Report: Facebook’s Advertising Superiority Lies In Its Creative, Not Targeting

?stanbul, Turkey - February 10, 2014: Businessman figurines standing in front of Apple iPad monitor  displaying start-up screen of Facebook application. Facebook is one of the most visited social networking website in the world.
SHARE
THIS



The $67 billion “machine” that is Facebook’s advertising business is powered by the wide array of creative it offers advertisers, enticing the average user to click on ten ads per month.

This is in comparison to the out-of-favour banner ad, which boasts an average click-thru rate of 0.06 per cent, and in some cases can actually result in a decline in sales.

Adtech firm Polar has released these findings as part of a new report into the social media giant and its advertising power, which reveals Facebook is on track to overtake Google in advertising revenue next year.

The recent acquisition of Instagram has aided Facebook’s continual rise, giving advertisers “a cheap alternative to YouTube and Facebook”, with its average CPM of $6.70, compared to the $9+ premium on Facebook and YouTube.

“Facebook has 71 per cent of global social ad spending, even when including YouTube as social,” says Polar in the 45-page report.

“Twitter, Snap, LinkedIn and Pinterest are fighting for scraps from the giant – Facebook. YouTube’s growth is also slower than Facebook’s.”

The creative value

However, Polar believes there is a misunderstanding among advertisers when it comes to appreciating the true value of Facebook.

“Advertisers believe that Facebook works due to targeting and targeting alone. We think there is more to the story,” says the firm.

“Creatives on Facebook are better than ever. The platform offers 11 different creative ad formats (including video, carousel and Stories).”

By addressing “every aspect of the marketing funnel” through its creative offerings, Facebook enables brands to leverage existing content (photos, videos etc.) and turn them into engaging campaigns.

The success of Facebook creative is also in part due to its ‘format familiarity’ for users, who are conditioned to engage with social posts.

The ‘toxic’ web

The report does not ignore the recent scandals that have plagued Facebook, rather it points out some issues that have arisen.

Engagement is dropping and prices are increasing, according to Polar.

“Advertisers saw a 17 per cent increase in price per ad in Q2 of 2018, all while engagement is steadily dropping quarter over quarter,” says the report.

“Facebook has hit ad density, and with revenue growing 25 per cent (faster than audience growth), that means only one thing: prices will continue to rise.”

And despite the unquestionable financial success of Facebook and its advertising business, there are still problems around trust for brands.

The report references a recent Harvard study which suggests Facebook’s approach to targeting may, in fact, be problematic.

People who were told that they were targeted based on activity elsewhere on the internet were turned off and became 24 per cent less interested in the brand, according to the research, while those who were told they were targeted for an ad based on “what was inferred about you” were 17 per cent less interested.

Please login with linkedin to comment

Advertising Facebook Media Polar

Latest News

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. While his mother fortunately survived, he lost his […]

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners
  • Campaigns

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners

In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
  • Advertising

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media

Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy
  • Advertising
  • Campaigns

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy

Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health
  • Marketing
  • Media

Nova 91.9’s Ben And Liam Locked Up In Rundle Mall To Raise Awareness For Mental Health

Nova 919’s Ben & Liam breakfast show announced that they’ll be throwing their support behind and raising awareness for a cause very close to their hearts, mental health. On Monday 21 June Ben Harvey and Liam Stapleton will be locked in a purpose-built glass structure, in the middle of Rundle Mall, for an entire week […]

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal
  • Advertising
  • Media

iHeartPodcast Network Australia And The New York Times Agree Podcast Ad Sales Deal

ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off
  • Advertising
  • Media

Verizon Media Academy Ends For 2021 With Youth Charity Pitch-Off

Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]