Promoting a business on Facebook is producing increasingly impressive results, according to a new study carried out by internet analysis specialists Nanigans. The results suggest that, on average, the social media giant now delivers a 152% return on investment for advertisers, with conversions consistently rising over the course of the past year.
Drawing on analysis of over 150 billion impressions and 100 retailers, the report makes extensive recommendations for social media marketing strategists. It shows that click through rates on Facebook ads have risen by 375% in the past year. Interestingly, it also indicates that ads in news feed – the fastest growing source of revenue for Facebook – have a significantly higher click through rate than traditional ones but actually offer a lower return on investment.
The report will be welcomed by many businesses working out how to divide their advertising budgets in the run up to Christmas. It suggests that Facebook is an increasingly safe bet and that tried and tested approaches to using it are the best way to go. It also suggests increasing overall consumer interest in using Facebook to find shopping leads, which means it is worth investing in all aspects of Facebook presence, including customer engagement that may not have the potential to translate directly into sales. At this time of year, seasonal-themed competitions can also be a good bet for many retailers, encouraging existing page fans to share and expand the business reach.
The improvement in Facebook conversions may be related to an overall increases in public trust in internet marketing, as indicated in surveys by Nielsen and Google published last month. The upturn in confidence in the online marketplace is likely to be a significant factor in shaping sales this holiday season, and now is the time for businesses to start plotting out their seasonal advertising campaigns. This may mean the simple replacement of existing ads when it comes to search engines; however, with social media it is useful to look at the campaign from a wider perspective because of the gains that can be made from integrating ads with other areas of Facebook interaction. Gains can also be made by carefully coordinating social media marketing with website development to maximize conversion potential. They key thing to remember is the importance of click to call, with the presence of phone numbers in ads perhaps the single most important factor in securing follow-through.
For help with developing your seasonal marketing strategy, call Xcellimark.
