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How to Double the Effectiveness of a Facebook Ad

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Categories: Facebook, Social Media Marketing

Advertising on Facebook is its largest revenue source and was estimated to have reached $2 billion in 2010.How to Double the Effectiveness of a Facebook Ad

Google’s search advertising revenue in 2010 amounted to more than $25 billion and is its main income stream and at this stage dwarfs Facebook’s advertising earnings.

What Google is watching closely though, is the growth in Facebook’s advertising (which increased by 158% to the $2 billion mark, up from only $775 million in 2009) and that is why Google+ is so important in the search giants future plans as it accelerates its socialization of  its on-line properties and demographic data capture.

Facebook has what Google aspires to and that is the detailed demographic information that people enter into Facebook when they sign up to become a user.

Facebook Introduces Zip Code Targeted Ads

Facebook recently has upped the ante in the battle for more accurate and targeted advertising and is now providing  Zip codes for its self-serve ads as announced by Insidefacebook.com.

Facebook announces Zip code targeted ads

Previously it could only offer cities, states and countries.

This Zip code targeting will make Facebook marketing much more attractive to local businesses that are not after people from outside their local area or suburb and would not want to wasted advertising budgets on attracting the wrong audience.

This local targeting is only available at this stage in the US.

Zip Code Targeting Doubles Click Through Rates

According to early testing of this new Facebook advertising feature by Blinq Media this feature has doubled CTR (Click Through Rates) by delivering a much more refined and relevant message to a local audience.

It appears according to Luis Caballero (the CTO of Blinq Media)  that this is achieved by zip code targeting increasing the frequency of the Facebook ads that allows a single user to see it 3-4 times instead of only one or two.

Businesses that could benefit are local restaurants, bars, fashion stores and multi-store city based brands that could advertise to those in their immediate area without having to waste advertising on an audience that isn’t relevant.

This will make Facebook marketing much more attractive and effective for the local stores and businesses and will broaden the advertising revenue base of Facebook.

Social media marketing will continue to evolve and provide more sophisticated services as the battle for the on-line advertising continues to heat up.

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  • http://twitter.com/socialtoppings Social Toppings

    Another plus for Facebook. The more advances in advertising with social networks continue to impress me. Many of my clients have jumped to Facebook advertising and are seeing significant improvements from previous Google Adwords campaigns. Is there any reason small biz would still prefer Google Adwords?

  • Anonymous

    Now all businesses have spread on different social sites and facebook is famous one for that. But now as google plus launched , facebook users move towards it due to advanced features of it. So this facebook new zip code facility may be affect on business positively and there is one new miramax application has arrived in facebook by which people can see the movie also. And so by short movie creation about business , one can also increase their  business.
    manual social bookmarking

  • http://twitter.com/himachhag hima chhag

    Very true”the battle for the on-line advertising continues to heat up.”

    When you can accurately target your audience, the benefit is larger.
    Waiting for more and more to come up.

  • http://ideagirlmedia.com/ Keri at Idea Girl Media

    Jeff, good stuff! Thanks for using my Facebook icon — Very cool to see it here used by such an awesome pro!! :)

  • Pingback: 5 Fabulous Facebook Infographics | Jeffbullas's Blog | Teachers TechTeachers Tech

  • http://www.facebook.com/profile.php?id=83503372 Justin Smith

    Great post! Makes perfect sense. I do a lot of local targeting with excellent CTR’s but have also noticed higher CPA, so while the visitor may be higher quality and in closer proximity to to the local business, it may cost a bit more per click.

  • Rob Willox

    Being able to refine targeting and segment your messaging down to zipcode level together with the other targeting options can only make your marketing more profitable and provide valuable insights if proper analysis and tracking is included.

    Just had a look at it and, as usual, not yet available as an option in the UK. Not sure exactly how zipcodes cover the US landscape but it might be more cumbersome in UK as postcodes are 2-part, the first part a large area with the second further segmenting the area.

    In itself a good option but some areas (ours) have more than 50 sub-segments (some only having a few houses/streets). Hopefully, when it does come to the UK it will allow the larger area to be chosen as a global selector with further refinement available if required.