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Australia, Facebook, Action!

Written by: Cheryl Morris, VP Marketing

Over 12 billion. That’s how many ad impressions our Facebook advertisers have run in Australia to date. So as Nanigans continues its global office expansion with Australia right around the corner, we felt compelled to ask ourselves what have we’ve learned so far? The answer is quite a bit. But one of the most pressing questions that our data allows us to answer from a marketing perspective is…how does Australia truly feel (usage & engagement) about Facebook?

At Nanigans, we look at over 100 analytical parameters to optimize campaigns. The reason for this is that everything is connected in some way. Targeting can impact cost-per-click while simultaneously impacting conversion rates which can impact cost-per-sale metrics which impact email campaign metrics and so on…etc.

One metric that can be impactful if measured appropriately is action rate. Action rate varies by vertical/advertiser and can range from a like, to a click, video view, form fill, purchase or anything else in which a user completes a post-impression goal. Action rates are measures of future intent, and can often show how engaged an overall audience is which can impact both paid and organic campaigns.

As Nanigans expands its global footprint to Australia, action rates will be a focal point of conversations that we have with advertisers. Our end goal is revenue and return-on-ad-spend; however, in order to get to revenue one must examine all aspects of a campaign and in this instance try to understand the tactics that produce the best action rates, as they are an indication of activity on Facebook.

Is Australia Using Facebook?

So at the highest level, is Australia on Facebook and actively engaged? The Sydney Morning Herald reported on Facebook user activity recently (excluding brand pages) and the numbers are as follows:

  • 12 million monthly active users (desktop and mobile)
  • 9 million total daily active users (desktop and mobile)
  • 9.8 million mobile monthly active users (mobile only)
  • 7.3 million mobile daily active users (mobile)

The overall population of Australia is just over 23 million (major cities by population include Sydney, Melbourne, Brisbane, Perth and Adelaide), meaning that each day roughly 40% of people in Australia check Facebook, a pretty healthy percentage for advertisers.  That number increases to over 50% in regards to monthly users.

What About Ads?

Ok, so we know that as an audience, Australia uses and engages on Facebook quite often, but what about advertisements? Is Australia open to engaging with advertisers? The good news here is that Facebook is dedicated to user experience and providing the most relevant experience for each individual user, which means Facebook also expects proper ad targeting from its advertiser community. At Nanigans, we think that with over a googol targeting combinations on Facebook that the only people who should be seeing your ads…are people who should be seeing your ads. Not all users will engage with your ads, but they should understand why they’re seeing the ads they’re seeing, because the targeting (working with a platform like Nanigans) is that precise.

In a data pull examining recent activity in Australia across over 12 billion impressions, our action rates were as follows by vertical:

  • E-commerce: 19% action rate
  • Travel: 11% action rate
  • Gaming: 18% action rate

How should advertisers react to these numbers? First think about them in context. We’re simply talking about an action, which can mean a myriad of different user events. What is encouraging is that this is the first step in showing true intent. Imagine running a paid search campaign. The only major indication of intent is a click (because the search is simply the exploratory stage), and can you imagine consistent click-through-rates of over 10%? While Facebook ads and paid search ads are not the same and should not be held to the same standards, action rates on Facebook in Australia should have advertisers feeling confident.

What Can Advertisers Do?

So how are the verticals listed above and others achieving success in Australia? By focusing on three simple stages of consumer marketing:

1.) Aesthetics (the interest stage)

When scrolling through your newsfeed whether on Desktop, tablet or phone, what’s the first thing you notice? Aesthetics and imagery. For advertisers, focus on aesthetically compelling imagery that will grab a hold of your audience and draw interest.

2.) Language (the consideration stage)

Once you’ve seen an image on Facebook that attracted your interest, what’s going to keep your attention and make you read the content? The language. Advertisers need to highlight urgency and value in order to engender an audience to consider your offer.

3.) Relevance (the decision stage)

Now that you’ve been enticed by aesthetics, inspired by language, what is going to make you actually take action with an ad? The answer is relevance, which speaks directly to targeting. Advertisers need to make this stage easy for their audience by focusing on precision targeting, and with over a googol targeting combinations on Facebook, relevancy is the easy part.

Interested In The Australian Market?

Nanigans plans to be on the ground soon with a physical office and a local team, but in the meantime, if you’d like to learn more about some of the marketing trends we’ve seen historically send us a note at info@nanigans.com. Whether you’d like to learn about desktop, tablet, mobile phones, CPMs, CPCs, CTRs, CPA, ROI, or customer lifetime value specific to Australia, we’re excited to have the conversations and for you to be a part of our expansion together!

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