Facebook is the world’s largest social network. So it only makes sense for any commercial enterprise to want to advertise on the platform. With over a billion active users every month, it would seem inconceivable to pass up marketing to such a staggeringly large audience. What’s more, Facebook is consistently refining its policies and strategies to try and offer better opportunities for advertisers — but without disrupting user experience. Some of its improvements include the FBX and exploring the potential of hashtags.
Retargeted Ads and User Experience
The FBX, or Facebook Exchange, is a cookie-based retarget ad that helps businesses to market to Facebook users who have come to their website intending to make a purchase but, for one reason or another, failed to make that purchase. The website drops a cookie on the user’s browser and passes the complementary cookie to a demand side platform or DSP. The DSP then identifies that user to Facebook and says that it intends to advertise to that user so the next time that user logs on to the social network, it sees a sidebar ad from a specific advertiser.
Retargeted FB ads, thankfully, are not designed to be intrusive because a user can disapprove the ad. When that happens, the user is shown a link to the DSP so they can opt out of receiving future FBX ads. The social network is also fully aware the users will want to keep their privacy. A report from TechCrunch reveals that while Facebook is letting FBX partners use standard biographical ad targeting in addition to retargeting, the social network is not giving crucial bio data of its users to advertisers. Of course, beyond maintaining user privacy, the reluctance to give user bio data may keep advertisers from coming up with a more accurate profile of site visitors in order to market to them outside of the social network environment.
#DollarSigns?
Rolling out ads on Facebook is not the only means that businesses can reach consumers. The social network has also just started using hashtags to boost social engagement. For marketers and entrepreneurs, that could mean a boost in branding. Why? When someone uses hashtags, businesses will not only recognize their interests but also be able to engage them in conversation, which social media strategists refer to as pinpoint marketing. When combined with what the social network collects from its users (e.g., name, sex, location, age, etc.), a hashtag creates an impressively targeted ad.
Facebook reports that its use of hashtags has resulted in high engagement, citing #gameofthrones for receiving 1.5 million mentions — over one shockingly good episode (the Red Wedding episode, to be precise). However, using hashtags may be better suited for driving word of mouth and awareness for brands rather than pushing sales as the social network is still looking into the viability of adding hashtags to some ads.
Whether it’s using the traditional sidebar ad or maximizing opportunities with retargeted ads, your business can explore the advertising (and marketing) channels on the world’s largest social network. But weigh your options carefully, and choose advertising opportunities that can guarantee returns on your investment.