When we talk about social media, a lot of things come to mind: Facebook, Twitter, Youtube, Instagram, Tik Tok and many others. But why advertise on Facebook and Instagram specifically?

With the right advertising strategy, these social media platforms provide huge opportunities for business owners and marketers.

But you may ask, if you have to choose one social media platform, what would that be and why?

The simple answer would be, we should assess the social media sites in terms of popularity and return on investment (ROI).

The best metric to assess the popularity of a certain platform is in terms of monthly active users (MAU). This is very important for social media advertisers because the more users are in a platform, the more people you can advertise and the more diverse is your audiences.

Related: How to Start a Dropshipping Business

ROI is an approximate measure of how much return you get for every penny spent. For social media ROI, it is defined by the formula:

Social Media ROI = (Net Result – Cost) / Cost

Or quite simply, if I sold $400 worth of toy products thru Facebook and I spent $100 for ads (labor and fees) & $80 for product costs, my ROI would be 2.2 or 220% (320 – 100 / 100). This means I would earn more than double for every dollar spent on Facebook ads!

Now let us compare the top social media platforms in terms of these two metrics.


According to Statista, the most popular social media site is Facebook with a massive 2.7 Billion MAU. It is followed by Youtube & WhatsApp, each platform has a whopping 2 Billion MAU, Messenger with 1.3 Billion MAU and WeChat with 1.06 Billion MAU.


A 2017 survey of senior ad buyers conducted by Cowen and Company shows that Google and Facebook deliver the best ROI. 48% of the respondents said that Google has the best ROI, while 30% also believed that Facebook is the best social media advertising platform.

Now it’s crystal clear that Facebook is the top contender when it comes to popularity and ROI. But not only that, I consider Facebook to be the most powerful advertising platform and here are 4 reasons why.

Cheap, Laser Targeting

Whereas Google only allows you to display your ads for specific keywords being searched by users, Facebook allows you target audiences according to its demographics such as age, gender, education, location, relationship, job title, etc.; behaviors such as digital activities, purchase behavior, travel, etc.; and most importantly your audience’s interests such as business industries, entertainment, shopping, food & drink, technology and many others.


Now that is a highly-targeted audience for your brand!

Facebook ads are also very cheap. In fact, the average cost per click (CPC) is around $0.64! Compare that to Google Adwords is around $2.32.

Provided that your site is optimized for conversion, the CPC is absolutely a no-brainer.

Related: Withdraw Funds from Payoneer to GCash

Highly Customizable Campaigns

For every campaign, you choose an objective. This is indispensable because not a single ad works for every campaign.

There are 11 objectives under 3 campaign categories: Awareness, Consideration and Conversion. And each campaign objective has different ad variations.


At the ad level, you can customize the ad copy, headline, description, creatives and call to action (CTA).

So what does this tells us? High customization enables more control for advertisers to craft the right ad for the right audience. This means it has higher chances of achieving the campaign objective at the lowest possible cost.

Related: Send Money Using GCash

Scalable and Predictable Results

If you have an eCommerce store and running Facebook ads, how do you know if your Facebook campaigns are profitable? Simple, check your return on ad spend or ROAS!

How do you know if campaigns should be killed or scaled? Again, check your ROAS.


The analytics part of Facebook ads is extremely powerful that you could track every single activity on your ads such as engagement, cost per click (CPC), cost per thousand impressions (CPM), add to carts, app installs, page views, purchases, cost per purchase, ROAS and many others.

With these powerful features, there is no hard guessing what campaigns to stop and to scale up!

Retargeting Campaigns & Lookalike Audiences

What is the secret sauce of Facebook ads? Facebook Pixel.

This simple line of code tracks specific activities on your ads and website, and in turn can be used for retargeting campaigns and lookalike audiences.

A user who visits your site, adds items to cart or makes a purchase, can be retargeted when he visits Facebook again.


You can also create a lookalike audience. They are users who look like your current customers, visitors to your website or page fans.

This is a powerful feature especially for warm audiences as they are more likely to convert than cold audiences.


Facebook is a really powerful social media platform with advanced advertising features. It has the biggest monthly active users and it has enhanced capabilities than other platforms. Advertising cost is also very cheap that provides the greatest bang for your buck!

For serious business owners and marketers, Facebook should be taken advantaged as it offers a ton of possibilities for brand outreach and highly-targeted audience.

eCommerce is also growing at a rapid pace, thanks to COVID-19 people are scared or discouraged to go out unless necessary. Online shopping is the new normal.

When everything’s going online, it makes sense to adapt technological breakthroughs. Surely, it saves us a lot of time and makes our task easy.

Written by
Written byPaul Dabuco
I’m Paul Dabuco, the man behind Juan Investor, one of the top personal finance blogs in the Philippines. I’m passionate about investing and digital marketing. When I’m not blogging, I’m either tinkering on my clients’ Facebook ads or beachbumming. You can read more about me.

Leave a comment

Disclaimer: We may earn a small commission if you end up making a purchase thru our affiliate links at no extra cost to you. We personally use these products and recommend them. Thanks for the support!

Table of Contents