Social media advertising has become increasingly important in today’s Internet marketplace. One of the fastest-growing platforms for social media advertising is Facebook Ads. This medium has a tremendous potential to allow businesses to target their key demographics and generate maximum conversions. Facebook has extensive leverage in this area, as never before has there been a platform for marketers that provides such detailed customer demographic information. The site allows you to specifically select or demographic through a multitude of different options. These include location down to the zip code, age, gender, interests and connections. This is an incredibly useful feature for businesses and marketers, as their ad offerings will be targeted appropriately. Through Facebook Ads dashboard, the company can also view the estimated reach within the demographic targeting they selected. The more niche the segmentation, the more precise the reach and hence the smaller the sample size.
The pricing model that Facebook has leveraged is that of cost per click. There is also an option for marketers and advertisers to choose a cost per impression model. Through the cost per click methodology, you only pay if someone clicks directly on the ad. With the cost per impression, for every 1000 impressions, you will be assessed the advertising fee. Costs can vary widely as the unique components of the campaign vary. Facebook will give you a ballpark range on whatever model you select, whether it is CPC or CPM. Dependent upon the demographic target and the bid amount for the ad in addition to the duration of placement, all of these play a role in the cost of the advertising. Typically, Facebook Ads are less than that of the equating keyword ads in Google and for the most part, less valuable due to consumer intent. Google AdWords are more expensive for a number of reasons. AdWords has been around for more than 10 years and hence their advertising customers typically bid for the same keywords on repeating basis. Through demand, this creates a situation in which specific keywords are hard to target and become highly competitive. This high competition also equates to higher prices for those specific keywords. As marketers try to get a leg up on the competition, more emphasis and hence more advertising dollars have shifted over to Facebook Ads.
Facebook Ads offers detailed reporting that allow marketers and businesses to gather important statistical information on their campaigns. Statistics that are included within these reports include impressions, click through rate and time spent on page. Many marketers have been able to leverage the Facebook ad platform to not only generate more traffic to their existing web properties but to boost the “likes” of their own Facebook Pages. Companies have developed coupon programs that allow potential customers to use coupon codes that are specifically created for the Facebook platform. Once they arrive at the company site, they can utilize the Facebook coupon code during their purchasing process. This allows the parent company to identify the conversion rates and success of their Facebook ad campaign. Advertising on Facebook is growing in popularity. As the membership on the site approaches 1 billion users, we will continue to see more granularities in targeted demographics and further enhancement to the features available to marketers. As with all advertising, it is imperative that you use creativity in your marketing and optimize the investment spent on the campaign.
Are you using Facebook Ads as part of your online marketing strategy? Why or why not? What kind of success have you seen from your campaigns?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1,800,000 in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a Free Online Marketing Consultation.
To read more of the article that inspired this blog, please visit: http://www.emarketer.com/Article.aspx?R=1009058