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Facebook Advertising Increases Revenue 177%
Beyond the "Like," social media advertising presents ripe opportunities to increase revenue for a direct response marketer.
A leading high-end camera equipment site had a strong presence regionally but wanted to create more awareness about its company and its services nationwide as well as increase sales from the area of regional concentration. It turned to WebMetro to devise a direct response campaign for increasing its audience and revenue.
With photography gaining in popularity among enthusiasts and social networks enhancing targeting abilities for online marketers, WebMetro saw an opportunity to use Facebook advertising to help the company reach its goals. The advertiser was already a very social brand, constantly sharing information about camera equipment, encouraging its audience to share photos, and interacting enthusiastically with Facebook fans on a consistent basis.
To achieve the camera equipment company’s goals, WebMetro would take a 2-prong approach and create one campaign to drive fans and another campaign to drive revenue.
Driving Fans and Awareness
The first campaign targeted people interested in photography, including people who liked relevant interest group pages, such as:
- Nature photography
- Sports photography
- Wedding photography
The ads created were developed in alignment with the segment targeted. For example, ad copy for those interested in sports photography was specific to the group targeted: “Do you like sports photography? Click ‘Like’ now!”
Results of Campaign 1
After 3 months of implementing the fan-generation campaign, the advertiser’s fan base increased 347%. The cost per fan (CPF) was $0.24, almost 80% lower than the average CPF reported by Webtrends.
Driving Revenue
While the camera equipment provider has a national audience, it has a high regional concentration. This presented a ripe opportunity to create a geo-targeted campaign from highly segmented local targeting focusing on direct response sale conversions. Many of the same people were targeted as the first campaign for driving fans, with the exception that this campaign had a concentrated geo focus.
The main difference in this campaign was the creative development. The ads used to drive revenue presented a commercial message. The ad copy advertised:
- Camera equipment provider's services
- Available product lines
- Promotion codes
Results of Campaign 2
Two months after the campaign launched, revenue tracked from Facebooki increased 177%. In two more months, revenue from Facebook increased another 31%.
Facebook, the most visited website and the most searched term in 2010ii, offers excellent targeting methods for advertisers and serves more than 50 billion ad impressions per monthiii. The social network is a powerful advertising platform for reaching targeted segments. When coordinated as an integrated part of an advertiser’s online marketing mix, the results of Facebook advertising campaigns such as these can make a significant business impact.
References iTracked as the referring URL
iiHitwise, “Facebook was the top search term in 2010 for second straight year,” December 29, 2010
iiiMashable, “Facebook Now Serving More Than 50 Billion Banner Ads Per Month,” May 12, 2010
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