Advertising on Facebook has always been a fairly inexpensive, targeted addition to a company’s digital marketing/social media strategy. It allows brands to build “likes” and promote special offers to a pretty precise demographic. This month, Facebook is experimenting with even further targeting approach – displaying ads based on real-time conversations. The sample set is 1% of Facebook’s user base – or roughly 6 million people.
The goal is to place relevant advertising in front of people while they are online, in a decision making process. So the standard “I’m hungry” post, while boring to your friends, is potentially gold to advertisers. At the exact time you’re hungry and deciding where to eat, McDonald’s, Pizza Hut, or any local sandwich shop can be vying to whet your appetite. What would be even more beneficial, is the ability to couple post targeting with the options Facebook already has available. So, if I’m a business and I know that someone is a fan of mine, or my competitors, then I know they already like my (type of) product and have a high chance of converting.
Facebook is currently monitoring results to determine how much more effective (or not) this advertising approach can be. Assuming the algorithms are in place to display the right ad at the right time, I see this being a highly effective advertising approach with high conversion rates… which of course, will result in higher CPC/CPM. But, hey, the beauty of online advertising is the ability to be hyper-targeted and track results so you know exactly where your money’s going and how it’s working for you. This is just one more way to be in front of consumers exactly when they are making their purchasing decision.
While all this sounds great – you can’t talk about ultra targeted advertising on Facebook without raising the “Privacy” issues again. “You mean Facebook is going to monitor my conversations???” Just as the FTC monitors Behavioral Advertising, this too will raise concerns of some. In reality though, the launch of sites like Boutiques.com prove that people are becoming more accustomed to (and often prefer) personalized browsing and shopping experiences. No doubt, Facebook will be prepared to win this battle.
I look forward to the results of the test and being able to offer yet another, highly targeted, digital marketing option to our clients.Source: AdAge