The Future of Advertising on Facebook
Going into this year’s Affiliate Summit West, I wasn’t looking towards anything spectacular and didn’t have any big aspirations. I was excited about being on the “Advertising on Facebook” panel, but had no idea how beneficial it would end up being.
During the first day of the summit while walking through the meet market, I was surprised to see that Facebook had their own booth, along with plenty of staff members from the company. Not only were these members from Facebook, but they were actual team members from the Ads department and they actually understood the frustrations we have been experiencing with the Facebook approval process and their advertising platform.
I met with almost all of the members from the company, but spent the most time with Alex Shultz who is the head Marketing Exec at Facebook and also has a deep background in affiliate marketing. While in the meet market we ended up talking for about an hour and it was great to hear about the changes to come.
The next day Alex Shultz, Dan Murray, Myself and Shoemoney were on the “Advertising on Facebook” panel. The room filled up quickly and ended up with standing room only. In addition to answering plenty of Q&A from the audience, the following points were discussed.
– Shoemoney briefly talked about how he is using Facebook Ads for local advertising and driving leads for car dealerships and dentists in his area. This method of advertising is extremely new and lucrative because barely anyone is doing this.
– There is a misconception by some that Facebook has a “college crowd”, but this is so far from the truth. There are currently over 150 million members on Facebook and some of the fastest growing demographics are over the age of 25.
– Facebook members from NON-US countries are one of it’s fastest growing areas, with Italy recently leading the way. Foreign clicks are cheaper along with less saturated.
– When setting up a new campaign, make sure to test multiple images and text headlines. Alex mentioned that the TEXT headlines of ads actually factor more in the overall CTR than the image used.
– While other social networks may start at .10 or .25 per click, it is possible to receive clicks in the .02 to .04 range. Price factoring comes down to a click through rate and cpm process. Continually tweaking and improving your ad campaigns for a better click rate, will result in lower click costs.
– Cloaking links is not fooling anyone at Facebook. They are aware of “black hat” methods and are in the process of taking actions against these advertisers and accounts.
– When Alex was asked what offers he would run on Facebook to make money, he said “dating” and “weight loss” offers are always in the top performers.
Overall. the “Advertising on Facebook” panel went well. More than anything else, I was thrilled to see Facebook made the effort to attend and put themselves out there to get real user experience stories and feedback. They know the ball is now in their court and they have made mistakes in the past, but are working to improve the system. There is no easy fix and this will take time, but improvements are on the way.
I know Alex and the Facebook team will be looking over the comments in response to this blog post, so please feel free to leave any comments, complaints or improvements you feel would be useful.
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