Facebook advertising has taken a beating in the last, well…ever since it came to existence. But new data this week from several partners finally bears good news for Facebook advertisers: Facebook is outperforming Google in browsing ad clicks.
In the just three short months since Facebook’s real-time bidding system, Facebook Exchange , was introduced, its already earning businesses massive return on investment – between 4X and 16X ROI, to be exact. This is compared to other real-time bidding systems, including Google’s AdX.
If you’re not familiar with real-time bidding, here’s how it works: advertisers tap into users’ browsing habits and compete to deliver ads to users whose browsing history matches their marketing profile. TechCrunch explains:
Facebook Exchange ads allow businesses to retarget visitors to their websites when they next visit Facebook. For example, someone who checks out a pair of shoes on a clothing site but doesn’t end up buying could see ads encouraging them to buy those same shoes next time they’re on Facebook. Retargeting lets businesses reach potential customers who’ve shown purchase intent and have a much higher likelihood of conversion. This means advertisers may be willing to pay much higher prices than for standard ads.
Real-time bidding currently represents about 16% of the $12.6 billion U.S. market for display ads, but is predicted to capture 27% of the projected $18.9 billion market in 2015, according to researcher IDC.
Google has been retargeting ads for a while now, but it’s new to Facebook. In a matter of mere months, FBX ads are outperforming Google’s AdX ads, according to data from three companies picked to try out the new platform for the first time. Here’s what they report:
- AdRoll has seen a 16X ROI in FBX ads for its clients. Advertisers who used to get $10 for every $1 they spent are now making $16 for every dollar spent on FBX, AdRoll says.
- TellApart clients averaged a 6.65% CTR on Facebook Exchange ads compared to a 6.41% on Google’s AdX. All of TellApart’s clients using FBX experienced a 10-20X ROI on ad spend.
- Triggit saw 4X higher return on profit, 2.2X higher post-click conversion rates, 6.5X less cost per click-through order (CPA), and 18%-30% lift in FBX conversions compared to traditional ad exchanges.
What are your thoughts on Facebook Exchange? Do you plan on using it? Have you had the same sort of success? Let us know in the comments section below after you check out our picks for the Top Facebook Marketing News of the Week and upcoming Facebook Events, including how to win FREE tickets to Facebook Success Summit 2012.
Facebook Marketing News – Best of the Week
5 Ways to Increase Your Facebook Engagement, Social Media Examiner
What is it that makes some Facebook fan pages wildly successful with constant high engagement rates where the fans and their friends eat up the content like there’s no tomorrow… while other pages sit there dormant with hardly any activity, yet they produce great content, too? Here are five factors that contribute to exceptional engagement and measurable results. >>Read More
10 Ways Leading Brands Use Facebook Ingeniously For Their Marketing, Business2Community
Permission Marketing: Facebook’s Cash Cow and a Marketer’s Dream, Huffington Post
Five Ways Facebook’s iOS Update Saves Time for Marketers, iMediaConnection
Are Facebook apps a must-have feature for brands?, Smart Blogs
Facebook’s Open Graph: 5 things marketers must know, iMediaConnection
Facebook Marketing Bible, Inside Network
Facebook Best Practices
Top 10 Small Business Facebook Pages: 2012 Winners!, Social Media Examiner
10 Things Companies Should Never Do On Facebook, Social Bakers
New Facebook Features
Facebook Platform Updates: Targeting Posts & Ads, Simply Zesty
Other Facebook News
Instagram Has Grown Over 1000% Since Facebook Deal, Web Pro News
From Facebook Advanced
The Secret to Getting 10,000 Facebook Likes, Joel Bornzin
Facebook Marketing Intensive Workshop @ SMX East, from aimClear
October 1, 2012, New York City
From killer Facebook ads to essential organic community management tactics, this all-on intensive training will increase your confidence and ability to dominate the world’s largest social network like a true cutting-edge marketer. Seating is limited, so register now!
Facebook Success Summit 2012, from Social Media Examiner
October 2 – October 23, 2012, Online
This online conference features the world’s top Facebook marketing experts sharing their tips for helping your business quickly implement effective Facebook marketing strategies and tactics so you can gain more exposure, build a more loyal following and grow your business. Register early and get 50% off! Plus, win FREE tickets to Facebook Success Summit 2012.
Free Webinar: The Science of Facebook Marketing, HubSpot
October 4, 2012 @ 2 p.m. EST, Online
Interaction on Facebook is a science. In this webinar, HubSpot’s social media scientist, Dan Zarrella, will discuss the sociology of the Facebook community and the scientific way of leveraging marketing opportunities on Facebook. This webinar will cover:
- The behavior of demographic groups on Facebook
- The sociology of the Facebook community
- The difference between men and women’s interactions on Facebook
- Scientifically proven ways to get your content shared on Facebook
AllFacebook Marketing Conference, MediaBistro
December 4-5, 2012, New York City
Get an inside look at Facebook innovations and monetization issues impacting today’s top digital media and marketing experts. Packed with case studies and real-world perspectives, AllFacebook Marketing Conference offers attendees a deep analysis of the latest Facebook tools, apps, demographics, research and advertising trends. How are brands measuring ROI in the post-IPO Facebook? Are we entering an era of consolidation in the social media ad buying world? Register Early (before September 28) and SAVE with an Early Bird Discount!