Facebook bid type acronyms like CPM and CPC can seem a little unwieldy to novice marketers, but they are powerful once understood.
Nanigans, a Facebook Strategic Preferred Marketing Developer, is trying to demystify the terminology. The company recently released an infographic showing the differences between CPM (cost per 1,000 impressions), CPC (cost per click), oCPM (optimized CPM) and CPA (cost per action).
Want to learn more? Check out the infographic below.
While Facebook and Twitter’s IPOs were a nice shot in the arm for the tech industry, especially in Silicon Valley, it also put the heat on them to produce more revenue-generating advertising products on a regular basis. Compared with SEM, social advertising is in its relatively early days, and quickly evolving – which means that the land-grab race is on.
Facebook has a significant head start, and it’s safe to say that they are the ones pushing the envelope with Twitter nipping at their heels. Here are 3 things I feel Facebook can do to maintain their lead.
Facebook users hide ads for several reasons, but now the site is making a greater effort to understand why.
Facebook announced today a few changes in the ad feedback process. When someone clicks to hide an ad, Facebook is making it easier for the user to explain why, such as the ad was irrelevant or repetitive. Facebook had been testing this process for quite some time, but now it’s fully rolling it out.
Product Manager Max Eulenstein explained the process in a blog post:
We’ve learned that the reason why someone hides an ad can be just as important as the hide itself. If someone doesn’t want to see an ad because it’s not relevant to them, we know we didn’t do a great job choosing that ad and we need to improve. If someone doesn’t want to see an ad because it’s offensive, it probably isn’t a good ad for other people on Facebook, either.
With this update, News Feed is going to take into account the reasons why people give us for hiding an ad. When we identify an ad like this, we’ll show it to fewer people on Facebook.
Facebook is rolling out changes to Power Editor that allow advertisers to preview ads as they’re being created, instead of posting something to the page and then promoting it.
A Facebook spokesperson told Inside Facebook that advertisers will be able to preview the ad during the creation process, edit News Feed ads using Power Editor and bulk import News Feed ads:
This will impact all clients, partners and agencies who use Power Editor. This will particularly affect those who have wanted to create and preview News Feed ads within Power Editor, and later edit those ads. In the past, since these ads were anchored to page posts, they were not changeable. With this change, advertisers can now create News Feed ads at scale, preview them during creation, edit them at any time, and bulk import/export them.
We’ve received very positive feedback on this feature during testing and expect it to drive advertiser satisfaction through more efficient ad creation and management.
We also expect that over time, it will lead to more and higher quality ads in News Feed since now it is much easier to do this at scale.
As more companies realize that advertising on Facebook is a necessity to reach fans and customers, a new study shows that ads play a huge role in gaining conversions through the social network.
The study, done by Convertro, an AOL company, spans 500 million clicks, 15 million conversions and 3 billion impressions — more than $1 billion of attributed revenue during Q1. It finds that while organic Facebook posts are great for mid-funnel awareness, paid posts are becoming more effective for conversions.
Among Facebook posts, paid beat out organic 13 percent to 9 percent for bottom-of-the-funnel decisions.
“Social media is a conversation”
How many times have you heard this phrase? If you’ve dabbled with social media long enough and been hearing from a lot of social media marketing gurus, a phrase something like the above would not be unfamiliar to you.
In fact, a lot of gurus would preach that social media is a platform to connect with your audiences and build relationships with them. “Be accessilble,” they would say. “Solicit feedback from your fans through polls and open ended questions. Check your social media sites often, including outside of normal work hours if possible. Make sure that your fans know how to reach you.”
These same gurus may also be preaching that in order to be successful on Facebook, you would need to have wacky and creative ideas. As such, a lot of brands and organizatons have been be ridiculously misled to run campaigns on social media that lack clear objectives, let alone driving new businesses.
Have you ever done research or shopped for a product online and then realize that the ads on your computer start to talk to you about what you were interested in? This is retargeting in action.
Facebook retargeting is a kind of behavioral ad retargeting which allows businesses to gather browsing data from their website users in order to create targeted Facebook ads when those same users login to the Facebook platform. This is revolutionary for small businesses (SMBs) looking to drive targeted traffic to their site and convert more site visitors.
Even as the cost of Facebook advertising rises, is the social network’s offering the most efficient for marketers? According to a new study by Neustar, Facebook advertising in Q2 beat out other avenues (network, portal and exchange) in terms of reach efficiency and average cost.
Neustar’s study shows that Facebook’s cost efficiency in Q2 indexed 70 percent cheaper than the industry average. It was also the only channel that out-performed the indexed average for reach efficiency, beating ad portals by 286 percent.
Two of the major reasons for Facebook advertising’s popularity? Mobile and video. Rob Gatto, Neustar’s Senior Vice President of Media and Advertising, feels that we’ve only started to see video’s potential:
One interesting thing I see in video is that most advertisers are content to buy it simply with age and gender as an overlay. After all, that’s typical of how you buy television.
But in the digital world, you can buy video with a far deeper level of audience, attribution and behavior. Advertisers aren’t yet taking advantage of that.
There are all sorts of opportunities for sequential messaging with video: creative that moves a customer along at different touchpoints, aligned to the buyer journey. We already do a lot of these things in the display world, but haven’t yet duplicated them into video.
Norwegian Facebook Preferred Marketing Developer Fanbooster announced recently that the company has launched a Facebook ads platform. Fanbooster started four years ago as an app creator, but now the company is evolving to support advertising.
Fanbooster aims to make Facebook advertising simpler and more time-efficient. Through the company’s ad offerings, advertisers can create and save target groups, split campaigns and utilize Facebook’s complex targeting and bidding motels with just one button.
Fanbooster’s Vice President of Marketing, Alex Grimstad, described the new vision of the company to Inside Facebook:
We spend a lot of time working with Facebook ads, for both ourselves and for our clients. We’ve seen that the Boost Post button is really powerful as it gives advertisers a really quick way to get your messages out there. Meanwhile there are some really great targeting options in Power Editor and Ads Manager that you don’t get by hitting the Boost Post button. With the launch of the Fanbooster ads platform, our ambition is to reinvent the Boost Post button, and we call it One-Click Promotion. It’s as easy as boosting a post and equal to setting up an advanced campaign. The best from both worlds.