Page post ads in Facebook’s News Feed are becoming the ad unit of choice for marketers on the social network, mainly due to their return on investment performance, according to a study released Monday by Facebook advertising platform Nanigans.
Cost Per Click
The various types of sponsored stories offered by Facebook require more financial investment on the part of advertisers, but also deliver far better results, according to the findings of a new report by Salesforce.com, released Tuesday.
Just how powerful is Facebook’s News Feed? One of the alpha testers of Facebook Exchange retargeted News Feed ads, Nanigans, said advertising on the site’s primary feature increased return on investment by 197 percent, compared with the right sidebar.
Facebook’s transition to a mobile-first company continued with great speed during the first quarter of 2013, as the social network reported that 30 percent of its total advertising revenue during the period came from mobile, up from 23 percent in the fourth quarter of 2012.
Spruce Media, a Facebook Strategic Preferred Marketing Developer, examined the state of Facebook advertising in the first quarter of 2013, and reported mostly positive results, in advance of the social network’s first-quarter earnings call Wednesday afternoon.
Three years ago, you could drastically reduce your cost per click by just running a ton of ads. The mainstream pay-per-click vendors, experienced with Google, applied their same techniques to Facebook — multiplying tons of ad combos by headlines, images, and body copy. While that technique was positioned as smart optimization, it was really spamming the system with thousands and thousands of terrible ads. If a general message against a particular audience wasn’t effective, making 10,000 variants of the same thing wouldn’t matter.
One of the first Facebook Exchange partners, AdRoll, studied 468 advertisers that ran standard Web targeting and FBX campaigns during the last six months of 2012 and found areas where each type of campaign held an advantage.
We call it MAA (not MMA or AMA) — and it stands for Metrics > Analysis > Action. The idea is this: Sort to find the top performers, ignoring the rest. Don’t mass-multiply; spend a few minutes per day, not three hours once per month. Amplify what’s working by using different forms of social retargeting via sponsored stories, sponsored results, and custom audience targeting. Don’t waste time making reports, unless you’re in that type of company — focus on insights and actions. Software is nice, but expert action is better. Software can’t mask missing competency. Repeat these cycles quickly — you can get them down to minutes and multiple cycles per day.