Click me
Transcribed

How Facebook Changed the Advertising World

HOW FACEBOOK CHANGED THE ADVERTISING WORLD The advertising game is not what it was 10 years ago - or even one year ago – and we can easily turn to Facebook as one of the biggest facilitators in ushering a whole new world of advertising. THE BACKGROUND AND THE EVOLUTION OF FACEBOOK ADVERTISING FACEBOOK LAUNCHES - FEBRUARY 4TH, 2008 There were no advertisements, which meant few means of monetizing or expanding their business. Despite several big investors, Facebook lost $3.63 million during the 2005 fiscal year. PARTNERSHIP WITH J.P. MORGAN CHASE - 2006 Facebook agreed to promote their credit card, prompting the first banner ads to be displayed to Facebook users. Facebook users earned reward points for doing things like paying their bills on time. OJPMorganChase MICROSOFT'S ADCENTER - AUGUST 22ND, 2006 SALE Microsoft Corporation and Facebook announced a deal, making Microsoft's adCenter the exclusive distributor of banner ads to Facebook's then 9,000,000 users. #1 These banner ads were among the first to begin tracking user behavior anonymously to improve placement and effectiveness. FACEBOOK BEACON - NOVEMBER 6TH, 2007 Collaboration with 44 partner websites. Beacon allowed external websites to send data to Facebook in order to target users for advertisements and to share their activities with their friends. Ш Ultimately, Mark Zuckerberg deemed Beacon "a mistake" and it was removed from Facebook in 2009 after a class action lawsuit. PAGES - NOVEMBER 2007 Pages gave businesses the opportunity to create a permanent advertising space for their product. Pages work much like a user profile, allowing a product/service the opportunity to directly engage with users. At first, users had the option to be a "fan" of the page, but since April 2010, they simply "liked" the page. ADVERTISING AND FACEBOOK TODAY FACEBOOK VS. BANNER ADVERTISEMENTS While Facebook may have once According to Facebook's policy, they no longer use this form of advertising. This is largely because these ads seldom work, reportedly having only a 0.04% chance of being clicked. ADWARE used banner ads, today if you find any on your Facebook page, they are most likely adware. 0.04% Typically, an internet user will see 1,707 banner ads/month SALE making them extremely ineffective. In fact, 34% of people don't trust banner ads. FACEBOOK ADS VS. GOOGLE ADS With 845 million active monthly users. Google Facebook ads serves up 1 trillion views/month. reaches reaches Google ads serves up 51% 90% 180 billion Improsslons/month. of internet users. of internet users. Google facebook So, while Google has a wider reach, Facebook still displays ads more frequently and to a more select market. Unlike Google, Facebook targets ads based on a user's membership, workplace, education and networks joined, making their ads highly individual-orientated. Membership Workplace Education Networks TARGETED ADVERTISING In April 2013, Facebook announced the option of using targeted ads, in which advertisers can set filters, choosing from 500 different options grouped under a few categories, to target extremely specific audiences. These major categories include: LOCATION AGE & BIRTHDAY INTERESTS An advert can target users from up to 25 different countries. Alternatively, if a single country is selected, an ad can target users by city. An incredibly broad category, interests are identified in multiple ways, including by things people have listed on their profiles or Ads can target users by their age groups, or alternatively, they can also display ads relevant to people who will have a birthday in the coming week. pages they have "liked". EDUCATION CONNECTIONS Targeting users from specific universities/colleges, users with specific majors, or users who will graduate in a specific year. This filter helps to not show the same ad to people who have interacted with your page within the last 30 days. Additionally, ads can also take advantage of the "friends of friends" option. SPONSORED STORIES This type of advertising is generated by friends actively engaging with a product. FRIENDS "Your brand" LIKE Jane, Joe and Dean like this Like Having clicked "like" on a particular page, the posts are then automatically generated to make it seem like a friend is actively endorsing the product. The advert that then appears on your newsfeed will display the name of the friend who likes the product. This greatly increases the likelihood of a user clicking on the ad or purchasing the product as the endorser is someone they know. HOW SMALL BUSINESSES CAN TAKE ADVANTAGE OF FACEB0OK 1 START BY GROWING YOUR NUMBERS You need to grow the Post frequent photos and updates, as these generate more interest in a page. number of users who like your product. Remember that you need a social media presence. After all, 91% of 56% of Facebook users have also clicked an advert to follow through to a retailer's webpage after seeing their advert on Facebook. marketers have noted that social media has generated web traffic for their products. TAKE ADVANTAGE OF GRAPH SEARCH As of early 2013, Facebook has been unrolling Graph Search in order to replace their more conventional search function. You can now search for things like "friends who like cycling" or "people who like Brand X". Focuses on four main aspects: People Places Businesses can also use the tool to track the demographics of their users, better shaping their advertisements and Photos Interests products to suit the people using them. S "Your brand" - 1,000,000,000 like this "Another brand" - 5,000,000 like this The benefit of this tool is, the more engaged a brand is with its Facebook audience, the more frequently it will show up in other searches. The greater the number of "Likes" a product or company has, the higher it will be displayed in search results. 