A few caveats about online advertising:
Be patient. It can take a day to 6 months to get your online advertising to be profitable.
Not every advertising channel will work for everyone. I’ve spent $100,000+ on Google advertising and only made back $25,000. If you do the math, that’s not good
When you do find a channel that’s profitable, spend as much as you can, while you can. When I was advertising on a newsletter I found I was spending $750 a week to sponsor and making $1,500 back within 2 weeks. That’s an awesome time to ROI. I didn’t sponsor more than twice a month since I didn’t want to annoy their readers. A friend yelled at me to do more. I moved to four times a month and the ROI stayed at the same rate. I realized there’s a lot of noise online so
it’s okay to advertise
Advertising decays. Over time you need to refresh your advertising if it’s working. At AppSumo we had a full-time person just refreshing our ads a few times a day. It’s a bit easier with news feed ads vs right-side ads.
Profit is all that matters. Ignore people who claim they get some really high Click-through-rate CTR (% of people that actually click their ad). If you are spending but not making money, stop.
Look for free marketing opportunities first. In How to make $1,000 a month business course I personally encourage people NOT to spend on ads until they’ve exhausted other marketing activities. It’s too easy to spend a lot on ads without great results.
via How to spend your first $100 in Facebook Ads | Noah Kagan’s Okdork.com.
A rich infographic on how targeting on Facebook works:
How Ad Targeting Works on Facebook – WSJ.com.
Tools Now Allow Advertisers to Target Users Based on Spending Habits in Brick and Mortar Stores
via Facebook Uses Data to Charm Advertisers – WSJ.com.
We knew this was where Facebook was going with this when they partnered with Datalogix. Oh, and don’t feel like you should give Facebook all the credit for this. This model was most likely inspired by ad agencies or big brands that knew this was possible. There are already top 100 sites doing this sort of stuff.
Facebook’s Vice President Of Ads Product Marketing Brian Boland tells me “This has never been done at this scale, to link digital exposure to in-store sales for anyone with a CRM system.” Previously, Facebook had been privately testing the measurement tool with a select few advertisers, but now it’s available to any advertiser that buys directly from Facebook’s managed sales team.
via Facebook’s New Offline Sales Measurement Trick Could Make Ad Clicks Obsolete | TechCrunch.
It breaks down exactly what FBX is, for confused marketers.
One amazing fact: Facebook believes it serves 28% of all display advertising on the web.
via Facebook’s FBX Ad Sales Pitch Deck – Business Insider.
Wait, aren’t Sponsored Stories and other FB ads the perfect fit for this? I guess not because FB had to go to TV to broadcast their message!
The company is taking the Airplane spot it showed at Thursday’s launch event and airing it as a TV commercial, starting with today’s Final Four men’s college basketball games on CBS. Additional spots — all produced by ad firm Wieden + Kennedy, will come in the coming weeks, Facebook said.
via Facebook Begins Big Push to Bring Mobile Users “Home” – Ina Fried – Mobile – AllThingsD.
Great headline and discussion of what’s going on with monetization at Facebook. If it’s one thing I can give FB, it’s that they are really transparent with the way they play their cards. I think the biggest strategic implication here is– if native monetization didn’t work for FB, then how can it work for any other property at scale?
While Facebook clearly isn’t abandoning social ads, its adoption of more tried-and-true online-ad models has the advantage of being more easily explained to CMOs, most of whom never grasped the significance of accruing fans and “likes,” according to Colin Sutton, social-media director at OMD
via Has Facebook Lost Faith in Social Ads? | Digital – Advertising Age.
Facebook is really bringing their A game:
Facebook has begun passing keyword data to websites that receive referral traffic from search queries that originate on the social network, allowing sites to more accurately track where visitors are coming from.
via Publishers can now see Graph Search keywords that led to their sites.
I think this is misguided– the primary benefit to these partnerships is to be able to measure the effectiveness of seeing Facebook ads by connecting views to purchase data. These firms, through partnerships can access purchase information and tie it back to individual accounts. Targeting may be in the works too but it’s not the primary driver here:
In shaping its targeted advertising strategy, it is no longer relying solely on what Facebook users reveal about themselves. Instead, it is tapping into outside sources of data to learn even more about them — and to sell ads that are more finely targeted to them. Facebook says that this way, marketers will be able to reach the right audience for the right products, and consumers will see advertisements that are, as the company calls it, “relevant” to them.
via Facebook Expands Targeted Advertising Through Outside Data Sources – NYTimes.com.