Exclusive: Target Facebook Fans for 44% Cheaper Registrations Says TBG Digital Test

By advertising to Facebook fans instead of non-fans, advertisers can reduce the acquisition cost of registrations by 44%, event signups by 33%, and purchases by 15%. These results of a 4.1 billion ad-impression, thirteen-client test have been exclusively shared with Inside Facebook by TBG Digital, developers of one of the most popular technology solutions for buying huge volumes of Facebook ads.

The data helps establish the value of a Facebook fan by demonstrating some of the savings in conversion acquisition costs business can make by investing in growing their fan bases. This is because in addition to sending Page updates to fans, businesses can specifically target their own fan base with Facebook ads.

For instance, if a health care company planned on acquiring 1 million registrations over a year via Facebook ads at $10 per registration, it could save $4.4 million by advertising to its Facebook fans instead of the general Facebook population. This means if the cost of attaining enough fans from which to secure 1 million health care registrations is less than $4.4 million, the company has produced a direct return on investment on its Facebook fan acquisition strategy without even counting the value of being able to communicate directly with the fans through Page updates.

TBG Digital is in a relatively unique position to provide this data, as the company serves upwards of 2.1 billion ad impressions a day, making it one of the largest ad buying services or tools on top of the Facebook Ads API. Last month, it shared data indicating that Facebook’s Sponsored Stories ad unit delivers a 46% higher click through rate, and an 18% lower cost per fan than traditional Facebook ads.

The test results should spur a wide variety of companies to consider increasing their efforts to drive fans to their Facebook Page in order to be able to specifically target these users with Facebook ads. A Facebook fan base could be wise investment for web services including off-platform game developers and group buying networks such as Groupon who frequently spend huge amounts on registration acquisition. The one-time cost of fan acquisition could assist them to market new games and deals for years to come.

Event promoters should look to serve ads to the fan bases of any venue, entertainer, or sponsor involved in the production of their event to take advantage of the reduced cost of signups culled from fan targeting. They should also work to build their own fan bases through promotions and physical on-site kiosks that can collect Likes from event goers.

Ecommerce sites and brands that conduct direct response advertising should also look at how developing a Facebook fan base now could be smart strategic move that could lower costs later.

While TBG Digital benefits from increased interest in advertising on Facebook that these results might generate, its testing methods are sound and it uses a large enough sample size to be reliable. Facebook is obviously not the only online advertising medium, and email marketing is still very important. However, similar to how accruing large email lists was eventually recognized as a sound marketing investment, Facebook Likes are emerging as valuable for targeting ads as well as for communicating directly with customers through Page updates.

Some companies might worry that a currently small fan base means there’s no point in focusing on building a Facebook Page audience. Really though, this means there’s plenty of low hanging fruit — people who truly care about their brand but haven’t thought to Like them — that is yet to be picked through ads and viral campaigns. Facebook’s Sponsored Stories allow brands to turn a small buzz into highly efficient fan acquisition campaigns.

Finally, as more brands realize the importance of Facebook, competition for fans will increase and the cost per fan will probably increase. Armed with these new numbers demonstrating the value of a Facebook fan, marketers should push their companies to redouble their fan acquisition initiatives as a component of a clearly measurable strategy for generating ROI from social.

For strategies on how to most effectively use Facebook ads to drive Likes to your Page and other types of conversions, visit the Facebook Marketing Bible, Inside Network’s comprehensive guide to advertising and marketing on Facebook.

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17 Responses to “Exclusive: Target Facebook Fans for 44% Cheaper Registrations Says TBG Digital Test”

  1. links for 2011-06-07 :: MarketingSavant says:

    [...] Exclusive: Target Facebook Fans for 44% Cheaper Registrations Says TBG Digital Test By advertising to Facebook fans instead of non-fans, advertisers can reduce the acquisition cost of registrations by 44%, event signups by 33%, and purchases by 15%. These results of a 4.1 billion ad-impression, thirteen-client test have been exclusively shared with Inside Facebook by TBG Digital, developers of one of the most popular technology solutions for buying huge volumes of Facebook ads. (tags: facebook socialmedia) If you enjoyed this post, make sure you subscribe to my RSS feed! Tweet This entry was posted in Links Previous Post: What to Do About the 10 Things Social Media Can’t Do blog comments powered by Disqus /* [...]

