Tag Archives: advertising

Advertisers on Facebook now have the option of cost-per-action advertising

ImageFacebook recently added a new cost-per-action advertising model. What this mean is advertisers looking to raise brand awareness by getting users to ‘Like’ their page will only pay for the advertising when a user actually follows through with liking the companies page.

This is pretty big, since I am sure many companies have wasted tons of their advertising budget on ads that lead to no sales or no brand awareness. Now, for example, a company can decide that when a person likes their page, they will pay a flat CPA of $2. Or if their are running a certain promotion of a product, they will pay a CPA of say $3.50 for every successful promotion sale.

I recently blogged about the rising trend in companies seeing the importance of brand awareness and advertising through social media, and this story seems to go hand and hand with my past article.

Here is what a Facebook spokesperson had to say about the new advertising CPA model:

Facebook is now offering CPA-based (cost-per-action) ads through the ads API for certain actions, including conversions on page likes, link clicks, and offer claims. This feature will give advertisers more predictability in their spend for specific actions.

So the next time you like a companies Facebook page, be aware that you might be putting a few bucks into Facebook’s pocket in the process.

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The trends of social networking advertising

ImageCompanies are beginning to see the importance of branding and advertising online. Social networking sites are their top priority, but just how much are advertisers willing to spend to promote themselves on sites like Facebook and Twitter?

According to an infographic on AllTwitter, global social network advertising revenues are expected to raise from 2012’s seven million to 14 million by 2014. Sixty-four percent of advertisers said they plan to increase their social media advertising budget by 2013. 

Facebook reigns king when it comes to raking in the most advertisers, accounting for 57 percent of all social media advertising budgets. Twitter and YouTube each hold 13 percent each. I think Twitter’s share will raise in the next couple of years because it has grown to an incredible number of 200 million users worldwide. All businesses and companies seem to have a Twitter account these days, advertisers would be foolish not to brand themselves on there.

Interestingly, 46 percent of advertisers said that their main goal for social media advertising is raising brand awareness, and not so much about direct traffic and product sales. This is likely due to the fact that currently a only a small portion of an advertisers budget is dedicated to social networking sites, so they can afford to not push too much when it comes to actual product sales. Seventy percent of advertisers devote 1-10 percent of their online advertising budget to social network sites.

It is going to be very interesting in the years to come watching advertisers compete for viewer attention online. With social networking sites becoming more and more appealing to advertisers, I wonder just how much this will potentially impact the prices and competitiveness of advertisements on social networking sites.

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