The Effectiveness of Facebook Ads

The Effectiveness of Facebook Ads

Since its start in 2004, Facebook has earned the opportunity to boast one of the largest user bases of any social media site, with over 1.3 billion active users. This translates to roughly one sixth of the world’s population checking or updating their Facebook pages at least once per month. This provides brands with a massive platform to reach a larger audience than they would have through traditional channels. Consider the facts:

  • Users spend more time on Facebook than any other platform. The average internet user spends 6 hours and 35 minutes each month browsing Facebook. This is nearly twice as much as time spent on Google and 3 times more than Yahoo or Microsoft.
  • Marketing ROI is booming on Facebook. Click-through rates on Facebook ads have skyrocketed 365 percent since Q4 2012. In 2013, the revenue per click – or ROI – increased 83 percent, making Facebook ads an incredibly cost-effective solution for brands. For retailers, ROI averages 152 percent.
  • More traffic to ecommerce stores comes from Facebook than any other social site. While it is helpful to market on Twitter, Google+, Pinterest, YouTube, and other platforms, Facebook drives 60 percent more traffic to online businesses than all other social media outlets.

What Makes Facebook Advertising So Effective?

With so many tangible benefits, it’s no wonder that brands continue to dedicate significant portions of their marketing budgets to Facebook advertising. These ads work due to consistent changes that Facebook makes to create a user-friendly site. The “newsfeed,” for instance, has experienced a massive transformation over the years, especially for mobile users. Instead of pushing ads into the margins, Facebook moved to incorporate ads seamlessly into the newsfeed, making them more valuable to users.

Furthermore, Facebook allows marketers to rotate through ads, which simplifies A/B ad testing. Since ad rotation yields higher CTR, brands enjoy lower acquisition costs. Approximately 70 percent of advertisers reported ROI 3 times or higher than their ad spending.

Facebook vs. Google

Facebook has taken a cue from the largest search engine and ad platform in the world. Just as Google AdWords appeals to consumer searches, Facebook continues to refine its ad algorithm to display the most relevant ads possible. Brands can target their audiences based on demographics, pages liked, and interests. Savvy brands even target consumers that “like” their competitors’ Facebook pages.

Such effective targeting makes Facebook an effective platform for major corporations and small start-ups alike. Small businesses particularly benefit from geo-targeting and reaching local users. As long as Facebook continues to refine its newsfeed and ad options, brands will be able to create better user experiences through targeted advertising.

Is your brand leveraging the world’s largest social network?

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Author Bio

Chris Caputo is the owner and operator of MetroMediaWorks, a digital development firm serving South Florida. He has a Bachelor’s degree in Management Information Systems and a Masters in Business Administration. His past jobs titles include Vice President, Technology for 944 Magazine and Director of Technology for Mirabel Technologies. He has over a decade of experience in internet space. Chris' passion is for finding a smart, faster, most cost effective way to get the job done. In his spare time, he is an avid runner, cyclist and coder.

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