Facebook has formally launched its new search-ad offering, and is touting major upgrades to its iPhone and iPad applications. The changes will require brands to rethink their marketing strategies.
With every adjustment or alteration Facebook makes, marketers who rely on the platform must adapt as well, according to a new eMarketer report, “Facebook Marketing: Reaching Customers in a Changing Environment.”
Facebook has introduced several new marketing tools in the past year:
- Timeline format for brand pages.
- Sponsored Stories.
- Reach Generator.
- Other advertising offerings that incorporate regular posts.
- Social media metrics that go beyond counting fans, incorporating reach, sharing and engagement into measurements.
Many of these updates improve on Facebook’s free tools. But marketers beware: Subtle changes behind the scenes mean brands will need to incorporate paid advertising in the mix if they want to get much traction using Facebook’s free services. This is critical for many marketers to understand, since 83% of all companies with at least 100 employees will use Facebook for marketing this year, eMarketer estimates. By 2014, that will rise to nearly nine in 10.
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As Facebook has rolled Timeline out to all brand pages, it has meant a de-emphasis on tabs, which used to let brands choose their own landing page for Facebook users. In addition, Facebook’s inclusion of ads in the newsfeed that seamlessly fit into organic content on the site are not solely an opportunity for paid media. In fact, in early 2012, during the Facebook Marketing Conference, the company said that when a brand posts an update to Facebook, only 16% of its fans actually see the content. This is largely due to Facebook’s Edgerank algorithm, which determines what status updates, posts and comments are shown on users’ newsfeeds. The algorithm chokes back the amount of brand content users see as a way to manage the increasing content being posted to Facebook. So, while getting more fans to comment and engage with the post will increase its reach, the easiest way to win higher visibility is now, of course, by paying to integrate posts into the feed.
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For marketers looking to keep their visibility and engagement high with Facebook users, the new ad formats require planning and integration between advertising and social media management teams.
Grady Burnett, vice president of global marketing solutions at Facebook said.
“It’s starting with a good page post, a good strategy, and then figuring out how to amplify that and drive persuasion with it. Paid and earned, when used together, perform best.”
The full report, “Facebook Marketing: Reaching Customers in a Changing Environment,” also answers these key questions:
- How are the changes to Facebook affecting marketers’ strategies for the social network?
- How are consumers responding to the new elements and the evolving marketing tactics on Facebook?
- As Facebook matures as a website, is its relationship with brands and marketers advancing or regressing?
This report is available to eMarketer corporate subscription clients only. Total Access clients, log in and view the report now.
COMMENTARY: Unlike Facebook's Marketplace ads (the ads appearing in the right side of the page), infeed ads could alienate users because of the intrusive nature of those ads. Although Facebook claims that paying for infeed ads increases user engagement, it has been conclusively shown that pressing the "Like" button or making a comment, does not necessarily translate into a buying decision on the part of the user. Furthermore, placing ads directly into the newsfeed may increase the likelihood that users will eventually subconsciously blockout the ads in the same way that they have Marketplace ads. In my opinion, in feed ads are still a work in process. There will probably be a increase in "curiosity" clickthroughs, but afterall, they are just ads, and users consider ads intrusive to the overall enjoyment f their social media experience. Many users view their Facebook pages as sacred and private social spaces, and ads are unwanted strangers.
If you haven't already done so, I recommend you read my blog post dated March 1, 2012 and April 25, 2012 for my commentary of Facebook's Timeline for Brands, and my blog post dated February 7, 2012, June 8, 2012 and June 21, 2012 for my commentary of Facebook's Sponsored Stories.
Courtesy of an article dated August 24, 2012 appearing in eMarketer Blog
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