Posted by Dave Strong, Account Manager
At Performics, we’ve seen great success running Facebook CPC ads to drive sales and leads for our clients. Facebook CPC ads are particularly efficient at generating leads and creating brand awareness. We’ve seen Facebook campaigns perform much like Content Network campaigns, with lower click through rates (CTRs) and lower conversion rates than paid search. However, Facebook advertising performance is actually better than paid search on a cost per lead basis. This is because we are able to target users so specifically on Facebook (i.e. by age, geography, gender, and user interests as indicated in their profiles) and cost per clicks (CPCs) are so inexpensive. Facebook ads are also useful for branding campaigns because of the phenomenal number of impressions generated.
To illustrate these points, let’s take a look at the November ’09 comparison between a large advertiser’s paid search and Facebook CPC campaign. Both campaigns are large programs that are being continually optimized. In November, CPCs for the advertiser’s paid search campaign were 5 times higher than the advertiser’s Facebook campaign. With the low CPCs, the Facebook campaign drove a substantial number of leads as compared to the paid search program—only 2.5 times less leads than paid search. Perhaps most interestingly, we measured lead duplication rates for this client (i.e. the number of people that are re-inquiring and already exist within the client’s database of leads). We found that duplication rates for Facebook were lower than paid search, meaning that we're reaching a very different audience via Facebook than we're reaching in search. These results show that advertisers should utilize Facebook CPC ads to make the most efficient use of their advertising dollars in 2010.