A big challenge for a lot of advertisers is determining how
allocate their online budgets. Should we advertise just on Twitter, Facebook,
Google or all of the above? These are all great questions and I don’t have a
specific answer. Every media platform has its own competitive advantages. In
order to effectively utilize any of their strengths, you need to first know the
goals for your campaign and then identify what your
key performance indicators
(KPI) will be. For example, are you looking to create buzz and brand awareness
and want a lot of engagement or do you want to increase sales for a particular
product and are more interested in high CTR’s? Once you have answered these
questions, you can determine which platform makes the most sense.

What I do know is, online advertising has been on the rise
and social advertising is no exception. Facebook is very aware of this
opportunity for growth and has been determined to capture as much of these ad
dollars as possible. This is especially the case with mobile advertising.
Facebook is the number 2 mobile ad publisher in the country and is expected to
take 13.2 perfect of all mobile ad revenues (source: eMarketer). Although they
are still dwarfed by Google, Facebook continues to chomp off more and more
market share.
To remain competitive, Facebook is constantly upgrading
their ad platform to strengthen user targeting. In fact, Facebook provides one
of the most targeted advertising opportunities today. How so? Let’s start with the fact that
Facebook has over 1 billion users, where in most cases, they know the member’s
age, sex, location, likes and interests.
We can now even take that a few steps further. Facebook
rolled out with something called “Custom Audiences” which gives brands the
ability to target their ads in conjunction with their offline customer lists.
This offline list can includes: email addresses, phone or Facebook user ID
list.
The most recent way Facebook has refined their ad targeting
is through their latest feature called “Partner Categories”. This feature
allows advertisers to more accurately pinpoint their ads to specific categories
of people based on their purchase history. To do this, Facebook has partnered
up with third party data from Axciom, Datalogix and Epsilon. Companies have
long used this type of targeting off of Facebook with great success, so this is
definitely a power move for Facebook. The depth of Facebook’s ad targeting is pretty amazing. If
you were to use Partner Categories in addition to some of Facebook’s other
targeting options, you have the opportunity to produce an ad with a great ROI.
Other advantages of Facebook advertising are…
You are allowed to set, monitor and update your daily budget
at any time. You can also choose to pay only when people click (CPC) or only when
people see your ad (CPM).
Facebook’s ad platform allows you to perform A/B testing for
your ads. You can run multiple versions of a given ad at once and analyze their
performance to determine which add generated the best results. When somebody
engages with your ad, all of their friends who also fall under your target
marketing will see that activity in their newsfeed. This not only increases
your ads reach, it also increases the chances of attracting new “likes” and
engagement. This is because of what we call “social proof” — the positive
influence created when someone finds out that others are doing something. This
influence is further intensified when it’s somebody that you know. The social
reach of Facebook ads can almost be as much as the reach you are actually
paying for.
One of the advantages
Google advertising has over Facebook
is that you are bidding on keywords people are actually searching for. With
Facebook advertising, you are bidding on a users “likes” and interests and they
may not be actively seeking out your product or service at that given time.
This is where lead nurturing plays a crucial role with the effectiveness of
your social media strategy. Once you get a new fan to “like” your page or opt
in to your email list, your job isn’t done. You need to continually provide
value to them to develop a long-term relationship, so when they need your
product or service, you are the one they turn to.
There is no perfect answer. Whether you choose to advertise
on Facebook or Google AdWords should be based on testing and the overall goals
for your campaign. The best approach is to continuously run A/B test ads within
each platform and then analyze your KPI’s. How much revenue did the clicks
generate? How many people saw your ad? What was the CTR? What was the amount of
engagement? All of these are potential KPI’s that you may attribute to the
failure or success of a given digital campaign. Remember, KPI’s should reflect
the particular stage of the purchase funnel your target customer is at!