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  #1  
Old May 21, 2012, 12:39 PM
Dien Rice Dien Rice is offline
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Join Date: Aug 2006
Posts: 2,705
Default Does Facebook advertising "work"?

I just read this interesting article... About a guy who spent 160 Euros (just over $200 US dollars) to market his packaging business on Facebook, and got...

...2 clicks to his website!

(That's a cost of about $100 per click.)

I haven't advertised on Facebook myself, but know a couple other people who have also advertised, who told me they got poor results (one runs an online game).

Have you heard of any success stories with paid marketing on Facebook? (That is, paying for ads...)

I suspect the Facebook advertising model will never be as successful, for people who actually track the results, as the Google "Adwords" model (and other similar, search engine-based advertising)...

Oh, here's the article I referred to earlier...

I put my family business on Facebook. Here’s what happened.
http://www.thejournal.ie/readme/colu...what-happened/

Best wishes,

Dien

Last edited by Dien Rice : June 5, 2012 at 07:48 PM.
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  #2  
Old May 21, 2012, 02:52 PM
Phil Phil is offline
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Join Date: Sep 2006
Posts: 1,857
Default Re: Does Facebook advertising "work"?

Dien,

Lots to Learn on Just About ''Everything'' these Days...

Too Much Sometimes to ''Absorb'' and Use so Why Not Just Give it Away!

I Find Simply By Playing Around With Focused KeyWORDS, Questions, How To's, Tutorials, Help, Advice, Research Says, Experts on, Expertise about, Case Studies, Etc. Etc...

Because of The Current Growing Over-Load of Information...

An {Extremely Hot Money Making Trend} is RIPE for Development in & on Very Specialized subjects and Topics! ...

Piles of Good ol' Monies & Revenues Are and Will Continue to be Made Extremely Nicely Throughout our LifeTimes...

Some Have Become Very SuccessFull throughout the Web Doing it in the Last Few Years and it's Only Getting Bigger and Of Course Much More Competitive...

But Still Nicely Untapped...

Because of The Current Growing Over-Load of Information...

Some like Yourself are Probably well Aware, others, Maybe Not So Much...

I'm sure Sure it'll Be [Hitting] SowPubs, in the Very Near Future...

Definitely other Engines Are Well into It! ...

The FREE Global BRAIN is Truly Never Ending...

Quick Example(s) regarding FACEBOOK related ''ADVERTISING''...
https://www.google.com/search?q=Face...ient=firefox-a
https://www.google.com/search?q=Face...ient=firefox-a
https://www.google.com/search?q=Face...ient=firefox-a

Phil

Last edited by Phil : May 21, 2012 at 03:15 PM. Reason: additional info...
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  #3  
Old May 21, 2012, 04:15 PM
Jimbo13 Jimbo13 is offline
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Join Date: May 2012
Posts: 2
Default Re: Does Facebook advertising "work"?

Hello there Dien

I am new to this forum; more of a learner than an educator when it comes to what is discussed here.

I was just reading this in the copywriting section on WF that one of the guys put up.

**Okay scrap that, I can't post links as I have not written 10 times yet.**

FB click through rate averages at 0.05 or 1 in 2000 for ads.

Maybe that is why GM pulled their advertising?

Dan
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  #4  
Old May 21, 2012, 04:34 PM
Dien Rice Dien Rice is offline
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Join Date: Aug 2006
Posts: 2,705
Default Re: Does Facebook advertising "work"?

Quote:
Originally Posted by Jimbo13 View Post
Hello there Dien

I am new to this forum; more of a learner than an educator when it comes to what is discussed here.

I was just reading this in the copywriting section on WF that one of the guys put up.

**Okay scrap that, I can't post links as I have not written 10 times yet.**

FB click through rate averages at 0.05 or 1 in 2000 for ads.

