Last September, Facebook made a drastic change to its EdgeRank algorithm that significantly impacted the reach of page posts. The result of this change caused almost every organic post by a brand to be seen by fewer fans. Over the last few months, Facebook has rolled out several new advertising options, signaling that while Facebook will always be free for users (as they’ve continually promised), brands will have to pay to use the social network to communicate with their customers. Or, in other words, they’re going to have to advertise.
During ad:tech in San Francisco, several panelists with expertise in social advertising came together to discuss how to use retargeting to reach more customers and ultimately drive more conversions. Gretchen Fox, who previously worked with LiveNation and now runs her own consultancy, said that due to the shift in Facebook’s EdgeRank algorithm, it is absolutely necessary to engage in paid advertising in addition to creating organic social content. Fox outlined a basic framework for businesses to follow when creating targeting messaging, noting that the key tactic is to keep messaging consistent on both the advertisement and the landing page to which the advertisement leads. She also explained the importance of having a very clear call-to-action on that landing page to drive conversions.
Most consumers have seen an ad specifically targeted at them, though not all of them may realize it wasn’t just a coincidence. On many websites, AdRoll manages the serving of these retargeted advertisements. AdRoll President and Founder Adam Berke explained that while 98% of shoppers abandon their cart, a brand that uses retargeting on the standard web can increase their conversion rates by 50-100%. To leverage retargeting on Facebook, a business must gain access to the Facebook Ad Exchange (FBX) through one of several FBX partners, including AdRoll. In a study of 468 advertisers who ran FBX retargeting campaigns, AdRoll found that CPM costs were 82% lower and CPC costs were 70% lower than retargeting campaigns on the standard web. Interestingly enough the CTR was not nearly as strong for the FBX retargeting campaigns. Even so Berke advises it’s critical brands use retargeting on both FBX and the standard web, so they can reach as many potential customers as possible. In the same study, AdRoll found that retargeting campaigns aimed at both the standard web and FBX only reached the same unique users 8% of the time.
According to Nielsen, 90% of advertisers are using a free form of social media, but only 75% of them are willing to pay to use social media, and only 65% said they would pay more than what is currently allocated in their budget for social advertising. However, brands that do pay for social advertising almost always see an ROI. If you’re using advertising to drive conversions, you will find that retargeting is especially successful at getting customers to the bottom of the funnel.
As Berke said, retargeting is driving real performance on Facebook. Standard web retargeting ads have been able to capture intent for several years, but with FBX retargeting it’s now possible to do the same with Facebook. Retargeting on FBX will allow you to reach an entirely new segment of potential customers at lower CPM and CPC costs than standard web retargeting ads.
How many of you are running FBX Retargeting campaigns? Let us know in the comments below.
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