With the holidays approaching, gift gifting is about to increase, significantly, and so are advertising costs on social networks. Social sharing can have big sales impact, especially on Facebook.
In fact, if last year’s is any indication, within a couple of weeks, costs for Facebook ads are about to rise 20%-40% versus the rest of the year on the primary spending metric – CPC (Cost Per Click).
How do you make Facebook ads work harder when costs are higher.
Here are 20 Facebook ad tips for the holiday season.
BE CLEAR ABOUT CONVERSION GOALS: Conversion means getting people to take the action you want. Do you want Facebook users to buy something on your site? More Likes on your Facebook page — knowing that Facebook fans tend to be valuable customers in the long run? Enter a sweepstakes or contest? RSVP to a Facebook event?
KNOW YOUR AUDIENCE: Use Facebook’s robust targeting options to focus on specific groups. The more specific your advertising segment, the more clicks your ad will get. The better the Click Through Rate, the more you save on Cost Per Click (CPC).
GET HIGHER CONVERSIONS TO SAVE ON CPC WITH HYPER-TARGETING: Start with a core, solid fan base first and engage them to get better ad conversions…without breaking the bank!
CREATE “CUSTOM AUDIENCES”: With the addition of the “custom audiences” feature, advertisers are reporting higher conversion rates. An auto company saw a 24x return using custom audiences in combination with Offers).
REACH MORE FANS THROUGH THE NEWS FEED: 60 percent of all users are visiting Facebook on their mobile phones and tablets. Facebook mobile ads earn up to 2.5X more than desktop-only ads according to a study from SocialCode
HAVE FANS SHARING WITH “LIKE” ADS” “Like Ads” work just how they sound. Viewers can “Like” you ad at the bottom. They do well when they appear in the right-hand column in addition to the News Feed.
GET MORE EYEBALL FROM YOUR AUDIENCE WITH PROMOTED POSTS: Promoted Posts work best with one audience: yours. Your fans already know you, trust you, and want to engage with you. Target Fans first becaue Promoted Post can a lot like spam, especially the sponsored story that is created with it. If your Promoted Post is reported as spam, it’ll be running a lot less.
MAKE COPY “SUCCINCT, FRIENDLY AND CONVERSATIONAL”: This is what Facebook recommends too. You have a headline of 25 character and body copy of 90 characters to do it.
CREATE HOLIDAY URGENCY: Put holiday clues in your copy and let people know whatever you’re offering has a limited time to take action
FOCUS ON KEYWORDS: Make use of the related words as close as possible. It will give you an edge against your competitors and rivals.
PUT IMPORTANT CONTEXT IN YOUR IMAGE OR VIDEO: You get one shot and one image or video to make a first impression. Put important copy in your image or video so you don’t waste it. Facebook has standards so don’t make the copy take up more than 20% of the image space.
PUT HOLIDAY IMAGERY IN YOUR AD: Why not create added relevance with images of the holiday that can boost relevance and time to act?
TEST MULTIPLE ADS: Even the smallest change can have a a impact on the click-through rate for your ad, so it’s best to create multiple versions and test. Facebook makes this process easy: Once an ad has been created, you have the option to “Create a Similar Ad” and simply swap in a new picture or text.
UPDATE YOUR WALL. NOT JUST YOUR ADS: Your ads are only as good as your Wall. If you spend a $100 on ads, but the last update on their fan page was a month ago, that’s not a smart spending strategy.
KNOW YOUR BIDDING OPTIONS: A CPC strategy is all about getting the biggest bang for the buck. With the Advanced Pricing feature in the Campaign and Budget window, you can then use the CPC (cost per click) model, as well as set your own bids for the CPM model.
KNOW THE BEST TIME TO RUN YOUR ADS: Make sure your updates are going out during peak hours – the time zone of your fans (for promoted & sponsored posts); he time zone of the demographic you are targeting (for display ads & sponsored posts)
RUN YOUR ADS FOR THE RIGHT AMOUNT OF TIME: Continually assess the ROI (Return on Investment) of your ad so that you can remove or revise it before it starts to really cost you. Watch your CTR and when it starts to dip, it is time to change your ad up
DRIVE PEOPLE TO AN OPTIMIZED LANDING PAGE OR DESTINATION: Make sure the ad directly leads to your website page that tells the potential customer what to do next.You will be throwing your money in a trash can if you do not have a converting landing page to direct the targeted Facebook traffic.
