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FaceBook Ads Model Reviewed

Thursday, February 12, 2009
We've been dabbling with Facebook Ads of late. They've been on our radar for a while; we did look at them last year when they first launched, so I thought I'd revisit and see how it all hangs together.

I've been running some Test Ads – I like to test things out thoroughly (i.e. learn from any mistakes) before I advise/recommend Reseo clients on a certain course of action. It can save a lot of red faced embarrassment.

FaceBook Ads are amazingly powerful in some ways and really (really) annoying in others. There's so much potential in there, but Facebook has a long way to go before I'll take it seriously (or recommend it as an advertising platform).

Here's the thing, (and I may be wrong here – it happens on occasion), but perhaps for the first time in history, online social media advertising allows Advertisers to target their advertising on demography and interest.

You can target your FaceBook Ads directly at "Facebookers" who fit your target market. It's scary, but Facebook probably knows more about you and your interests than your own mother! And they use that information to help Advertisers like me, target you.

Here's an example showing how you can target your Ads to your "perfect" customer profile:

FaceBook Ad Targeting


The combinations are unlimited!

So far so good.

Where Facebook Ads fall down is the reporting on conversions and ROI. Until they sort this out, steer clear.

Quick caveat, if you've configured your analytics properly - you can measure FaceBook Ad ROI, but you'd need to a lot of manual work to measure how much you're spending on FaceBook clicks (or impressions) vs. how much revenue you're generating from those clicks.

It's logical to compare FaceBook Ad's to Google AdWords. If you've ever spent any time setting up and using conversion tracking in Google AdWords you'll know how powerful that can be.

Here are the results from my three day FaceBook Advertising experiment.

Facebook Ad Results


There's a nice pretty graph, lots of impressions, abysmal click through rates (but that might have something more to do with the quality of my Ad!), and a total spend of USD$25.38.

The problem/question I have is how many sales did I make from the clicks (or spend)? Google AdWords tells me this sort of information almost instantly, but FaceBook Ad’s do not. Quite simply, FaceBook Ads don’t offer conversion tracking, so I have no idea; I'm flying around in the dark.

To sum up, I guess it's fair to say that the platform is still quite immature, and at this stage we can't recommend it as a serious Advertising option until they at least get a conversion tracking feature.

By Chris Thomas, GM Reseo
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