With the upcoming IPO, Facebook as been in the news more than usual lately. First, General Motors announced that they will be cutting $10 million off their $30 million Facebook ad budget, and now Greenlight, a digital marketing agency, has revealed their 2011-2012 Search & Social Survey, and these are some of the highlights:
- 44% of people surveyed will never click on ads (but 13% of those people don’t use Facebook)
- 10% said they click on those ads ofter.
- 3% of those surveys click on ads regularly
- 30% don’t trust Facebook’s handling of their personal data
These findings should be taken with a huge grain of salt; these stats aren’t from Facebook, but from a sample of 500 people, mainly in Europe. Another thing to consider is that you really can’t judge the effectiveness of an online ad by its click through rate. Facebook will allow anyone to display an (approved) ad and either pay per click (PPC) or per a thousand-units of impressions (CPM). Sometimes campaigns targeted for awareness and not necessarily for traffic via clicks. Take for example the ad below:
It was targeted to me, thanks for my (awesome) taste in music, but does it really matter click on it? It did catch my eye, and it did make me aware that the Dan Band will be performing soon. If I click on the ad, I will be taken to a site where I can buy the tickets, or I could simply buy them buy going to Ticketmaster directly, Stubhub or showing up at the venue’s box office and. Now lets analyze the following ad.
An ad to watch a TV concert. No direct buy involved, but the cleverness here is that the click will allow me to “like” the ad, spreading it for free amongst my friends. As technology evolves, so will the ways advertisers will find to get their message heard, and tracking the effectiveness of their ads will become even harder, unless they invent a device that measures intent, awareness and catchiness of a jingle.