User skill
    Still, if you want to buy Facebook, you must put in the time to become an expert in its targeting and ad styles.
    An eye-catching meme-like ad with an offer usually will attract likes and shares, which expand your audience organically.

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