Have you ever searched for a product online, only to have ads for that product relentlessly follow you around on all your social media accounts?
Anyone who uses social media today has been irritated by these ads, which just won’t seem to go away, and they’re not going away any time soon, either.
With the ridiculous number of people on social media, and the fact that social media companies are making the bulk of their money from ad revenue, it’s safe to say that these ads will probably be around forever.
Data from We Are Social and Hootsuite shows that there are more than 3 billion active social media users, and each day, there are now nearly 1 million new social media users – that’s equal to more than 11 new users per second.
At the same time, Facebook’s ad revenue for 2017 was about 40 billion U.S. dollars.
Back in 2009, they weren’t even making a billion on ads, but they’ve seen consistent, huge increases in ad revenue every year since then.
So, how does Facebook rake in this kind of scratch from selling ad space?
Well, obviously they have a product that works.
A survey from SurveyMonkey found that 48 per cent of social media users made a purchase after seeing an ad.
If you’re a business owner, you’re probably intrigued at this point, but possibly still skeptical.
Keep reading if you need more convincing or you’re just curious to know more because we’ve laid out some of the reasons why you need social media advertising.
But first, check out our video on the importance of using social media to market your business.
A lot of social media advertising is bought programmatically, which is just a fancy-pants way of saying it’s bought using software.
But what this means is advertisers have an immense amount of data at their fingertips, which allows them to reach their target audience like never before.
You can target your audience based on a huge range of factors, including age, income, gender, relationship status, language and education.
In addition to this, you can also target based on people’s interests, browsing behaviour, the apps they like to use, and their location, as well.
And, as I discussed above, these kinds of ads can also follow your target audience wherever they browse, as long as they use the same logins across all their devices.
Check out our blog if you want to learn more about programmatic advertising.
Retargeting allows you to target those who’ve already shown some kind of interest, such as visiting your website or purchasing something from you.
Often, people will go to a website intending to purchase something, but then, after placing things in that little digital shopping cart, they’ll leave the site without buying anything.
Maybe they needed to think it over or realized they couldn’t afford it right now, but whatever the case, retargeting allows retailers to re-engage these stubborn shoppers and try to seal the deal.
A case study from Webrunner Media Group shows just how effective retargeting can be.
In a retargeting campaign for one of their clients, they targeted people who recently visited the client’s website, added a product to their cart on the site, or purchased something from them within the last six months.
This generated over $15 in revenue for every $1 spent on retargeting ads – a 1,529 per cent return on ad spend.
The case study above is just one of countless examples of how social media ads can provide a higher return on investment than other forms of advertising.
The accuracy of the targeting provided by social media ads translates to a significant reduction in wasted ad spend, and this alone pretty much guarantees a better return on investment.
Since you can target a highly specific audience, you won’t be wasting money serving ads to people who aren’t going to give a rat’s ass about your product.
And you don’t need a massive budget to get huge bang for your buck with social media advertising.
According to a case study published by Search Engine Journal, Vamplets, a website that sells baby vampire dolls (I know it’s weird but bear with me here) spent $250 per month on Facebook ads, which brought in $1,000 in monthly revenue. Not bad!
On the other hand, if you’ve got the funds, you can generate massive returns on your ad spending.
A case study from Paul Ramondo shows how he spent about $6,000 on Facebook ads, which generated a whopping $163,969.49 in revenue in a little more than a month.
With other forms of advertising, you don’t even have an effective means of determining your return on investment.
But when you’re advertising on social media, you have access to advanced tracking technology that allows you to look at every detail about how your ads are performing.
This technology provides a wealth of data for advertisers.
This includes not only your total conversions, but it also categorizes and shows you the value of every conversion and allows you to analyze the behaviour of those who’ve been served your ads and those who’ve clicked on them.
This is where it can get kind of creepy.
For instance, if your ad was served to someone 6 weeks ago, and that person purchased something from your site today, that can be tracked.
You can also track the behaviour of website visitors who were served your ads, right down to the minute details, like whether their volume was up when they watched your landing page video.
And using Google Maps, you can even know when people who were served your ads ended up showing up at one of your stores.
Advertising on social media gives you access to billions of potential customers and allows you to reach more of the right people by taking advantage of the targeting capabilities offered by these platforms.
But it also allows you to spend considerably less than you would on other forms of advertising to reach the same number of people.
A case study from Brian Carter showed that by investing $1 per day on Facebook ads for 30 days, he was able to reach 120,000 people – that’s 4,000 people per day!
The study also includes an infographic that shows how much it costs to reach 1,000 people using various forms of advertising.
While a newspaper would charge you $32 and a radio station would charge $8, the cost on LinkedIn would be just 75 cents, and on Facebook, you could reach the same number of people for only 25 cents.