mobile news

Facebook’s Magic Number 16%

Source: http://www.businessinsider.com/facebooks-entire-brand-advertising-business-boils-down-to-one-number-16-2012-3

 

Sheryl Sandberg at Facebook

One secret reason why Facebook ad revenues haven’t quite taken off like they should – and are, in fact, decelerating – is that for years now, brands have advertised on Facebook without paying Facebook.

Here’s how they’ve been doing it:

  • Brands build a “page” on Facebook.
  • Facebook users become “fans” of that brand page, thanks in part to ad campaigns off Facebook.
  • The brands post video, photos, or text to the page.
  • That content goes into fans’ News Feeds.
Yesterday, in front of more than 1,000 advertising executives here in New York, Facebook announced a new ad product it hopes will finally convince brands to do more than use Facebook’s free features.
The pitch boils down to a number: 16%
When a Facebook page owner posts a piece of content to their page, and that content gets disperse red into the News Feeds of that page’s fans, only 16% of those fans will actually see that piece of content.
Facebook’s new ad product, called Reach Generator, is supposed to take that number, 16%, and push it toward 100%. Test campaigns pushed it past 95% in some cases.
Basically, when a brand buys into a Reach Generator campaign, Facebook will push posts from that brands page into its fans’ News Feeds, mobile News Feeds, and log-out screen until almost all of that brand’s fans see it.

 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Thursday, March 1st, 2012 display advertising No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

Augustine Fou portrait
http://twitter.com/acfou
Send Tips: tips@go-digital.net
Digital Strategy Consulting
Dr. Augustine Fou LinkedIn Bio
Digital Marketing Slideshares
The Grand Unified Theory of Marketing