Are You Gearing Up for Mobile Advertising? If Not, See Why You Should Be
We all know that social media has increased each year from its inception of just being a “Cool Way” to stay up on what your friends are doing and later as companies realized that they can reach out to their own customer base and exponentially grow their footprint via social interaction the use of social media has just taken off over the last few years.
This year is no different and it is increasing over last year’s figures, even at this time of year by a significant amount.
Looking at the stats, mobile advertising accounts for 84% of Facebook’s ad revenue
That’s up two percentage points from Q1 and eight percentage points from the same period last year.
Facebook’s revenue in the second quarter of the year surged 59% from the same period a year ago thanks largely to ad revenue from the network’s mobile advertising.
The social network reported that 84% of its Q2 advertising revenue stems from mobile ads, which appear on Facebook, Instagram and across Audience Network. Given that advertising makes up nearly 97% of the company’s revenue, the roughly $5.241 billion that retailers and other marketers spent on mobile advertising during the quarter made up about 81% of the company’s overall revenue. That’s a significant increase from Q2 2015, when mobile ads accounted for 72% of the company’s overall revenue.
“People have shifted to mobile and marketers know they need to catch up,” said Sheryl Sandberg, chief operating officer, during a conference call with analysts. “Mobile is no longer a nice to do, it’s a must do, and we’re working closely with marketers to help them make this transition.”
So are you already taking advantage of this growth in revenue generating stream? Since Facebook already has a tremendous amount of information stored on its users, it’s no wonder that based on your ads a particular segment of people can be targeted to see your ads. And with the general purpose of the app to be a ‘Sharing” medium, the domino effect of the viewer’s sharing your ad, just keeps growing. So the potential for increasing your audience and hopefully growing your number of followers increases all the time.
But just creating an ad does not mean that you’ve done your duty. Remember, this is a social site and in todays market, people are always looking for deals that they can’t pass up. So by offering a coupon or a group purchase deal that displays on Facebook you can increase the awareness by offering a “Special Incentive” to those people that “Share” your incentive offer with their own friends. This provides the means to elevate your own business’s likes and gets you exposure. But just having someone “Like” your page or ad, doesn’t put any cash in your sales drawer, you need to follow through on your incentive to make them want to follow through and purchase from you.
Facebook attributes its advertising success to ad targeting. An example was given on a company, Lighting Etc., a third-generation family-owned retailer that used Facebook and Instagram ads to drive in-store sales. The retailer targeted 25-45-year-old homeowners interested in interior design, who live within 35 miles of their Fort Worth, Texas showroom. That specific targeting enabled it to reach more than 300,000 consumers who were likely to be interested in its products. The retailer says its revenue is up 40% this year, which it attributes in part to its ads on Facebook and Instagram.
“We’re also improving the experience for our community by building our business with more engaging ads,” said Mark Zuckerberg, Facebook founder and CEO. “We’ve also emphasized the importance of measurements and value in driving real results for the businesses that use Facebook, and that means helping them create more relevant and engaging ads. Over the next five years, we’re working hard to build ecosystems around some of our newer products.”
Among those “engaging” ad types are dynamic ads, which let retailers and other advertisers serve shoppers ads based on the products they looked at on the merchant’s site or app. Sandberg said that retailers are getting “search-like ROI from dynamic ads.” She noted that more than 300 million consumers see dynamic ads each month and over 2.5 billion unique products have been uploaded by marketers.
Another key to Facebook’s success, said Zuckerberg, has been its ability to the changing ways consumers are interacting online. “Ten years ago, most of what we shared and consumed online was text,” he said. “Now it’s photos, and soon most of it will be video. We see a world that is video first with video at the heart of all of our apps and service.”
So, the clock is ticking away to the upcoming holiday season. If you would like a bigger share of the consumer pie or “Christmas Cookie” this year, you better take a good long look at how your targeting your marketing and start embracing dynamic ads geared towards a smartphone or pad device targeting Facebook and the other social media networks or you’ll have a bag full of coal this holiday season instead of cash.
A portion of the information used in this post was taken from Zak Stambor