There are over one billion people on Facebook. According to HubSpot, 93% of adults on the Internet are on Facebook.
Facebook’s three ad formats have been combined into one:
• Page Post Like Sponsored Story
• Page Post Comment Sponsored Story
• Page Post Ad
A “Like Ad” is simply an ad on Facebook that shows one of your friends has Liked a certain page.
Now, when you promote a post from your Facebook Page, the ad will automatically include likes and comments. According to research from Nielsen and comScore, this social context leads to better performance and ROI.
“Like Ads” work for a few reasons:
– They’re easy to set up
– There’s no commitment, try a week test
– They instantly get your page exposed to new fans
– They have social proof, which encourages others to also like the page.
Facebook ads of course, have great targeting options.
6 reasons why Facebook ads work
1. Location – Are you a local business? Try targeting a city or zip code within 50 miles of your business.
2. Age – If you’re product is more suitable for certain ages, specify this in the set up. It’s a good idea to also create a couple-several ads, testing age ranges, to see what performs best.
3. Gender – Promoting a make-up seminar or women’s clothing? Well, don’t waste your ad on 60 year old men.
4. Precise Interests – This can be powerful and Facebook ads ace in the hole. If you’re in the business of organic pet food, you might want to target those who have “liked” animal related pages, fitness, Whole Foods, etc.
5. Broad Categories – Use this category to target people that share similar interests as well.
6. Connections – Here you can choose to show the ad to “anyone”, “Only people not connected to your page” or “Advanced connection”.
7. Friends of Connections – We all consider friend recommendations when thinking about a purchase. That’s why this feature is great. From here, you can choose to only show the ad to people whose friends have already “liked” your page. Birds of a feather flock together.
Facebook ads hold an overall premise that recommendations from friends and companies alike are going to be more effective than traditional display advertising. Andrew Lipsman, VP of Industry Analysis at comScore, and co-author of the recent study, “The Power of Like: How Social Marketing Works performed a collaborative study between comScore and Facebook.
According to Lipsman, “Facebook ads can absolutely drive advertising effectiveness,” he says, “but there aren’t enough data points to generalize yet.” In other words, there are many variables at play, including the type of ad, demographics, image used, location, product and creative elements.
The study found that “fans” of retailers, on average, spent significantly more at those stores than did the general population — more than twice as much at Amazon, Best Buy and Target, and almost that much more at Walmart.
What differentiates Facebook ads from traditional online advertising is their effectiveness is better judged on the basis of the “behavioral lift” from the message a user has received after they’ve already liked the brand.
So, why do Facebook ads work?
1. They are well targeted. Advertisers can tell Facebook who exactly should see the ad.
2. The second reason lies within the creator of the ad and their ability to create good copy, striking imagery and targeting that makes sense for the product or service.
“One of the biggest benefits for Facebook advertising is that you are reaching your target demographic in their comfort zone. When a person is logged into their Facebook page, they are comfortable. When they see your ad on their Facebook page there is a certain amount of trust that is inherent and that you don’t get when seeing a random link on a Google search.” ~ Tyler Barnett, founder and president of Tyler Barnett PR.
And to make things more interesting, Facebook is now in the remarketing game. Remarketing is not a new concept for advertisers; Google has been doing it through their display network for years. For example, a shopper has been checking out a blender on Target or Macy’s. When they come back to Facebook, they can show the user that exact high-tech blender they were considering on the brands website. Because chances are, those prospects will head to Facebook later, at some point.
Studies show that there is a significant increase in the click through rates on advertisements that are integrated with remarketing. It’s a friendly little nudge at the end of the marketing buying cycle.
It’s still relatively new to Facebook as they only released this functionality in 2012 and marketers were limited to targeting based on demographics and educated guesses. Second, according to Facebook, more than 950 million people spend over 6 hours per month on Facebook’s site. That’s huge.
Facebook began opening up news feed ad inventory to Facebook Exchange at the end of March and expanded the inventory offering to all its FBX partners in May. Triggit, a Facebook Exchange (FBX) partner, says that the FBX news feed click through rates now rival those they see from AdWords.
And on October 8th 2013, Facebook just announced an overhaul of both its basic ad-buying platform, Ads Manager, and its Power Editor, both now boasting a more streamlined interface. Now, advertisers are first asked to identify their objectives. This could be a sales conversion on a website or increasing total page Likes.
Once an objective has been identified, Facebook guides advertisers to the most appropriate ad. The advertiser then chooses where the ad appears, in the News Feed or the right column. Users can also now upload multiple images for a single campaign, allowing five different ads to run at once. In the analytics dashboard, you can now quickly assess which images are performing best.
Have you tried advertising in Facebook?