Category: About Facebook
|October 13, 2013||Posted by D. Dixon under About Facebook|
One thing I like to do is to take a look at the stats regarding advertising and marketing because it’s interesting to me; I used to be a marketing analyst so I’m used to this kind of data. So as I look at this, I wonder just how much we bloggers should really buy into […]
GM pulled it’s Facebook advertising claiming they weren’t getting anything from it. I found some data that made me wonder just how true that assessment is.
Not too long ago, GM decided to pull its $10 million Facebook advertising claiming that the ads didn’t work for them. It didn’t go unnoticed that Warren Buffett THEN bought 10 million shares of GM stock but I’ll let the pundits of Wall Street take that one on.
Of course, the blogosphere was up in arms especially since the IPO was right there and the valuation came in at $104 billion. GM’s claims felt suspicious not just because of Warren Buffet or because Ford subsequently increased it’s advertising budget and went on it’s merry way. I had to wonder what exactly weren’t they getting from Facebook ads . According to a recent poll from Emarketer.com, Facebook advertising is projected to crest $5 billion by the end of 2012, that’s up $2 billion from 2011. There are about 1 billion people on Facebook; that’s nearly 14.3% of the world’s population.
Now, not everyone has a multi-million dollar ad budget to play with. With this in mind, I had to ask the question: how can regular advertisers really take advantage of the billion-soul Facebook advertising machine?
- Use Connections/Friends of Connections criteria – According to a recent report from SocialFresh, only 37% of advertisers are using this criteria in their Facebook advertising. Targeting fans and friend of fans helps with your CTR and conversion. In fact, research showed that CTR increased seven-fold on average…and two-thirds of advertisers aren’t using it.
- Consider gender as a criteria – It’s no secret that men and women shop differently but assuming that what you have to sell or share just wouldn’t apply to one gender or another…that can be a very costly assumption. One-third of advertisers used gender as a criteria and saw cost benefits from it.
- Target more than one segment – the idea of “set it and forget it” only works for Ron Popeil, not for advertising on Facebook or even Google. Over half of advertisers target 2-5 segments. It’s provides that targeting advertisers want that helps their CTR and conversion while saving them money.
- Split test – This could be one of the most underutilized practices because it can be very costly. A big part of marketing is optimization. Testing different creative, targeting, landing pages helps you to get to know your customer which helps conversions. Two-thirds of advertisers did do ad creative split testing
- Refresh your creative regularly –According to Webtrends data, ads are most effective within the first 3 days of going live. After that they start to fade. Stats show 66% of advertisers who run long ads don’t refresh which means that they are paying more because their CTR rates are declining.
- Use sponsored stories – If you’ve been hearing about these and have no idea what they are here’s your answer: Sponsored Stories are promoted status updates that are designed to engage users. These ads are easier to maintain, need no creative to refresh (which means budget-friendly) and give advertisers the chance to really engage with users. Now, a little over half of advertisers are NOT using this new form of advertising and they could be missing out.
As with any advertising, there is a lot of trial and error. But as the Facebook advertising becomes more sophisticated, advertisers will have many chances to connect with their fans and users. Check out this great Facebook Ads Infographic from SocialFresh that has more useful info.
So what do you think about Facebook advertising? Was GM right to jump ship? Tell us what you think by leaving a comment below