For Facebook PPC, It’s 1848. Hitch Your Wagon!
Published: July 23, 2012
Author: David Rodnitzky
There’s gold in them thar channels.
Imagine being alive in 1848 and getting a tip that massive amounts of gold had been discovered in California. If you sold all of your possessions, bought a nice wagon, and rushed to California, you might have done pretty well. As Wikipedia notes:
Some of these “forty-eighters”, as the earliest gold-seekers were sometimes called, were able to collect large amounts of easily accessible gold—in some cases, thousands of dollars’ worth each day. Even ordinary prospectors averaged daily gold finds worth 10 to 15 times the daily wage of a laborer on the East Coast. A person could work for six months in the goldfields and find the equivalent of six years’ wages back home.
By 1849 – especially toward the end of the year – the opportunity for massive profits had diminished substantially. Again, from Wikipedia: “On average, half the gold-seekers made a modest profit, after all expenses were taken into account. Most, however, especially those arriving later, made little or wound up losing money.”
The opportunity to ‘strike gold’ with Facebook PPC today is much more like 1848 than 1849. Those who start mining Facebook today will get a head start on learning the platform, make mistakes more cheaply, face less competition, and foster stronger connections inside Facebook.
And unlike the 1849 gold rush, the rewards for Facebook PPC mastery will not be limited to “just” a few years of massive profits, but will likely generate returns for the next five to 10 years or more. If you were one of the lucky few to stumble upon Google AdWords in 2001 (as I was), the last 10+ years of online marketing has been very kind to you, as your expertise has been handsomely rewarded.
And though there are naysayers who don’t believe Facebook advertising will have the same massive impact of AdWords, I personally believe that Facebook will become a staple of every advertiser’s marketing budget over the next decade. As I recently noted on the PPC Associates blog, it’s important to evaluate Facebook advertising not as what it is today, but it will become. Consider the state of AdWords in 2001:
Unlike today, however, every single ad buy had to be negotiated on a quarterly basis with an ad rep. Unlike today, ads were bought on a CPM basis, instead of a CPC basis. Unlike today, there was no Google Display Network, YouTube, product listing ads, site link extensions, API, AdWords Editor, tracking pixel, or even a user interface. In other words, when Google started its advertising program, it sucked.
Facebook’s advertising program has made significant advances since its inception a few years ago, and the speed of improvement is only accelerating. Even if you currently don’t see awesome returns from Facebook PPC, Facebook will eventually release an advertising product that works for your business. So rather than sitting on your hands, now is the time to figure out this system so that when that great opportunity for your business arrives, you’ll be ready to strike.
For these reasons (and because we have this cool URL – FBPPC.com!), we felt that it was important for the online marketing community to have a blog completely dedicated to Facebook advertising. We acknowledge that there are many awesome blogs dedicated to the Facebook ecosystem (AllFacebook.com and InsideFacebook.com being two of my favorites); our hope is to contribute an additional, highly targeted perspective to the discussion.
We’re very excited to have assembled a group of writers who are truly at the vanguard of Facebook advertising. You can expect some pretty advanced, ‘inside baseball’ posts on this blog, so if you are afraid of APIs, advanced analytics, and algorithms, be warned! Hopefully, you’ll find the content interesting and valuable, but in the event you don’t, we want to hear from you. And if you’ve got some deep insight into Facebook advertising that you’ve never seen published anywhere else, we’d love to add you to our roster of contributors!
So bookmark this page, hitch your wagon, and get ready to strike some Facebook gold!
– David Rodnitzky, CEO, PPC Associates