HAVE ONE CLEAR CALL TO ACTION: A comprehensible call to action must be established in the Facebook advertisement itself and also on the landing website page.
We want your business to be successful this holiday season and share some practical advice on how it can be.
Were these holiday tips on Facebook ads helpful? Will you be using any of them?
Has your business grown for the review and actions you take from social media metrics?
Social media metrics don’t have to be vanity metrics. Combined with the metrics that are most important with your business, they can provide insights into relationship that build revenue and build real value.
In our case studies, we’ve seen brands grow and money saved. While every business is different, there is a KPI scorecard that can developed for specific characteristics.
Did these reasons help guide you on how you should be spending your time? Are you ready to stop wasting time with social media metrics?
ROI (Return on Investment) is how much sales, profits or shareholder value is realized from money invested. Many consider it the final word because it’s the measurement that proves if growth is sustainable and how well a company is being managed.
Twitter filed its IPO. It’s now valued at $12.8 billion but has never made a profit. In fact, the filing shows Twitter has lost money every year, with current losses at $419 million.
How is it a company can continues to lose money, to the tune $419 million, yet be worth $12.8 billion?
Here’s what to consider for the ROI of the Twitter IPO.
WHAT ARE TWITTER’S GAINS?
REVENUES OF $583 MILLION: This year, Twitter is expected to have revenue of almost $600. In 2014, it is estimated at $950 million. Sales are increasing +63% versus year ago.
USERS ARE AT $218 MILLION: Twitter boasts 218 million monthly active users, but at 1/10 of Facebook users, for some advertisers, it isn’t a big enough.
TWITTER IS PERFECTLY ALIGNED WITH MOBILE GROWTH: Next year, more people are expected to access the internet from mobile devices than desktops. More than 75% of Twitter users accessed the site from their mobile phone this year. More than 65% of Twitter’s ad revenue is already mobile.
TWITTER IS A UTILITY: In every ROI calculation, there is a benefit that goes beyond the numbers to create faith in success. In this case, it is that Twitter is a utility. Twitter is surprisingly useful tool for solving problems, connecting with others that might not be possible otherwise and providing insights. Twitter says its mission is to: “Give everyone the power to create and share ideas and information instantly without barriers–a free and global conversation.”
WHERE DOES THE REVENUE COMES FROM? WHAT IS THE PROGNOSIS FOR GROWTH?
TWITTER REVENUE IS LARGELY IN A VARIETY OF AD PRODUCTS: About 85% of Twitter’s revenue comes from advertising. There are three main ways to advertise on Twitter: 1) By promoting a tweet that appears in people’s timelines, 2) promoting a whole account, or 3) promoting a trend. Data licensing is another revenue stream. Known as “firehose,” Twitter sells its public data, of about 500 million tweets each day.
ADS ARE NOT DISRUPTIVE: Anything that disrupts the user experience, especially on a social network might reduce user engagement. One of the advantages of Twitter for marketers over traditional display advertising is they have worked really hard to make sure that advertising on Twitter does not interrupt.
AD PRICING IS BASED ON RESULTS. A budget is usually set at the start of the Twitter campaign. It also has a “bidding” system in which advertisers compete with each other to have their content appear like other pay per click ads. But, in Twitter case, the per per click is a pay per retweet. Twitter tends to charge its advertisers according to the amount of interaction their content generates.
AD REVENUE IS MOSTLY U.S. BASED. Only 17% of ad revenue is outside the US. While you could look at this as the glass half full or half empty, Twitter has to do better in increasing global ad revenue.
IS WALL STREET’S IPO VALUATION ACCURATE?
VALUATION IS CONSERVATIVE VERSUS OTHER INTERNET IPO’s: When Google announced its IPO, the company was valued at $28 billion (around $35 billion in today’s dollars). Facebook had an IPO valuation of $104 billion.
IPO PRICE-TO-SALES RATIO IS HIGH: While Twitter’s offering is more conservative, the valuation is 28.6 times the company’s revenue over the last 12 months. Facebook’s $104 billion is only about 26 times the company’s revenue. Meanwhile, LinkedIn priced its IPO at 14.5 times its revenue. At current valuation, Twitter is overpriced.
