The Way I See It, Facebook, You’ve Only Just Begun
Published: October 1, 2012
Author: Dan Slagen
Yes, we all saw the stock tank.
We’ve all heard the rumors about this company being overhyped and under-delivering.
But remember when Ford’s stock was $1.80 back in 2008? There was talk of Ford no longer being around in the years to come. Well look at Ford now…Their stock is 5x what is was in 2008, they hired @scottmonty to dominate their social media, and in case you haven’t been paying attention, their redesigned Ford Fiesta and Ford Focus cars are poised for exceptionally bright futures.
Well, with Facebook’s recent announcement that the company is launching a gifting service, I think it’s time we give some credit where due.
Facebook isn’t going anywhere anytime soon. They are approaching 1 billion users and focusing on revenue models for the first time since the inception of the company. To think, a company that presented the world with a great product first, and thought about how to best monetize after…isn’t that what we as consumers and marketers should love and respect?
Touting the tag line “real gifts, real friends,” the company will begin “with handful of products, including cupcakes and Starbucks gift cards, but it has plans to expand to a range of goods including chocolates, socks, miniature dinosaurs, and even ice cream.”
So what does this have to do with Facebook PPC advertising? Well, Facebook is continually becoming a more inclusive place where people live, at least online. PPC is now one component of a larger strategy on Facebook. For the select PPC professionals out there, you’ll see the opportunity with this new gifting opportunity as a way to try something new which is something we all crave in the world of PPC.
What if your company or your social media manager could send gifts to other companies or targeted users who are your “friends?” How could you weave this type of gifting or rewards program into a PPC model? Easy! Run PPC ads and, within the rules of Facebook’s policies, offer a free gift in exchange for completing your call to action. (For HubSpot, maybe potential prospects would love to get a cup of coffee from Starbucks before reading one of our marketing grader reports or beginning a 30-day trial.) This is a new angle for PPC marketers on Facebook.
If you can increase your conversion rate, lower your CPL, and ultimately lower your cost per sale, then you could justify adding the cost of a gift. If, in fact, you do have a higher conversion rate, this type of a program could be your answer to the weekly question from your CMO: “How can we scale our PPC efforts further?”
Facebook is just getting started. In the past few weeks, the company has rolled out a bunch of new, significant initiatives that can be beneficial for marketers including retargeting, new mobile ads, and now gifting. The opportunities for marketers are only going to grow as we start Q4 and move into 2013. As more and more offerings are announced, it will benefit us as PPC managers to think about the bigger picture, and make sure that PPC is serving as one component of our overall Facebook strategy.
– Dan Slagen