Facebook went public promising to change the way brand marketers connect with consumers; it’s now winning over Wall Street as a performance marketing company.
A year ago, Facebook offered advertising products focused almost solely on driving awareness and building brand affinity. Post IPO, Facebook has changed its tune. With all eyes on the company’s long-term revenue strategy, Facebook has found that performance-driven advertising is a better way to make money than simply selling “brand engagement.”
To meet the demands of performance marketers – most importantly, ROI, conversion, and measurability – Facebook has unleashed sweeping changes to its platform. It has revamped campaign creation and management, and offers new creative options, mobile advertising capabilitie, and targeting tools.
Facebook’s ad product overhaul has already begun to pay off.
With a 55% year-on-year increase in revenue in Q2 2013 – 12% higher than analysts’ expectations – Facebook is rapidly growing ad spend. What exactly did Facebook do to so dramatically grow ad revenues this year? Here are three new Facebook ad tactics that wowed Wall Street:
Unpublished Page Posts ads show up within the newsfeeds of targeted audiences, but don’t necessarily show up on the marketer’s own Page timeline. With click-through rates 20-40 times greater than right-side ads, Unpublished Page Post ads deliver return-on-ad spend 97% greater than right-side ads, according to Facebook.
Said another way, marketers can now target their existing leads and customers on Facebook using email addresses and phone numbers stored in their CRM databases. Custom Audiences lets marketers measure performance throughout the purchase funnel – from lead, to sale, to lifetime value. A hit among performance marketers, use of Custom Audiences doubled in Q2 2013 compared to Q1.
Facebook may still be a good place for brands to build affinity, but it’s increasingly a top choice among performance marketers to drive sales, acquire customers and generate revenues. Google has made hundreds of billions of dollars from performance marketing. Why not Facebook, too?