Maybe that is why GM pulled their advertising?
Hi Dan,

First, sorry about the "link" thing... I just removed the restriction, so there should be no problem posting links now... (I put the restriction up to battle spam - but we seem to have a pretty good handle on it nowadays!)

Thanks for that... Wow, a .05% clickthrough rate is awful!

It may be that Facebook advertising may work for some things... Like things that people would be "fans" of (such as sports teams)... However, for smaller businesses, or more "mundane" businesses, perhaps it just doesn't work...

To my understanding, it's also a less direct process. You have to create a Facebook page for your business... Your advertising gets people to "like" your business Facebook page. Only from your Facebook page, then, can people click through to your web page which is outside of Facebook.

For many people, getting people to go to your website is where the "money" is, since people can't order your product from within Facebook itself, only if they go outside of Facebook to your web page. Of course, of the people who "like" your Facebook page, only a tiny fraction will ever click on the link to go to your own website... That's my understanding of how it works, anyway...

Thanks for the further information...!

Best wishes,

Dien
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  #5  
Old May 21, 2012, 04:41 PM
Jimbo13 Jimbo13 is offline
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Posts: 2
Default Re: Does Facebook advertising "work"?

Thanks Dien

Here is the link to the page from Business Insider.

http://www.businessinsider.com/data-...#ixzz1vWL6BZGs

Keep up the good work on this forum Dien. I appreciate it.

Dan
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  #6  
Old May 21, 2012, 09:34 PM
Eva Eva is offline
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Join Date: Mar 2012
Location: 1 1/2 hr N. of Los Angeles
Posts: 83
Default Re: Does Facebook advertising "work"?

I gave up on Facebook years ago. I'm semi not so social and to spend a couple of hours on a daily basis in exchange for no return, forget it.

However, these days there are smarter ways to utilize FB and no, have not tried that. Advertising FB on your website is a must, getting likes and forcing people to like it in exchange for something of value to them, seems to work. Still, not my choice of spending time.

It's all a combination of everything though and having a biz fan page can't hurt.

Eva
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  #7  
Old May 22, 2012, 02:57 PM
Dien Rice Dien Rice is offline
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Default Re: Does Facebook advertising "work"?

Quote:
Originally Posted by Jimbo13 View Post
Thanks Dien

Here is the link to the page from Business Insider.

http://www.businessinsider.com/data-...#ixzz1vWL6BZGs

Keep up the good work on this forum Dien. I appreciate it.
Thanks Dan - that's a great article!

I also liked the graphic which was linked to in that article, too...

I could be wrong, but after reading this, and also Ankesh's post, I'm getting the "vibe" that Facebook may be good for "branding", but not really for "direct-response"-type advertising...

I'll ponder that further...

Best wishes,

Dien
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  #8  
Old May 22, 2012, 02:46 AM
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Ankesh Ankesh is offline
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Location: Mumbai, India
Posts: 689
Default Re: Does Facebook advertising "work"?

Most people don't advertise on Facebook correctly.

Facebook is good for 2 types of advertising.

1. To build a stronger bond with people who already know of you. If you are well known, you can run a campaign to get people to like / join your FB page. However, when you are unknown and you try to do this - you'll make losses. (Unless you turn scammy and trick people. Eg: Someone selling tennis shoes running an ad that says: Like if you like Roger Federer.)

2. To find people who like your competition. And let them know about you. Eg: if someone has liked Pizza Hut - and you show them your local pizza parlor ad - would you see a good conversion rate? Most likely - yes.

So Facebook works only if you are already popular. Or have competitors who are popular.

The second issue with Facebook is - people don't have a purchasing intent while they are on Facebook. On Google, people search for what they are looking for. On Facebook - people come across your ad before they want your product. Sometimes - this may be weeks before they need you - sometimes it could be months before they need you. Depending on your product life cycle.

Eg: If you sell beds on Facebook - and on average, people buy a new bed only once in 10 years - a 3 month campaign on Facebook is not going to increase your sales dramatically.

