Yes, it’s true that advertising on Facebook — especially during the holiday season — is getting very costly. But Facebook Marketing Partner Kenshoo found that with that increased cost comes an increase in return on investment.
Kenshoo noted in a recent blog post that the aggregate average CPM of Facebook ads increased 7x, comparing Nov. 2013 to Nov. 2014. But that also comes with a 5x lift in ROI in that same time period.
Facebook’s retargeting offerings, such as Custom Audiences and mobile app ads, have given a huge boost to the gaming and retail advertising sectors. Through retargeting, game developers have been able to gain installs and re-engage lapsed players, while retailers have been able to target users who stopped somewhere along the conversion funnel.
So what’s the next frontier for this kind of advertising? According to AdRoll, a Facebook Exchange partner, it’s the B2B sector.
AdRoll’s President and CMO, Adam Berke, talked with Inside Facebook about how B2B is the next big vertical for retargeting:
Generally, retargeting is known to be focused around retail, travel and classifieds, but one of our biggest verticals is actually B2B and technology. Those businesses use us because it’s very hard to find B2B decision makers and CIO types and people who are making those types of buying decisions for their companies. Once they find it, that data is really valuable. Once they identify their audience, whether it’s a SAAS product or a free trial or a freemium model, that has been a really big growth area for us. They’re starting to figure out ways to use mobile, also.
More advertisers are discovering Facebook’s complex ad models, such as retargeting via Facebook Exchange and Website Custom Audiences. How effective can these techniques be? A new study by AdRoll, a Facebook Exchange partner, showed that by using both FBX and Website Custom Audiences, the CPM of News Feed ad impressions on mobile was 57 percent lower than desktop, generating a 10 percent higher click-through rate. It led to a 61 percent lower cost-per-click for News Feed ads on mobile compared to desktop.
The study took into account more than 800 million impressions from 215 AdRoll clients running retargeting campaigns on mobile and desktop.
Social advertising is a rapidly changing enterprise. As the pendulum swings from data to creative (and back), Boost Media balances both to handle the creative for Facebook and other social ads for major companies such as Zynga, Geico, Home Shopping Network and Microsoft.
Boost Media also recently partnered with Facebook Preferred Marketing Developer Marin Software. The company’s Vice President of Marketing and Business Development, Erik Ford, chatted with Inside Facebook about the ever-changing Facebook ad landscape.
Inside Facebook: What are some advertising trends you’ve been noticing recently on Facebook?
Erik Ford: Advertisers are becoming a lot more comfortable with the Facebook ad platform. I think that’s because of a couple main reasons. One, the advancement, maturity and the robustness of the platform. You’ve got the right integrations with (Facebook) Exchange going on now. You’ve got the right API calls available to give advertisers the data that they need and that they’re looking for. Just from the metrics that they need and the support they need, to target the right audience and measure it — they’re there.
Though Facebook’s ad revenue continues to grow, a recent development could make the social network’s ad model even more enticing to retailers. Last month, Facebook added some capabilities to its Custom Audiences product, allowing marketers to target users who had taken certain actions on their website, such as adding an item to a their cart, but not converting.
Among beta testers of this technology, JackThreads saw an 8x return on ad spend. Custom Audiences has another major fan in Facebook Preferred Marketing Developer Marin Software. The company recently published a white paper, explaining how Custom Audiences can help businesses convert customers via smart Facebook advertising. Marin Software Senior Marketing Manager Dan Morris talked with Inside Facebook about how this can change the game for advertisers.
As advertisers and marketers draw up their post-holiday plans, Facebook Preferred Marketing Developer Marin Software shared a comprehensive whitepaper outlining four key trends for 2014.
Marin pointed out that marketers have really embraced News Feed, as opposed to sidebar, for native advertising, and that users are on mobile now more than ever. Marin found that users are much more likely to buy from brands they’ve had previous social engagements with. Lastly, Marin feels that marketers should be wiser about switching up their creatives on Facebook to prevent showing users the same ads over and over.
Facebook is looking to cut into Twitter’s market share in terms of interaction during television shows. The social network has adopted hashtags and opened up its data cache to media channels in an effort to get more people posting on Facebook as they watch their favorite programs.
A new study by Facebook Preferred Marketing Developer Optimal and Civolution shows just how significant the Facebook second-screen experience is, especially when it comes to advertising.
Google has decided to rejoin Facebook Exchange, the company announced in a blog post Friday. Google’s DoubleClick Bid Manager will become part of the FBX network, allowing its ad partners to deliver retargeted ads on the social network based on web browsing history.
Facebook on Tuesday announced a major update to Custom Audiences that would allow marketers to target ads to people who have visited the company’s website or used the mobile app.
Facebook notes that this is rolling out globally over the next couple months.
Facebook Preferred Marketing Developer Kenshoo unveiled a technology Monday that forecasts return on investment goals and automatically adjusts ad campaigns to meet those benchmarks.
Kenshoo Halogen Technology gives marketers insight and visibility into the future performance of ad campaigns. Armed with that knowledge, advertisers can find untapped market potential and make better-informed decisions about how to optimize an ad strategy.