Tag Archives: Facebook

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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Facebook Users Will Soon Have Their Own “Personalized Newspaper”

ImageFacebook recently announced that it plans to slowly roll out an updated News Feed to its users. They intend to clean up the first page Facebook users see by increasing font size, picture size and cleaning up the clutter that populates the current News Feed.


The most interesting addition is the addition of a category selector so users can filter their newsfeed by photos, friends music and more. Businesses, news publications and in general any company that has a “Page” on Facebook to promote their business, will soon have their own news feed separate from everything else.

This is a huge addition for any business owners, big or small, that promote themselves through Facebook to build their brand or to help sell their items online. Instead of having to wade through tons of pictures and status updates from friends, Facebook users will be able to see all the posts from pages they are following in one click, significantly increasing their exposure — for those who take advantage of this feature.

The one major disadvantage I see to this new news feed model is that most people will stay exclusive to the feed that shows what their friends are posting, unless they get the urge to go beyond what their friends did last Saturday night. So in a way this can turn into a double-edged sword for businesses by allowing Facebook users the ability to completely immerse themselves in the news feed of businesses, or ignore it completely.

Time will only tell how well this will pan out; for now you can ask for priority on the bottom of their promotional page to try the new design out for yourself when it is your turn.

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Teens Grow Tired of Facebook



Teens  spend a ton of time online everyday digesting news posted by friends from sites like Facebook and Twitter. In the rapidly expanding digital media age of today, people want their news fast, simple, and most importantly, private. For Facebook, this means buying out their competitors, even if they lose advertising revenue.

In a recent article posted on CNET, the rapid decline of Facebook’s teen crowd was explored. According to the article, many kids are finding that their time spent on Facebook is simply too public for their tastes. Parents and even grandparents are using the site now, wanting to interact more than ever with their extended family.

Teens are instead migrating to sites like Instagram, which Facebook impulsively bought for an approximate $715 million. Why this is so interesting from a business perspective however is that Instagram has no real advertising model. Facebook is pouring all of its attention to an application that they do not yet seem to understand, or at least how to exploit it for profit.

According to Nielsen, a company that analyzes consumers and their activity, Instagram was the “top photography Web site among U.S. teens ages 12 to 17, with 1.3 million teens visiting the site during December 2012.” Astonishingly, they concluded that approximately one in 10 teens with internet access visited Instagram in December of 2012. 

Facebook would be wise to find out how to advertise and take advantage of the ever-growing teen market that is now under their control. Figuring out online advertising is a constant uphill battle for online companies, even for Facebook.


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