  2. Comment Réduire Les Coûts d’Acquisition Pour Une Campagne Publicitaire Facebook ? | Emarketinglicious.fr says:

    [...] : Inside Facebook Tags: coût acquisition, facebook, publicité [...]

  3. Building Your Facebook Presence: The There There - Extole says:

    [...] news from TBG Digital, which provides an advertising platform focused on Facebook ads. This week, Inside Facebook shared results from TBG outlining significant reductions in conversion costs from ads targeting at Facebook Fans [...]

  4. Advertising to Facebook Fans Improves Conversions, Says Study says:

    [...] is according to a recent blog post on Inside Facebook, who was privvy to data from the social advertising agency TBG showing these results. Over the [...]

  5. Jak poprawić współczynnik konwersji kampanii reklamowych na Facebooku? | Social Media Blog says:

    [...] serwisie Inside Facebook opublikowano interesujące wyniki badań nad konwersją. Przeprowadzono je na podstawie zrealizowanych na [...]

  6. Jari Juslén | Strategioita digitaaliseen maailmaan | Konsultointi, koulutus, markkinointipalvelut » Facebook-mainontaa kannattaa kohdistaa myös Facebook-sivun tykkääjiin says:

    [...] näyttää myös niille, jotka jo tykkäävät mainostajan Facebook-sivusta. Näin väittää Inside Facebook – blogi ja esittää johtopäätöksen tueksi [...]

  7. Effektivare att annonsera för fans « Jajja Magazine says:

    [...] mer på: http://www.insidefacebook.com AKPC_IDS += [...]

  8. Effektivare att annonsera för fans | SEO • Sökmotoroptimering says:

    [...] Läs mer på: http://www.insidefacebook.com [...]

  9. Facebook Fans help manage your bottom line. — Internet Marketing Consulting & Coaching by Carol Cole-Lewis says:

    [...] users. Marketing to fans of your Facebook Page is even more effective. Hubspot relates a recent Inside Facebook post about research from Facebook ad buying service TBG Digital. The post says: “By [...]

  10. Exclusive: Target Facebook Fans for 44% Cheaper Registrations Says TBG Digital Test says:

    [...] http://www.insidefacebook.com/2011/06/06/target-facebook-fans-cheaper-registrations/ Tweet « [...]

  11. According to Study: Advertising to Facebook Fans Improves Conversation | All We Like says:

    [...] As opposed to targeting non-fans, the cost of converting people to sign-up for events, purchase products or register for services considerably decreases when businesses run Facebook ads that hits existing fans. This is based on Inside Facebook’s latest blog post. [...]

  12. Going Beyond The Facebook Like Land Grab says:

    [...] terms of ROI, there is hard evidence that likes are financially important to brands. A study by Facebook ad network TBG Digital analyzing 4.1 billion Facebook ad impressions for 13 different brands noted that advertisements [...]

  13. Writeaholic.nl » Blog Archive » Een fanbase opbouwen: met of zonder incentive? says:

    [...] elke willekeurige organisatie gericht op het vergroten van de fanbase. Vreemd. Onlangs bleek al uit onderzoek dat adverteren op Facebook onder je fans veel meer sales oplevert dan adverteren naar niet-fans. [...]

  14. Buying fans on Facebook? Think again. « Nathan Levi says:

    [...] Exclusive: Target Facebook Fans for 44% Cheaper Registrations Says TBG Digital Test (insidefacebook.com) [...]

  15. Facebook Ads e le notizie sponsorizzate | meetweb blog says:

    [...] riduzione del costo per click del 20%. (Fonte insidefacebook.com) [...]

  16. Going Beyond The Facebook Like Land Grab - AllFacebook says:

    [...] terms of ROI, there is hard evidence that likes are financially important to brands. A study by Facebook ad network TBG Digital analyzing 4.1 billion Facebook ad impressions for 13 different brands noted that advertisements [...]

  17. Posts in the Press Kit Category at TBG Digital says:

    [...] The methodology has been approved by the University of Cambridge Psychometrics Centre, indicating that the results should be accurate. We have omitted any findings we believe might be significantly biased due to the types of clients TBG Digital has recently signed. In the past, the popular Ads API tool provider has released reports showing the high efficiency of Facebook’s Sponsored Stories ad units and ads that target existing fans. [...]

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