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Paid Facebook Advertising Moves Front and Center for Marketers

Written by: Laurie Cutts, Director of Marketing

Paid Facebook advertising has moved front and center for marketers. More than ever before, Facebook marketers will need to leverage paid Facebook advertising to make sure their content is seen by fans and potential customers on Facebook.

Facebook recently updated its News Feed algorithm to ensure its users see more timely and relevant content. As a result, marketers have started to see the organic reach of their posts on the social network decline.

At the same time, competition for the Facebook News Feed has intensified which means marketers will need to adjust their strategies to include both engaging page content as well as paid advertising to promote their message broadly. Facebook highlighted this trend in a recent blog post:

People are connecting and sharing more than ever. On any given day, when someone visits News Feed there are an average of 1,500 possible stories we can show.

As a result, competition for each News Feed story is increasing. Because content in the News Feed is always changing, and we’re seeing more people sharing more content, Pages will likely see changes in distribution. For many Pages, this includes a decline in organic reach. We expect this trend to continue as the competition for each story remains strong and we focus on quality.

For brands who have invested heavily in building their fan base, don’t despair. Facebook says “The fans you have matter.” There are a number of benefits to acquiring fans, including improved organic distribution and getting more insight about your audience.

By leveraging your Facebook fan base, you can improve your paid advertising effectiveness. Including social context in your ads can have a positive impact on ad recall and sales. Ads with social context have 50% higher recall and delivered a 15% lift in sales. Plus Facebook’s algorithm favors ads with social context so you most likely will pay less for delivery. You can also analyze your fan insights (geographic, demographic, likes/interests) to inform your ad targeting and glean preferences for ad creative.

But you can’t rely on fans alone. To amplify delivery of your message in News Feed, you should consider using paid distribution as it allows you to reach people beyond your fan base.

Facebook offers extensive reach with the opportunity to engage 1.19 billion people worldwide. From creative and targeting to optimization and reporting, paid Facebook advertising provides:

• High-impact placements in News Feed where people spend the majority of their time.
A googol number of targeting options, based on people’s demographics, psychographics, affinities and behaviors.
• Innovative media buying, tracking and optimization options honed for performance marketing.

Facebook has always supported the notion of combining paid, owned and earned media to extend the reach of advertisers’ messages. With the explosion of both branded and other content on Facebook, it’s essential for companies to invest in a marketing strategy that focuses on high quality content along with paid media to reach audiences beyond existing fans.

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