More than anything else, Facebook advertising offers merchants direct access to engaged users and the ability to target ads more precisely than ever previously thought possible. However, the number of online merchants who haven’t accepted this reality and internalized what social targeting can do for their online marketing return on investment is surprising. Though it is the responsibility of online marketing consultants to convince their clients of the value of Facebook ad services, it is worthwhile to look at evidence beyond the anecdotal here. If you are a merchant that remains on the fence about advertising on Facebook or other social media networks, this information will be very helpful.
A recent USA Today article on Facebook’s IPO prospects summarizes the importance from the market end very well. “Facebook…could rake in $2.19 billion in display-as sales this year…eclipsing Yahoo’s 13% and Google’s 9.3% [search market shares].” So these figures, also reported on by giants Reuters and The Financial Times blog, tell us that the social network is sprinting ahead of the competition for display advertising as everyone recognizes its ad value. It may be reassuring to know that the industry has tested this medium and found it very lucrative. But what about data on the actual impact?
Facebook and every marketing firm that offers Facebook advertising will be quick to point out that 500 million engaged users is a very large potential customer pool. Supplement this with the roughly 200 million using Twitter, and a social media campaign can gain “viral” momentum very quickly. But some may still be thinking, “so what?” Not all half a million users will see the ads, fewer will click on them, and fewer still will be converted into customers. The answer involves more numbers. Compare advertising on Facebook to in The New York Times, arguably a very good way to target specific consumer markets. It has a circulation of 880,000 daily, up to 1.35 million on Sunday. A full page ad can easily cost between $30,000 and $110,000, depending a number of variables. That’s a huge up-front risk for the chance to establish a brand in some readers’ minds.
Facebook and every marketing firm that offers Facebook advertising will be quick to point out that 500 million engaged users is a very large potential customer pool. Supplement this with the roughly 200 million using Twitter, and a social media campaign can gain “viral” momentum very quickly. But some may still be thinking, “so what?” Not all half a million users will see the ads, fewer will click on them, and fewer still will be converted into customers. The answer involves more numbers. Compare advertising on Facebook to in The New York Times, arguably a very good way to target specific consumer markets. It has a circulation of 880,000 daily, up to 1.35 million on Sunday. A full page ad can easily cost between $30,000 and $110,000, depending a number of variables. That’s a huge up-front risk for the chance to establish a brand in some readers’ minds.
Its a Guest Post from Ryan De Riegov, who is a California native and Search Engine Marketing consultant specializing in ppc management and SEO