3 THE FACEBOOK HASHTAG # Your Brand In June 2013, Facebook began enabling the hashtag, which originated from the Advertisers can use hashtags for Hashtags constitute keywords that correspond to real-time their products, making it easier for users to engage with and quickly link to the specific product events which make them easier domain of Twitter. to search for. "Your brand" We're launching a new product Don't miss it! #SuperBowl Advertisers can also do substantial business by preparing hashtags in advance for big events, like the SuperBowl or MTV Music Awards. COMPANIES WHO HAVE MADE THEIR FORTUNES ADVERTISING ON FACEBOOK zynga Zynga games' revenue is responsible for 12% of Facebook's bottom line. According to reports, Facebook made $3.71 billion in 2011, meaning that $500 million of that came from Zynga. ZYNGA GAMES A substantial portion of the money generated for both companies comes from the adverts which players actually display to their friends through their online gaming via the Facebook platform. Another successful gaming venture on Facebook, the King company has, as of June 2013, abandoned virtual advertising because they have become so successful thanks to how wide-spread their game has been on Facebook. Tung KING - CANDY CRUSH At present, they have 26 billion monthly game plays, and earn $2.4 million/day. Again, their major success comes from Facebook users doing most of their advertising for them. A home fragrance and luxury candle store in Maryland joined Facebook advertising in 2009. CANDES OFF MAIN Their page uses a combination of give-aways, coupons, discussions boards, de monstration videos and rapid replies to consumer questions in order to generate a broader sales base. CANDLES OFF MAIN Quickly, they've gained 2,400 Face book fans. 2,400 FANS Although their CEO admits that Facebook advertising is only responsible for driving 10% of their sales, the company gains valuable insight and suggestions from their online support base. This vintage-style women's clothing line has built an entirely sustainable business using only Facebook advertising. MISHKA 100% of the ir revenue comes through Facebook. MISHKA In just 6 months, they gained 1,000 unique buyers and 60 new customers purchasing clothing from them every week. 1,000 BUYERS The company chose to for go a conventional website and use only Facebook advertising. Their ads utilize Facebook's targeting features to find Fashion Interests new customers based on fashion and interests. This Arizona based company specializes in various types of bicycles STATE BICYCLE Their advertising campaign began by targeting A people who liked particular things, such as "Arcade Fire," "M83," and "Passion Pit". COMPANY They also targeted anyone who listed anything cycling related, as well as people who liked pages belonging to their competitors. STATE BICYCLE CO. Various contests on their page also generated interest in the brand. Facebook has been responsible for driving a х10 $500,000 Within 12 months, the company 12% of web traffic came experienced a growth of 10 times their previous customer base. to them via Facebook, annual increase for the company. CONCLUSION Facebook's advertising is constantly evolving, and no matter the size of your business, making use of the social media platform can only help your business succeed. H bluehost.com SOURCES http://mashable.com/2013/04/04/how-small-businesses-can-take-advanta ge-of facebooks-graph-search/ http://en.wikipedia.org/wiki/ Facebook http://visual.ly/ultimate-history-faocebook http://www.mae strosocialmedia.com/social-media-101/social-media-for business/facebookfor-business/the-history-of-advertising-on-facebook/ http://identitypr.com/blog/2013/08/why-smal-businesses-are-seeing-succ ess-with-facebook-ads/ http://www.1to 1media.com/weblog/2013/08/facebook_hashtags_enhanc e_digi.htmlt http://www.microsoft.com/en-us/news/press/2006/aug06/08-22msfac ebookpr.aspx http://en.wikipedia.org/wiki/ Facebook_Beacon http://blog.supermedia.com/how-small-businesses-can-take-advantage-oft http://en.wikipedia.org/wik/ Facebook_features#Platform he-facebook-hashtag/ http://mashable.com/2012/06/ 19/huge-facebook-banner-ad/ http://mashable.com/2012/02/01/how-fa cebook-ipo-makes-money/ https://digiday.com/publishers/5-unalarming-stats-about-banner-ads/ http://techcrunch.com/2013/06/12/king-quits-advertising-since-it-earns-so- much-on-candy-crush-purchases/ http://www.wordwatch.com/blog/google-adwords-tips/display-ads-on-g oogle-and-facebook-where-can-you-get-more-bang-for-your-buck/ https://www.facebook.com/help/ 162317430499238 https://www.facebook.com/help/131834970288134/ http://www.inc.com/ss/20-best-company-facebook-pagest 4 http://adage.com/article/digitalnext/facebook-commerce-a-history/228 732/ https://www.facebook.com/facebookforbusiness/success/miishka https://www.facebook.com/facebookforbusiness/success/state-bicycle COUPON

How Facebook Changed the Advertising World

shared by onebourbon on Nov 28
285 views
1 shares
0 comments
The following Infographic illustrates how the Facebook advertising program has evolved over the years.

Publisher


Tags

None.

Category

Social Media
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size