Over the last five years, a number of industries and consumer verticals have found success with Facebook advertising. From home services to mobile app downloads and consumer finance, many direct-response advertisers have achieved significant returns from their Facebook ad campaigns.
Several consumer verticals are on the cusp of breakout success with Facebook advertising. They have been given a shot in the arm by Facebook in recent months with the social network’s addition of several new performance-oriented ad solutions. Those solutions are helping turn Facebook into a hybrid engagement plus performance ad solution.
Retail, online gambling and automotive are all poised for breakout success in Facebook advertising. Let’s take a closer look at each and some of the new ad solutions Facebook provides companies in these verticals.
As organic reach becomes harder to come by, with more and more competition for News Feed space, many brands know that native posts need to be combined with advertising.
Moontoast, a Facebook Preferred Marketing Developer, published an infographic showing how rich media on Facebook can drive awareness, voting and lead generation. The infographic notes that for roughly every $1 spent on Facebook ads, a company receives 4,000 impressions on an ad. While Facebook might be better for conversions than Twitter, the 140-character service is much better for clickthrough rate.
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As smart marketers know, the Facebook ad ecosystem is constantly changing and evolving.
Kevin Bobowski, the VP of Marketing at Facebook Preferred Marketing Developer Offerpop, recently discussed with Inside Facebook how advertisers and marketers are grasping that organic reach on Facebook is diminishing, and how Google’s cessation of Wildfire signaled that the social ad landscape has changed drastically.
Inside Facebook: What does the news of Google and Wildfire mean for Facebook marketers?
Kevin Bobowski: I think for the Facebook ecosystem, with this news around Wildfire, one of the interesting data points that has come up since the Wildfire news, is the diminishing reach of Facebook. Brands are more and more reliant on paid advertising to reach fans and acquire audiences on Facebook. I think because that’s happening, it’s just really clear to us, when we talk to our customers and major brands, that they’re diversifying from Facebook as they think about a social media presence.
As the Shorty Awards (Monday, April 7), draw closer, one of the most competitive categories is the race for the best Facebook ad campaign of the year. Among the nominees are Pepsi, the University of Phoenix, Game of Thrones and Nissan.
Greg Galant, Co-Founder and Executive Producer of the Shorty Awards, described to Inside Facebook the importance of Facebook in today’s marketing ecosystem:
Brands are embracing new platforms such as Vine and Instagram video at a rate that’d put even a tech-savvy teenager to shame. We’re excited to honor the best in the industry and to have Unmetric return as our partner recognizing the top Facebook campaigns from 2013. Facebook has become a vital part in every marketing strategy and this year’s finalists showed that innovation and originality still exist on the decade-old platform.
One of the most popular ad formats on Facebook right now is the call to action button, which allows a brand to make its pitch on Facebook accompanied by a button the user can click on or tap. On mobile, it can lead a user back into that brand’s mobile app to make a purchase or convert some kind of action, and on desktop, it can direct the user to sign up for more information or to shop.
Hussein Fazal, Founder of Facebook Strategic Preferred Marketing Developer AdParlor, spoke with Inside Facebook about how advertisers are utilizing call to action buttons for success. AdParlor published a study of these call to action buttons for three advertisers, comparing the clickthrough rate, cost per acquisition and conversion rates on ads that had the button compared ads without.
A fashion and apparel brand ran both kinds of ads. Those without the call to action had a CTR of 0.424 percent, compared to a CTR of 0.783 percent for the ad with the Sign Up button. The call to action also led to a cost per acquisition roughly that was roughly half of the CPA for the ad without the call to action.
Fazal took some time to talk about this study and how the call to action buttons have helped Facebook advertisers.
Recently, popular food delivery service Eat24 penned a breakup letter to Facebook, threatening to close its presence on the social network because of all the constant News Feed algorithm changes, fake likes and a push for advertising.
This complaint has been uttered or screamed by brand managers all over the world. It needs to stop.
Facebook is, at the end of the day, a business. It is not a charity. Companies — who are generally in the business of making money — complaining about a business doing what it can to make money feels self-centered.
One of the most popular ad formats on Facebook right now involves the call to action button, prompting a user to sign up or buy now, among other commands. Rob Kischuk of PerfectPost noticed that Listen Now, previously available only for mobile, has been added to the API for desktop ads. He notes this could mean Facebook is preparing to have the Listen Now button be available as a desktop ad option.
Kischuk described to Inside Facebook what he’s been seeing, in terms of calls to action:
“CALL” is still present but still doesn’t work. They have also added MISSED_CALL and CALL_NOW to the API, which is curious. I speculated before that they were working on click-to-call like Twitter, but it almost seems like they might be building more phone capabilities into the feed.
Facebook announced Tuesday that it is expanding the capabilities of Lookalike Audiences, allowing advertisers to create lookalikes based on people who visit their websites, use their mobile apps, or are connected to their Facebook pages.
Before, advertisers were only able to create Lookalike Audiences based on information like email addresses, phone numbers and user IDs.
In beta, Shopify used Lookalike Audiences to target website visitors and saw a 2x decrease in cost per lead.
Facebook ads have long been scrutinized by major advertisers for a lack of control over frequency capping and a lack of accurate traffic estimates. In an effort to answer these concerns, Facebook has started beta testing a new campaign type that focusses specifically on those points.
The new reach & frequency campaign type from Facebook is the newest campaign structure created for major advertisers who wish to more accurately plan and predict the delivery, cost and reach of brand campaigns.
Facebook recently made a change to Power Editor, moving some of the Partner Categories into sections called More Demographics and Behaviors. Hat tip to Andrea Warner of Marketer’s Braintrust for sending this along to Inside Facebook.