It’s tough to ignore the buzz about the ROI some brands are seeing from social media advertising. Better ad automation tools and more sophisticated methods of measuring success are giving companies who seize the opportunity the ability to see impressive returns on direct response campaigns.
Ask my sales team – the concept of advertising on Facebook is not a hard sell anymore.
But the truth is that it can still be undervalued, particularly by advertisers who rely solely on last click attribution: It’s often not thought of as the last thing you do before you buy.
Although social media advertising can be the start of your customer’s purchase journey, especially with a strong acquisition and retargeting strategy, it’s not always the last click or historically how direct response has played a role. Social still doesn’t get the majority share of most direct response campaign budgets even though there’s no denying it plays an influential part.
To experience significant social media advertising ROI, you have to do more than just dip a toe in. The following stats should help convince you that you should be allocating a significant portion of your lead gen budget to social:
1. Social networking accounts for 28% of all media time spent online (Adweek)
On a day-to-day basis, adult Facebook users are spending almost 40 minutes on the site each day and a full 45% of Facebook users log into the site multiple times a day. There are 936 million daily active users, so 421 million people are logging in multiple times a day. Facebook has the clear advantage as an advertising channel for companies seeking reach that can be highly targeted and incredibly cost effective.
The apparent addiction persists across devices – Facebook and Instagram get more than one out of every five minutes spent on mobile. Just *two* sites/apps taking up at least 20% of our time on phones. This is huge.
Coupled with Facebook’s recent ad performance trends, this channel alone has proven to be a significant driver of customer acquisition for companies with direct response goals:
- A year ago, Adobe reported that Facebook ad impressions were up 40% year over year.
- Global CTRs went up 260% year over year, signaling growing engagements and increasing accuracy in advertiser’s targeting.
- Facebook ad clicks were up 70% year over year.
2. 92% of mothers who use social media make purchase decisions based on what they see on it. (Digiday)
Moms hold 85% of the purchasing power in a home, and while your direct response objectives may not prioritize targeting them as a demographic, your buyers and lead sources no doubt include mothers. 60% of these ladies access Facebook multiple times a day, so if cracking into this market is a must-do for the success of your business, having a strong paid presence on social media advertising is one of the most effective ways to ensure you get in front of them.
Facebook makes it incredibly easy to target moms. In addition to the demographic-level targeting that you can do to pinpoint this audience, Facebook offers more than two dozen partner categories dedicated to mother-related lifestyles, such as Big City Moms, Corporate Moms, Fit Moms, Green Moms, Stay-at-Home Moms, and more.
Moms also spend more than 2 hours A DAY on their mobile devices, which leads me to my next point…
3. Within 4 years, mobile ad spend is projected to represent 72% of total ad budgets. (eMarketer)
Sure, this stat argues for mobile ad spend, but the lowest barrier to entry in getting in on mobile impressions and performance is through social media advertising. Innately, their platforms help you optimize your ads for mobile devices if you configure your campaigns appropriately. Targeting your offer toward users on specific devices or operating systems has never been easier… and has never been more important, as 38% of monthly Facebook users are mobile-only and 80% of Twitter’s usage happens on mobile.
If you’re not yet advertising in the mobile space, you’re missing the fastest growing segment of Internet traffic and a key component to a profitable performance marketing strategy. Users spend close to 3 hours on their devices, chipping away at the time they spend on desktop, and have more than 7 social media apps on their phones.
Likewise, mobile spend is stealing budgets historically earmarked for TV and print, and the speed at which it’s being allocated there is increasing. To get in on the action, a strategy that is supported by social media advertising ensures you’ve got a presence on mobile devices with the accurate targeting and affordable placement promised by the likes of Facebook, Pinterest, Twitter, and others.
4. When a brand’s Twitter followers see the brand’s promoted tweets, they buy 29% more than other followers who simply see organic tweets (VentureBeat)
Talk about ROI. Twitter has been prioritizing lead generation for a few years now, and it’s starting to show. More and more of our clients are looking to diversify their social media strategy, and Twitter is quickly gaining momentum. Advertisers should not dismiss the opportunity to get in early and figure out how to make Twitter work for them before it becomes as competitive as Facebook.
Taking advantage of Twitter’s new objectives based pricing allows you to pay only for actions like link clicks, allowing you to optimize toward web conversions rather than paying for top funnel actions like engagement. Taking advantage of Twitter’s Lead Gen cards, Offer cards, Mobile App cards and Website cards is a prime opportunity to drive acquisition while maintaining competitive CPAs.
If, to date, you’ve only tested Twitter organically, your efforts are still worthwhile; this baseline of activity layered with paid Twitter advertising maximizes the effect to drive measurable impact. Twitter has reported that users who engage with promoted tweets buy more, but impressively, they saw a 2% lift in sales from those who only saw a paid tweet and didn’t even respond or click on it as well.
5. Omnicom has advised some clients to move between 10% and 25% of their TV budgets to online video. (tubefilter)
Clients, as in McDonalds, Apple, and Pepsi, among others. The move to online video has advertisers spending on video at a considerably faster pace than digital overall. While the move to digital from TV has these advertisers eyeing Hulu, YouTube, AOL and other platforms, Facebook has been stepping up their game with an increased focus on video options for advertisers of all sizes. Just recently, the social network announced a move that may insist to advertisers that they have their best interests in mind – a competitive offering that gives marketers an option to pay for video ads only when they’re viewed by users for at least 10 seconds. Across all video ads, the CTR rate on Facebook is up 57% over last quarter and as such, 31% of Facebook budgets have shifted to video due to higher performance.
With video views on Facebook having reached 4 billion per day, Facebook’s video ad plans will continue to grow, and will continue to give advertisers an easy to way to reach their target audience with content that is clearly in demand, as people spend nearly 16% of their digital time watching video.
And a bonus stat for you:
53% of daily users have purchased online or at a traditional retail store because of something they saw on Pinterest. (Ahaology.com – PDF)
It was really tough to narrow down a proper Pinterest stat to represent the power that this platform has. Consider these other insights:
- The average social shopper spends upwards of $140 when referred from Pinterest, more than those coming from other platforms
- Pinterest users are 10% more likely to buy (compared to other social traffic) and usually spend twice as much.
Active Pinterest users are people who are constantly trying and buying new things. They have more disposable income, are early adopters, and social media is ingrained in their day-to-day life. Luckily for brands, they are also incredibly open minded when it comes to connecting with brands. Three quarters of Pinterest users are more interested in connecting with their favorite brands than with celebrities or experts. Companies in food & drink, DIY, home decor, health & fitness and holiday/events markets would be smart to make Pinterest sponsored pins a significant chunk of their ad spending.
If social media advertising is on your radar but you haven’t yet invested a significant amount of time or resources into figuring out if it can work for you, join me on Wednesday, August 26 at LeadsCon New York for “Social Media Advertising: How to Drive Quality + