Monthly Archive March 2014

Are Facebook Advertising Costs Killing Ad Spend?

There was a time when social ads represented brand new territory for advertisers. The opportunity to target users by interest, by social group or by commonalities promised higher engagement and better conversions. In a new article for “Adotas,” Ted Dhanik of engage:BDR argues that the cost of display advertising versus the cost of Facebook has a prohibitive gap.

Reliance on Traffic

For one, reliance on Facebook traffic has proven problematic. It’s difficult to tell the exact intentions of a user on Facebook. Is he online to check his notifications? Is she messaging a friend to schedule a meet up? These questions are difficult to answer on a case by case basis, so the messaging in your ad must be precisely tailored to fit the kind of user you want to reach. Even with demographic targeting, it can be difficult to compete with the noise of a social network as well. Reliance on this unreliable source of traffic is bad for a campaign that requires high ROI to succeed.

Better Methods

Facebook used to be the best method for advertising in multiple formats. It is conducive to viral video advertising as well as short form ads with or without creative. The rest of the Internet isn’t far behind. You can use on-demand banner advertising platforms to deliver rich-media ad formats that move and play sounds, banners that blink or flash, and text ads that blend seamlessly with content.

Now that ad formats have caught up, it’s hard to argue for more spend in social. Users can be unreliable, and the placements are no longer the premium of the Internet that they once were.

Why Marketers are Shifting Budgets Away from Facebook

A marketing budget is difficult to allocate appropriately. Do you risk opening a new account with a promising ad network, or try to refine your tried and true methods? For some marketers, that option is starting to disappear. Rising costs and other factors are pushing marketing money away from Facebook and shifting it to display advertising networks. If you’re concerned about the state of your campaign, read on for advice from Ted Dhanik, the CEO of engage:BDR.

Too Much Noise

Noise refers to the outside influences that potentially distract from your messaging. In the case of Facebook, a marketer must compete with photos, videos and intriguing links and user posts. There is the possibility of a disconnect occurring, where the user doesn’t fully receive your messaging and may opt out of the promotion. There is no way for you to verify why the user is logging into Facebook, or even if the user is authentic.

Real Estate isn’t Prime

The placements on Facebook used to bring a lot of value to advertisers seeking top positions on a budget. Facebook’s extensive system of metrics made it an even more attractive prospect, but they are no longer the only platform in the game. Independent banner advertising networks can offer the same quality placements on highly trafficked websites. Some networks have millions of unique page views spread between them, so you can divide by interest and target by demographic without your traffic suffering in the process.