Category Archives: Facebook

Can Twitter Work as an Ad Medium?

On its first day as a public company Twitter was valued at £19bn. Following its successful stock market launch, Twitter now needs to prove to investors that it can effectively grow its revenue; one medium through which it would do this is advertising.

Source: www.mediatel.co.uk

There are 230 million users globally on Twitter, 76% of which access Twitter on a mobile device. Therefore advertisers are extremely interested in utilising mobile ads. In response to this, Twitter is introducing a new set of targeting capabilities for mobile devices.  Now all advertisers can segment audiences on iOS and Android by operating system version, specific device, and WiFi connectivity. This helps advertisers reach the users most important to them, for example mobile app developers can target users with the necessary operating systems, prompting a new download or re-engagement through an app card. This is something that has previously been successfully operated by Facebook, the main rival of Twitter.

Telco companies can now also promote loyalty and rewards to users on their specific devices. All marketers can focus campaigns on users with device models that are indicative of demographics which align to their campaign goals.

Furthermore there is now the self-serve ad platform to be used by small businesses across the UK. Anyone with a Twitter account and a credit card can now buy promoted tweets and promote accounts; targeted through keywords or interests and followers.

In addition to this, the new segmentation reporting gives advertisers better insights in to the OS versions and specific devices of users engaging with their general campaigns.

Source: www.theguardian.com

So will Twitter be an effective advertising platform? Despite the many advantages of using advertising on social media, the juxtaposed dangers were suitably demonstrated last month on Facebook, when a video showing a human decapitation appeared without warning. This was a disaster for advertisers sharing this content on the same page. Clearly, regulation of content is a difficult and controversial issue to tackle. Twitter has its own pitfalls for companies, for example companies are being warned about Twitter ‘trolls’; who can harm the company’s reputation with unprovoked criticism.

Now that images are allowed, ads appearing in Twitter are much more prominent. This does change the experience for the user. As Twitter pushes for more advertising there is the potential for a backlash from users as they are inundated with adverts. Plans were revealed to widen its advertising to target “every business on the planet”. Although this is brilliant news for small/medium businesses, this may not sit well with some users. Therefore a fine balance needs to be reached to avoid the over-saturation of adverts, on Twitter feeds, driving its users away.

Advertising with Facebook has Grown Year on Year

Facebook

Source: Mashable

Advertising with Facebook has grown year on year. Therefore, it was a great surprise when General Motors pulled its $10 million budget from Facebook. Following this news, there has been a flurry of debates regarding whether or not Facebook is a worthwhile advertising and marketing investment. It also begs the question whether social media as a whole is a good investment.

Facebook is the world’s biggest ever media property, with 901 million active users and over 500 million daily logins. These statistics show the astronomical reach and frequency which Facebook has to offer, with a large amount of users being young, wealthy and well educated. Also, content such as statuses, posts and tweets can now be tagged and their conversions assessed. Monitoring systems such as Klout offer the service to determine how a social media platform is performing against its competitors and whether it has produced a significant ROI.

For the UK alone, Facebook has 30,945,100 users, 49.63% of the country’s population. In contrast to LinkedIn, which reaches just 13.42% of the UK population. Facebook users in the UK have increased by 1.52% in the last 6 months and by 2.30% in the last 3 months. The network along with LinkedIn and Twitter is constantly growing and the emergence of Google+, Pinterest and Quora has created exciting advertising and marketing opportunities.

A recent study showed that click through rates for Facebook display ads were up 18% when compared to 2011. The table below highlights the most popular and successful advertising categories. Further to this, in April 2012, 7% of all visits to a website came from Facebook, making Facebook the second biggest source of traffic in the UK, after Google.

CTR League

Source: TBG Digital

It must be remembered that Facebook offers more than advertising alone, with a number of fan pages, advertisers can promote their brands through social media. 500 hours are spent on Facebook in the UK every month, with the average session lasting 22 minutes. One Facebook fan to a company’s fan page means an additional 20 visits to the website each year.

With all of this in mind, it can be questioned whether or not General Motors made the right decision pulling their Facebook budget. With users ever increasing and strong results being achieved, Facebook along with Twitter and LinkedIn are proven as a successful marketing tools and ones which will continue to provide positive results.


Facebook Sees 18.5% Click Through Increases

Click-through rates for Facebook ads in the UK, USA, France, Germany and Canada increased by 18.5% between the second and third quarter of 2011 (TBG Digital).

Growth has been driven by an increase in fan acquisition and application install campaigns, as well as improved effectiveness from ad formats such as Sponsored Stories.

It has been discovered that Facebook is earning more per impression whilst the Cost per Click rates have fallen for advertisers. Cost-per-click rates fell over the third quarter by 10.8%, while cost-per-thousand impressions increased by 7.1%.

Brand advertising is also on the increase, up 6.7% from the second quarter of 2010, and accounts for just over half of all Facebook advertising.

Retail brands had the highest share of impressions at 27% for the quarter, followed by food and drink brands, with a 14% share.

The entertainment sector has seen the steepest growth from the last quarter, growing its share of total impressions to 8% from under 1%.

Simon Mansell, chief executive of TBG Digital said “With true global scale and massive levels of user engagement, Facebook should be the first choice for any brand campaign.”

“The success of Facebook PPC advertising can be attributed to the diverse targeting options available such as demographics, user interests and geo-location. However, Facebook PPC should not be considered as an alternative to PPC on other platforms like Google AdWords. Google PPC targets users based on what they are searching for, whist Facebook PPC will target based on who they are.” Four Opinion– Director of Search Marketing

Facebook set to be biggest display advertiser online

The leading social network, Facebook, is reportedly to become the world’s largest online display advertiser by revenue during 2011, surpassing both Google and Yahoo.

Forecasters are predicting a 95% increase in Facebook’s advertising revenues this year, jumping from $1.8bn to $3.5bn. Meanwhile, Google’s display networks, which include YouTube and DoubleClick, are expected to rise from $2bn to only $2.6 by the end of 2011.

Although this is very impressive growth from Facebook, these figures are based on only image and video advertising shown on a standard web page. Excluded from these statistics is Google’s revenue from search advertising, which produces considerably larger revenues each year ($25.4bn in 2010 and $8.3bn in Q1 2011 alone).

Facebook’s advertising revenues remain a fraction of Google’s search business, however, the social network’s 500m user base is impossible to ignore and and enabled them to lift their revenues rapidly.

A statement from Ian Maude, internet analyst at Ender said “Facebook is changing the dynamics, bringing new advertisers into the market as Google did in 2002 with search,”

It’s not known how long Facebook will retain this kind of advertising growth. With Google now setting display advertising on YouTube and its third party sites as one of its top growth priorities, Facebook is likely to be challenged  heavily as  the ‘top dog’ in online display advertising.

Four’s Opinion: This is not only a revenue victory for Facebook on image based advertising; Facebook has forced rivals like Google to make significant changes to their advertising game.

Google responded recently by creating a new search algorithm called “Social Search” which allows Google Search users to share and recommend search results on their search results. This applies to both paid and natural search listings.

It will be interesting to see how this competition will change the Web and Social networking as we know them.