Facebook has received a bad rap from direct response advertisers over the years. Many clients think Facebook inventory is overvalued and is a place for branding and awareness dollars. They think it can’t possibly back out into their strict KPI goals. General Motors famously pulled the plug on their Facebook budget earlier this year. According to a recent CNBC poll, less than 50% of Facebook users say they click on sponsored ads. Another study slams Facebook for its low click through rate compared to Google’s.
Well, I have news for these amateurs….they are measuring success all wrong. In the display world, we measure a little thing called view through conversions. Study after study has indicated that only 16 percent of people even click on display ads and actually clickers tend to be less educated and have lower household incomes. Since post click conversions only account for a small portion of display conversions, it is extremely important to track view through conversions. A view through conversion occurs after someone has seen your ad, does not click, but visits your site after viewing the ad and converts. This allows advertisers to get a true read on how their display budgets are working to impact their bottom line.
Guess what? Facebook allows view through conversion tracking! We have appended this tracking for some of our largest retail and lead gen clients and have seen huge incremental lift on conversion.
For direct response advertisers, it’s important to remember that Facebook offers extremely precise targeting methods. Get an email list from your CRM team and match it to Facebook emails to create your own unique Facebook Custom Audience – then run customized ads to this group of people. We’ve seen match rates from 65% – 80%! You can also run ads to your fans, friends of your fans, top pages that your fans have in common, precise interests that your audience has mentioned in their profile or have talked about in their status updates, and so much more. Now that Facebook has opened up their inventory on Facebook Exchange, advertisers can now expand their retargeting campaign to Facebook as well.
Since Facebook has gone public, their ad choices and targeting options continue to improve.
We are proud of the successful campaigns we’ve run on Facebook. It has taken time, a few headaches, and multiple cocktails to crack, but we are glad we can confidently run these campaigns for our clients.
As social media companies have grown, they have discovered a new stream of revenue: display marketing. We, at Booyah, have carried out an experiment with one of our retail clients to test the efficacy of this marketing channel on Facebook.
Facebook display marketing has some neat features that can be used by marketers to achieve the greatest results possible. This includes, but is not limited to, targeting your clients’ Fans, the Friends of their Fans, and specified keywords. Our hypothesis was that just by seeing an ad, Facebook users in each targeting group would be more likely to purchase from the retail clients website (regardless of click behavior). By segmenting our targeting groups into a test group (that sees an actual ad) and a control group (that sees a Smokey Bear PSA), we were able to measure the lift in conversion rate by the display marketing.
Overall, we measured a 37.4% lift in conversion rates with no change in average order value. Within this, we measured a 90.4% lift (nearly double!) for Friends of Fans and a 58.2% lift for the Keyword targeting group. We measured no significant difference for the Fans of the client. However, Fans were 12 times more likely to purchase than the other targeting groups regardless of advertising!
Since Fans are much more likely to purchase, branding exercises and follower campaigns to grow your client’s Fan base are important, but remember to not advertise to them once they have become a fan of your client’s brand. This will also increase the pool of Friends of Fans whose purchase behavior improves dramatically from display marketing on Facebook. It is also a good idea to dig for users that may have common interest in your client’s brand and not be aware of it by targeting specified keywords within their profiles.