A bit of a different story now, right?
If you’re among the 1.59 billion+ active Facebook users (my guess is you are), you’ve likely long noticed the stack of display ads growing in the right-side of your screen, as well as the gradual progression of newsfeed ads now inundating your Facebook experience. Well, Facebook has done A LOT in the past decade to make those ads and its monetization a reality, and now businesses large and small are leveraging Facebook’s Advertising products and user base to reach new and existing customers.
Why Advertise on Facebook?
It’s hard to argue based on the stats that most businesses, SMBs included, can benefit from a Facebook presence and Advertising strategy. A recent Huffington Post article drove this notion home, point blank;
“The simple truth: If you’re a small business with a tight budget, Facebook Advertising is one of the most affordable and effective ways to market your business. In fact, over half of professional marketers say Facebook is the most important social network they use.”
Native Newsfeed ads are especially effective for reaching the massive and ever-growing mobile app user base, and achieve significantly higher engagement rates than desktop ads.
Why does Mobile Matter?
- Over 90% of Facebook’s daily active users access it via mobile. (Facebook Q4 2015 Results)
- Mobile ads get over 13x the click-through-rates of desktop ads. (Tech Crunch)
- Performance-driven ads like Lead Generation ads are only available with Newsfeed placement.
There are a variety of Newsfeed ad types available for advertisers to choose from depending on the results they want to achieve. The diagram below illustrates the types of campaigns Advertisers can run to attract, engage and convert Facebook users throughout their buying cycle.
Many advertisers are also investing in advanced targeting options, such as Custom and Lookalike Audiences, and cross referencing their own proprietary customer data (email addresses and phone numbers) with Facebook user information to target customers based on direct match. While these targeting tactics are not exactly rocket science, Facebook Advertising is undeniably getting more complex. To make matters even more complicated, data and insights gleaned from marketing campaigns in other channels (e.g. Web browsing, Search keywords, email responses) can also be leveraged to enhance Facebook ad targeting – and vice versa!
Centermark clients that run both Pay-Per-Click and Facebook ads together are able to effectively retarget prospects that search (or have searched) for their products and services on Google with targeted newsfeed ads via a Custom Audience campaign. This is a synergistic relationship in that Facebook data can also be leveraged in reverse to refine PPC campaigns for optimal results on both ends.
Here is a simple diagram that shows on a high level how the process works:
So really, what’s an extra $7 CPM for that level of exposure AND precision?! But for any Facebook Advertising cynics out there, here are some compelling recently published stats that might just sell you on the idea:
- 3 million active Facebook advertisers as of 3/2/16 (Facebook data)
- 50% growth in Facebook advertisers from 2015-2016 (Forbes 2016)
- 1 million SMBs advertising on Facebook as of 2013 (techcrunch)
- The average match rate for email lists and Facebook Custom Audiences 48.99% – That’s half your customer base! (Small Business Trends 2016)
- Average CTR for Facebook Custom Audience ads is 1.25% vs 0.9% for standard Facebook ads (emarketer 2015)
- 50% of social referrals to e-commence sites come from Facebook (Business Insider 2015)
- Nov 2013-Nov 2014 case study saw 2x average increase in Facebook Advertising ROI (Kenshoo 2014)
Find the full compilation of stats here.