Facebook advertising analysis  traffic news duiih

Scope and cost of paid advertising on Facebook

Before the entrance to the
stock market, Facebook and social media were practically synonymous, and social media was new and comprehensive advertising and marketing of the future opportunity. And it is still, but it seems less and less likely that Facebook dominates its category as Google (GOOG) has dominated the search and search-related advertising. Nobody needs more than one best-of-breed of search engine not consumers, not advertisers. But it is worth asking if a social networking site can meet the needs of all consumers and advertisers all the time. Surely there are many places of social media, and the most successful of them intelligently designed and programmed platforms created for a particular purpose, meeting a real need of the consumer.

The output of Facebook on the stock exchange had little brightness with a price of $38 per share.In a short time the titan of the social network has lost nearly half of its value, finishing with 50 million dollars in capital from shareholders.

Against this backdrop the deterioration, it is worthwhile to take a step back to reflect on one of the most existential questions about Facebook: is the work of the company ads?

Facebook began with a powerful idea, and a purpose clear. Harvard University students could publish images of themselves and a brief description of your interests so that other students of Harvard University could look up. It was dynamic, so its users was in the habit of posting frequent updates on their activities and the State. Like all the best concepts of the Web, who grew up without effort and organically, until all Boston students jumped, and then students everywhere wanted to their faces on Facebook. Facebook is approaching 1 billion active users. It's an infinite number of circles, sharing minutiae above all the mundane, and photos of their children. And that is quite incredible, as what is. But at some point, raised expectations that Facebook would become the last home page of the web, the center of activity online around the world. And that's not going to happen. You can simply not be everything for all people all the time.

The company appears to be going through a rather painful transition from desktop to mobile. So far Facebook on the stock exchange is a speculative investment but with lot of potential.

With nearly one billion users, Facebook is kneading the database user profile most complete in existence. This can provide an opportunity to harvest a large part of the advertising market worldwide, which currently stands at $500 billion a year.

Advertising and Facebook

Facebook strategy is based on the premise that "social" is the future of the online advertising business. It is the idea that the recommendations of friends and businesses alike will be more effective than traditional display advertising in driving consumer behavior.

A study between comScore and Facebook together, reveal the following important analyses on the
advertising on Facebook:

Yes, Facebook ads can work. However, there are different types of ads, and certain types work better for some sellers that others do. "Absolute Facebook ads can lead advertising effectiveness", but there is not enough data to generalize however, cone a very general statement can be said "Facebook work ads" or "Facebook ads don't work." It is simply more complex than that, and there are many variables in play, including the type of ad, as well as the color, location, and creative elements. This is a completely new platform. "There are some unique aspects to it, and we are still in the early days." This process will be played over the next couple of years "according to analysts."

"Exposed" fans and friends of fans, in fact, spend more. The study analyzed the behavior of purchase online and out of fans and friends of the Amazon, Best Buy, Target and Wal-Mart fans during the Christmas season shopping 2011. The researchers measured the purchase behavior costs by the population in general. Not surprisingly, the study found that "fans" of retailers, on average, spent much more in those stores that did the population in general (more than twice that in Amazon, Best Buy and Target, and almost more at Walmart). Much more impressive and to the point, however, is that the "friends of the fans", also often spend more (only 8% more in Amazon, but one astounding 51% more white and 104% more at Best Buy). That seems to be a clear, although modest, the valid

Virality is key 
Facebook advertising analysis

A crucial component of the value proposition of Facebook is the magnitude of the social network, which has nearly $ 1 billion users. Advertisers, can take advantage of fans of the brand to friends of fans, which means "Dios breeds them and they come together". For example, fans of a brand can be two times more likely to make a purchase, but friends of the fans can be 1.5 times more likely to do so. "Amplification" is the key dynamic here:

The idea behind the amplification is that fans reaches with brand messages can also serve as a conduit for exposure of the brand to friends within their respective social networks... Due to factors such as the extent of the fan, the message of the average mark of 1,000 marks on Facebook is capable of to offer a real 81 x expansion efforts are maximized. In practice, while organic viral, sometimes not reached this ideal scenario, marks are often able to duplicate the reach of their messages through friends of the fans page.

In the case of Starbucks, view fans and friends of fans showed elevations statistically significant incidence of the purchase at the store for each of the four weeks after exposure earned media, according to the study. This same latent effect was observed in the elevator of the incidence of purchase between fans to view and friends of fans of retailer Target.

After a month, fans who saw the messages about the brand showed 19% more likely to buy at Target than those who did not see the messages, while his friends were 27 per cent more favourable to buy at the store.

It is still early. Yet the study is in the process of
interpretation. "We are, literally, learning new things in each analysis according to the creators of the study." Similarly, with regard to marketing, social media, is still in its early days, and much more research is needed. Despite important recent advances in the measurement of social media, the collective understanding of this dynamic and emerging marketing channel is still in its early stages, the study concludes.

However with this report Facebook wants to counteract the survey from Reuters and Ipsos, who claimed that four of every five users of the social network do not buy products as a result of the publicity, and that 80% of users never bought anything after seeing it advertised in the social network.

The social network also wants to raise the image after General Motors, the largest automobile company in the world, decided to remove your Facebook advertising. The company maintains its web pages on Facebook as a service support and contact with consumers and not for advertising purposes.

The team of Facebook Marketing Tips

Facebook measurement equipment advised about what works and what not in the social network. According to specialists, there are six elements in advertising creativity and two of them are Visual: the focal point and the eye candy. The other four have to do with the message and respond to various elements, as if it's easy to know what the mark or if the advertiser makes to get the message that is intended to.

To analyze the ads, Facebook discovered that there are three important things in the memory of advertising: the image should have an obvious focal point, the brand has to be clear and the announcement has to fit with the brand personality. That Yes, many brands failed to take these aspects into account.

On the one hand, the focal point errors are quite common. In advertising formats on Facebook there is no much space for images or text, so many brands are betting on an image which includes interpretations of the product with a background "funky", which are intended to suggest movement, or anything else. The problem is that it is impossible to get users to remember the brand with these images.

Facebook advertising analysis
Ads must also make it very clear what you are promoting something that seems quite basic, but that not so much when take a look at the creative circulating on Facebook. And should not be forgotten that, to achieve an intention to purchase, there is only an element that really works reward the user. A reward that do not necessarily have to be something free, but that information, or even an emotion, also works.