Is Facebook Advertising better than Display Advertising ?
This week I had a client who was developing his 2009 advertising budget and asked me about advertising on Facebook and if he should allocate budget. He said that the CPM rates are very low and that was his biggest attraction, not so much the platform. I thought it would be important to share our response to him and the path we took to provide a greater media buy for our client.
Facebook, as with most social network advertising has seen extremely low click through rates since the platforms were developed. This was something that Google actually predicted and have seen themselves. There’s evidence to show that people are more likely to click on advertising when they are actively looking for products and services or researching a particular topic such as recipe or a wine review.
The trouble with Facebook advertising in social networks is that people are actually socializing online. They are engaged with the content of their friends, learning about what they did or where they are and even chatting with them. Even though the advertising is located in the best real estate of the page it literally doesn’t get seen by the user.
There is no doubt that Facebook has a greater reach than Gourmet Ads. But how targeted is the advertising? I’m not talking about Geo Targeting because I know that Gourmet Ads would deliver the same result, but I am talking about reaching a real foodie or real wine connoisseur. Many of the sites that Gourmet Ads represents attract a specific foodie or wine connoisseur audience naturally. Now compare this to someone putting Food or Wine as an interest in their Facebook profile. Sure the campaign maybe targeted at that keyword but everyone likes Food and Wine!!!!!
So what did we recommend to our client instead of Facebook Advertising ?
- Create his own Facebook user profile and evangelize his product
I felt this was very important, because he can easily communicate to his audience or niche and talk about his product. I also recommended that he establish a Twitter account as well.
- Continue to brand advertise at key peak times with Gourmet Ads (Black Friday, Christmas etc)
Our client sells an expensive kitchen product which isn’t an emotional purchase buy. It’s something that you buy once every 10-15 years, so we believe that throughout the years that he run branding campaigns around the product to drive sales at these peak times.
- Undertake Behavioral Targeting Advertising
We are currently undertaking some research on what Behavioral Targeting options are available to him and how he can target potential customers.
- Become one of our remanent partners
We’ve suggested that he look at totally untargeted, wide reaching advertising campaigns which runs all the time. We’ve offered a low CPM rate with no guarantee on impressions. If the network sells out at a premium his advertising is put on hold.
I guess the final element of having a relationship with Gourmet Ads is that you have a relationship with Gourmet Ads. We’ll work with you directly to make sure your advertising campaign is working. We’ll help optimize it to reach the conversion rates you need to succeed online.