So you have to realize that while Google is like Yellow pages, Facebook is like radio advertising. People won't have buying intent. But it still works if you take a long term view and are smart with it.

I'm surprised to know that a wine seller and a game developer's ads on facebook bombed. Did they run an ad to get people to like their facebook pages? Or did they run the 2nd type of ads - showing your ad to people who like your competition - and get them to come visit your website?

My educated guess is that they may have run the first kind of an ad campaign - getting others to like their facebook pages - when they themselves weren't popular...
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  #9  
Old May 22, 2012, 01:42 PM
Dien Rice Dien Rice is offline
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Default Thanks Ankesh... That's an amazing post...!

Quote:
Originally Posted by Ankesh View Post
Most people don't advertise on Facebook correctly.

Facebook is good for 2 types of advertising.

1. To build a stronger bond with people who already know of you. If you are well known, you can run a campaign to get people to like / join your FB page. However, when you are unknown and you try to do this - you'll make losses. (Unless you turn scammy and trick people. Eg: Someone selling tennis shoes running an ad that says: Like if you like Roger Federer.)

2. To find people who like your competition. And let them know about you. Eg: if someone has liked Pizza Hut - and you show them your local pizza parlor ad - would you see a good conversion rate? Most likely - yes.

So Facebook works only if you are already popular. Or have competitors who are popular.

The second issue with Facebook is - people don't have a purchasing intent while they are on Facebook. On Google, people search for what they are looking for. On Facebook - people come across your ad before they want your product. Sometimes - this may be weeks before they need you - sometimes it could be months before they need you. Depending on your product life cycle.

Eg: If you sell beds on Facebook - and on average, people buy a new bed only once in 10 years - a 3 month campaign on Facebook is not going to increase your sales dramatically.

So you have to realize that while Google is like Yellow pages, Facebook is like radio advertising. People won't have buying intent. But it still works if you take a long term view and are smart with it.

I'm surprised to know that a wine seller and a game developer's ads on facebook bombed. Did they run an ad to get people to like their facebook pages? Or did they run the 2nd type of ads - showing your ad to people who like your competition - and get them to come visit your website?

My educated guess is that they may have run the first kind of an ad campaign - getting others to like their facebook pages - when they themselves weren't popular...
Thanks Ankesh!

That's a terrific post! I've never read this, about how Facebook marketing is quite "different" - and the different approach you need to take... (And also the specific type of business you need to be...)

I think the people I mentioned were treating it more like you would Google Adwords search-engine-based type advertising...

Thank you, Ankesh, for sharing your insights. It's truly inspirational...!

Best wishes,

Dien
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  #10  
Old May 22, 2012, 04:07 PM
Marshall George Marshall George is offline
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Join Date: May 2012
Posts: 3
Default Re: Does Facebook advertising "work"?

I have a different point of view.

In my opinion, Facebook is not as effective as radio advertising,
Why?

Because the cost per contact is far more expensive in Facebook,
than in the most popular and effective radio anywhere.

Let’s take the Southern California radio market for example...

You can advertise in KISS fm (number one or two in the SOCAL market all the time) Advertisements on this radio station are estimated to be $1,000 for a 30 second commercial,

(Note: Individual radio station rates are not readily available. Estimates are based on regional averages and may be very inaccurate.)

KISS fm can reach an incredible number of people. Arbitron latest report shows that an average of 4,014,300 people tuned in for at least five minutes each week.

This a minimum, most people listen to their favorite radio station more than 5 minutes each week.

That’s huge potential reach for a total of (for example) 12 ads x $1,000= $12,000 / 4,000,000 listeners

That’s 30 cents of dollar per contact!!

In my opinion, Facebook is NO radio advertising, not even close…

That’s why the IPO is tanking…GM bailed out already and stopped all Facebook ads, other companies are planning to do the same.

My two cents,

Marshall
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