WHAT CAN WE LEARN FROM OTHER SOCIAL IPO’S – FACEBOOK AND LINKEDIN: Early demand for Facebook did not materialize, The result was that Facebook shares failed to find a sustainable bid. Meanwhile, LinkedIn priced its offering at $4.3 billion, but the shares more than doubled on their first trading day. That 109% initial price pop gave LinkedIn a valuation of $8.9 billion.
Twitter is going to do well and it’s a good time for taking the company public. But don’t expect ROI right away. Twitter isn’t likely to generate a positive ROI for a couple of years, but it will.
Wall Street’s valuation could also be better balance with the realities of how companies make money.
Does this help show how a company with no profits can me worth so much? Now, you know my opinion, what’s yours on the ROI of the Twitter IPO?
While trust in our government and CEO’s is declining, our trust in social media continue to increase and rapidly according to the Edelman Trust Barometer.
“Technique and technology are important, but adding trust is the issue of the decade” – Tom Peters
If trust continues to be added to social media, why?
Here are 38 surprising facts about trust in social media.
92% of consumers say they trust earned media, such as social media, word of mouth, recommendation from friends and family, above all other forms of advertising (source: Webbed Feet)
90% of consumers trust peer recommendations (source: Socialnomics)
85% of customers expect businesses to active in social media (source: Vocus)
83% of consumers say it would be important to read user-generated content before making a decision about banking or other financial services (source: Bazaar Voice)
82% of consumers trust a company more if they are involved with social media (source: Forbes)
77% of online shoppers use reviews to make purchase decision (source: Vocus)
77% of people like getting exclusive offers that they can redeem via Facebook. We assign more value to products that are less available.
77% of consumers said they are more likely to buy from a company if the CEO uses social media (source: Forbes)
77% of B2C companies and 43 percent of B2B companies acquired customers from Facebook. (source: Business2Community)
76% of social media users post vacation photos to their social networks (source: Webbed Feet)
+75% increase occurred last year for trust in social media as it went from 8% to 14% as a trusted information source (source: Edelman Trust Barometer)
70% of global consumers say online consumer reviews are the second most trusted from of advertising (source: Webbed Feet)
69% of parents are “friends” with their children on social media (source: Socialnomics)
63% of people need to hear something three to five times before they believe it (souce: Edelman Trust Barometer)
57% of us respond that we “cannot trust” most people; 38% of us respond that we can trust most people (source: General Social Survey)
56 percent of customer tweets to companies are being ignored (source: Media Bistro)
56% of internet users do at least one of the creating or curating activities we studied and 32% of internet users do both creating and curating activities (source: Pew Internet)
55% of travelers “Liked”‘ Facebook pages specific to their destination (source: Webbed Feet)
55% more web visitors and 67% more leads come to companies that blog (source: Vocus)
53% of people on Twitter mention products and/or services in their tweets (source: Socialnomics
52% of Facebook users say their friends photos inspire their travel plans (source: Webbed Feet)
48% who use social media to research travel plans stuck with their original plan (source: Webbed Feet)
46% of adult internet users post original photos or videos online that they themselves have created. We call them creators (source: Pew Internet)
40% of personal travelers and 46% business travelers use social networking to share travel experience (source: Bazaar Voice)
38% trust government officials; down from 52% in 2011 (source: Edelman Trust Barometer)
43% trust CEO’s; down from 50% in 2011 (source: Edelman Trust Barometer)
41% of adult internet users take photos or videos that they have found online and repost them on sites designed for sharing images with many people. We call them curators.
40% of Facebook users in our sample made a friend request, but 63% received at least one request (source: Pew Internet)
34% of bloggers post opinions about products & brands (source: Socialnomics)
34% of marketers have generated leads using Twitter (source: Huffington Post)
33% who use social media to research travel plans changed their hotel (source: Webbed Feet)
26 percent of retweets are incited by a request to retweet (source: Huffington Post)
25% of search results for the World’s Top 20 largest brands are links to user-generated content (source: Socialnomics)
23 percent of Facebook’s users check their account 5 or more times daily. (source: Huffington Post)
14X is how often people on Facebook press the like button next to friends’ content, but they had their content “liked” an average of 20X (source: Pew Internet)
Only 14% trust advertisements (source: Socialnomics)
12% of users tagged a friend in a photo, but 35% were themselves tagged in a photo (source: Pew Internet)
6% higher average order value occurs for consumer packaged goods brand for visitors who read reviews than visitors who don’t read reviews.
