The goal is to show the right ad to the right person, to match a consumer’s need to a product’s solution. Relevance and desire are key, so you’re just wasting your time and money if I see an advertisement for the newest smartphone and I won’t be in the market for one any time soon.
That has been the fundamental problem with ad targeting. How can advertisers really know what my intent is for a product and how relevant it is to me at that exact moment in time?
Well, they almost had it right by showing me advertisements for new basketball shoes when I visited ESPN.com. But how could they really know that is what I wanted? I’m visiting the website to check out the latest football rosters, and they just wasted valuable ad space to show me something I had no interest in.
Facebook has been in this game for quite some time.
Traditional advertising on Facebook has worked with your ads being displayed on the sidebar at random. They use internal metrics like age, gender, relationship status, and location among other factors to target its users. Your advertisement will be shown to your target audience based on these criteria, and the right group of people will see your brand. Sounds good, right?
This is the same problem that ESPN was facing. Sure you are targeting a group of people who, as a whole, would generally want your product or service. But you can’t look at your target as one – each person has their own needs and desires beyond their age, gender or where they live.
Now this is where retargeting comes into play.
Lets say I really want new running shoes and I visit a website looking for the perfect pair, but I realize that I am not ready to purchase them and leave their site. Later on, I go to another website to catch up on the news. As I’m reading an article, I notice an ad on the page with those same running shoes I was almost ready to purchase earlier that day. I think to myself, “maybe I should just buy those shoes already,” and I click the ad and buy them. That’s the concept behind ad retargeting.
In the last few years, this shift to ad retargeting has gained serious momentum, and Facebook is back at the forefront with their new ad platform called Facebook Exchange.
But what makes them any better than other platforms to retarget users?
For starters, Facebook touts over 1.15 billion monthly active users who are very much engaged within the site for long periods of time. It is a very controlled environment where users will stay and view new posts, play games, and message their friends.
And this is the best part; if you are opted in to FBX, after they almost make that purchase on your website and go back to Facebook, your ads can skip the sidebar and show up even more prominent IN THEIR NEWSFEED.
But what is this whole focus on putting ads directly in the newsfeed? It has a lot to do with mobile. The smaller sidebar ads aren’t even shown for mobile users who use Facebook because of the screen’s real estate. To make the case for Facebook’s popularity on mobile, it has been considered the third most popular app on our mobile device, behind email and web browsing. And on average, we will visit the Facebook app 13.8 times a day for an average daily mobile time of half an hour. With such a large percentage of mobile users using Facebook, you’re really missing out if your ad doesn’t show up in the newsfeed.
Not only does Facebook have the user base and their undivided attention, they also have results to prove FBX’s success. They found that FBX had a 21 times higher click-through-rates over web retargeting and a 79% lower cost-per-clicks than web retargeting. And since the addition of ads in the newsfeed, they have had 49 times greater click-through-rates over the Facebook sidebar FBX ads and 54% lower cost-per-clicks than the sidebar.
If you want a more successful ad campaign that will give you higher returns with the affordable results you need, give Facebook Exchange a go and see the power of ad retargeting.