Sunday, September 2, 2012

Facebook Advertising Guidelines

What is the strength of Facebook ? - According to me, it is the emotional connect , the stickiness factor; In other means of advertising, it is easy for an user to unhook to a ad or a platform easily. A user on a social media platform spends a lot of time in curating his account. The same problem Google+ is currently facing because to build one's page on Face book, one devotes a lot of effort and therefore incentives should be really high to do the transition from one platform to other platform, which is currently not in Google+ right now.

Without any fiddling, I still believe that Face book is the biggest  "Word of Mouth" generating machine. Face book Ads are different from Search Ads as they are more like " Contextual Advertising ", where ads can be specific to one's interests, location, demographics and ideas.

Facebook Ads Cost Models

When advertising on Facebook you can choose between two cost models:
  • CPC: Cost per click
  • CPM: Cost per thousand impressions (M = thousand in Latin)

 Does Facebook really increase Sales or it is just an Engagement Tool?

Let's take a look on some statistics for Facebook. This is research that is conducted by comScore on Facebook. According to comScore, Facebook saw a tremendous increase in purchasing, when users in the test group are exposed to promotional stuff on Face book

comScore Study of Impact of Social Media

In a crux, the report indicates that in the fourth week after being exposed to ads and promotions on Face book, the test's group is 40% higher than normal group.  

Is this is applicable for all the products ?................. 

Let us answer this question by means of Buying funnel and how Facebook can actually help which products and which customers. It is important to note here that any platform like Facebook, Google etc either works on Consumer Spending or Advertising. Keep this thing in mind

Let's look at the buying Funnel

From my point of view, online platform does two main things- Generate leads ( Lead Generation) and engage clients with brand (Client Engagement)

What purpose does Face book serve more properly- Lead generation or Client Engagement.- Let's explore it. When a user is entering any keyword on a Search Engine, he/she is actively searching for that thing- " How to; Why etc". He is looking for information but when the same user is using Facebook, he is looking for updates, friends, pictures- he is not looking for information on the products and it is quite similar to context advertising.

Even on Face book, ads are relevant to location, geography and demographics, which is much like Context Advertising. So the concept of contextual advertising is that needs of a user is implicit and therefore when he sees a pertinent advertising, he is reminded of the same. According to logic, this will lead to two actions- either he will pursue this ad or check back other offers, which he might have searched earlier. So Face book helps in reminding of your needs and it is important to note here that Click through Rate is minimum in the Face book.

So when you should advertise on Face book, it is a good tool when you are launching a campaign, promotions, Consumer traction, WOM & Consumer engagement. It is certainly not a lead generation tool on its own.

In the above example, Starbucks story worked because Starbucks tried to engage customers through promotions, which in turn  raised awareness,  created interest and finally consumer spending.


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