Richard Edelman says consumers are looking to have participatory conversations so it is critical for brands to be involved. And to understand that trust occurs through the kinds of conversations you have, rather than what you put in the conversation. Listen for yourself.
Do these facts explain why social media is increasing in building trust? Do they give you ideas on how to have better conversations with your consumers? Are you planning on using social media to build trust for your brand?
Does this create a marketplace for doing business that generates revenue with measurable results? See for yourself. Here are 11 company case studies that prove the ROI of LinkedIn.
DOCUSIGN: the global standard for eSignitures, bought LinkedIn’s little-known sponsored InMail in bulk to target by geographic area, company size and job title for a 6-month lead-generation campaign. Sales rose +45% from 550 participants before the LinkedIn effort to more than 800 after.
EUREX: One of the leading derivative exchanges, wanted to drive broader connections, build relationship and create engagement. They updated their LinkedIn company page, posted relevant updates and use targeted LinkedIn display ads. Company page Followers grew from 500 to 13,000+ in 3 months; 81% of Followers engage exclusively on LinkedIn; LinkedIn Followers are 42% more likely to engage with EUREX and 43% more likely to recommend to a friend.
GOSHIDO: a software solution that makes is easier for people around the world to work together and collaborated, used LinkedIn to find seed capital for its own creation. This was done by identifying and leveraging connections who could be potential investors. Approximately $150,000 was raised.
HEWLETT PACKARD: is the first company to hit 1,000,000 Followers for a Company Page. They also set up a specific Discussion Group to attract small businesses that has 5,500+ members; 75% who actively engage in discussions and who are 2X more likely to recommend HP. Since a video tell more than 1,000 words, here’s the story.
NEAL SCHAFFER: a leader in helping businesses and professional strategically (and fellow MBA Faculty Member at Rutgers CMD), used Success Stories from LinkedIn. One day Neal saw a comment of one of his LinkedIn Groups, “Prove to me the ROI of social media.” He saw the person lived in the same county and he was connected to his brother on LinkedIn. He offered to meet the person for coffee. The connection led to two referrals that turned into clients within weeks.
POSTCARD MANIA: Joined LinkedIn groups for the various types of small businesses the company targets, and judiciously contributed to discussions and questions about marketing. The company uses relevant content like “8 Ways to Grow Your Local Business for FREE!” Each of the eight ways was a “snippet” with links to get more information, each of which collected the person’s contact information. Postcard Mania has generated 600 leads and $72,000, just from LinkedIn.
PENMAN PUBLIC RELATIONS: used LinkedIn to research a client’s planned launch of a high-end gaming system from their client, Hardcore Computer .Penman found that connecting with potential product users individually through LinkedIn offered more straightforward feedback and less “groupthink” than focus groups often deliver. They got more traffic to their website and more research responses (100′s more) at a fraction of the cost of focus group research.
PJA: An advertising and marketing agency in Boston, invested an hour a day targeting searches for such keywords as “VP of marketing,” specific ZIP codes and company names, to identify key contacts to call, InMail, email, or forward the agency’s portfolio. They tracked who looked at the company’s LinkedIn profile. They participated in discussions catering to CMO’s. It led to inquiries, agency pitches, and new accounts, including Guidewire and Chase.
SAMSUNG MOBILE: tries to attract upscale influencers who seek out the latest, leading-edge technologies in mobile devices. They post status updates on their LinkedIn Company Page and launch previews that leads to and API powered microsite with news about one of their latest mobile devices. They are able to target 20,000,000 LinkedIn members across 7 countries through their page, updates and mircosite; 33% says they are more likely to purchase from Samsung Mobile after following them on LinkedIn.
VIRAL SOLUTIONS: An automated relationship marketing company, has company partners actively participating in relevant LinkedIn Groups. They discovered that 50.7% of top sellers belonged to 30+ groups compared to only 11.5% of their counterparts. As a result, 58% of the company revenue now comes from LinkedIn Groups with an average deal size of $7500.
WILD APRICOT: Offers membership management and website development software for non-profits and associations. In 2010, Wild Apricot created a LinkedIn Company Page in mid-2010, They took advantage of the Company Pages recommendation feature, which allows members to post product and service reviews. They tested the recommendations on their website. They tested: 1) a recent user survey, 2) a link to an online software directory and 3) a link to the LinkedIn product reviews, along with LinkedIn’s logo. Showcasing LinkedIn recommendations on our home page raised conversions by 15%.