Facebook Newsfeed Ads: How To Optimize Your Spend
Overview: After studying more than 975 million Facebook ad impressions delivered across multiple retailers in December 2012 and January 2013, Nanigans, a Facebook advertising-software company, released a recent study that highlights how Facebook page post ads in the newsfeed drives purchases and return on investments for advertisers.
Impact for Consumers: As the NY Times recently reported, consumers being served ads based on their interests (determined by prior Web browsing) will now have an opportunity to opt out of these interest-based ad tracking. These fluid ad transparencies will alter consumer behavior to be more cognizant of brand advertisements making optimization even more important for advertisers. As the landscape continues to shift, below are Nanigan’s key findings and statistics for brands to consider while evaluating and planning ad spends on the social network to best optimize engagement:
- From a desktop-only perspective, page post ads in the newsfeed saw a click-through rate more than 46 times higher (1.87%) than marketplace ads in the sidebar (.04%) and the cost per click in the newsfeed ($.26) was less than one-third of Facebook marketplace ads ($.82).
- Newsfeed ads showed favorable returns on mobile platforms as well with page post ads on mobile generating 1.9 times higher click-through rates (3.38%) than page post ads on desktop (1.75%). Page post ads on mobile ($.14) also averaged 46% lower cost per clicks than on desktop ($.26).
Opportunity for Brands: As Facebook evolves its advertising options and communicates more transparently with its users, brands are presented with changing organic and paid opportunities to extend brand visibility and message reach. As brands continue to invest in advertising on Facebook moving forward, it’s important to be aware of the most efficient ad categories and methods – and to optimize messages and delivery on an ongoing basis. As part of this process, it’s also important to ensure brand’s earned and owned efforts complement paid programs on Facebook and across the marketing mix to maximize message reach and impact.
GetGlue Streamlines the Second Screen Experience
Overview: GetGlue, an entertainment focused, second screen social network, has completely revamped its iPhone app with new features to entice power users and provide a more customized content experience. In addition, the network has added “Promoted Entries” for brands looking to engage with their audience through second screen experiences. Finally, the biggest change is GetGlue’s narrowed focus. Now, users can only check in to movies, sports events and TV shows. It’s no longer possible to check into video games or other user created events and experiences. Other updates include a user experience overhaul, and a “Guide” feature that allows consumers to create their own custom watching schedule.
Impact on Consumers: Limiting users to the three most popular second screen entertainment categories (movies, sports events and TV shows) means that the suggested content they are shown can be closely tailored to their specific likes, depending on how they use GetGlue and what content they interact with. This creates a simplified user experience, allowing the most popular and appropriate content to be found easily. And when content is more relevant to more users, it creates more opportunities to engage on the second screen – and less time spent searching.
Opportunity for Brands: GetGlue’s recent shift to focus on movies, sports and TV aligns well with brand’s strategy for those involved in certain categories. The newly launched Promoted Entries presents an opportunity for brands to reach viewers and fans without a traditional TV commercial. With this feature, brands can create content as a video, photo or message to appear in targeted users’ “Guide” and “Feed” tabs. In terms of early metrics, GetGlue reported 15% of Tweets about Pepsi during the Super Bowl were driven by a promoted entry on GetGlue. This, combined with increased social media activity by consumers and brands around the Super Bowl (and the blackout) is another example that the trend of fans congregating on second screens during big events is continuing to grow. The second screen is an increasingly important area for brands to engage with their audience – and it’s only getting bigger and becoming more important each day.
- Twitter dominated the Super Bowl commercial mentions – half of all spots that aired during CBS’s game coverage mentioned a Twitter handle or call-to-action (26 of 52). Facebook was mentioned only four times, and Google+ wasn’t mentioned at all. This is a huge change from last year’s Super Bowl, when Twitter and Facebook both tied with only eight mentions out of a total of 59 national commercials.
- In an effort to accelerate the adoption of mobile search advertising, last week Google launched enhanced campaigns for AdWords. The upgrade will allow advertisers to target consumers more efficiently with ads based on context like location, device type, and time of the day, in a single campaign.
- American Express has extended its Twitter sync feature to enable customers who have synced their Amex account information with Twitter to also pay for certain products. Payments are made by tweeting a purchase hashtag, and retweeting the confirmation tweet from Amex within 15 minutes of receiving it. The product will then be shipped to the account billing address synced with Twitter, and payment taken from the synced Amex account.
- Rumor Mill: Twitter is reportedly readying its ad API to launch this quarter, which would enable brands to run ads on Twitter as easily as they do on Facebook. Twitter has not yet announced any changes to be made to the platform.