Social Relevancy, Friend Endorsement Lead to Increased Conversions for Facebook CPC Ads

Posted by Michael Kahn, SVP, Marketing

Facebook recently announced the new “friends of connections” targeting option for Facebook CPC ads.  This option allows advertisers to consider all the people who are connected to their brand via a Fan Page, Application, Group or Event and then target ads at the friends of those people.  For instance, a brand can deliver an ad promoting their Fan Page to a friend of a person who is already a fan of that page.  The ad will say: “Michael Kahn is a fan of [brand’s] page.”  Because the ad is endorsed by one of the user’s friends (me), the ad is much more relevant.

Performics believes this announcement will further improve our ability to drive results for our Facebook CPC clients.  Our recent Social Marketing Study found that consumers are open to marketing messages on the social networking sites.  Based on client results, we have found consumers are even more open to marketing messages endorsed by their friends.

Through previous testing, Performics has found that click through rates (CTRs) were 100+% higher for ads that included a friend endorsement, such as “Michael Kahn is a fan of [brand’s] page."  These friend endorsed ads, called “engagement ads,” allowed users to become fans of a brand or RSVP to an event straight from the ad.  They also directed users to an advertiser’s Event or Fan Page.  In a recent test of friends of connections targeting, Performics saw a 50% increase in conversion rates over ads that did not include a friend endorsement.  Therefore, friends of connections targeting sent more qualified leads to the advertiser.  

To make the most of increased qualified traffic from friends of connections targeting, advertisers should make sure their Fan Pages are optimized to convert consumers.  Effective Fan Pages can include:

  • Links to the advertiser’s native site
  • Banner ads highlighting promos
  • Status updates promoting deals
  • A mailing list sign up form

Friends of connections is also a valuable targeting tool for ads directing consumers to an advertiser’s native Web site.

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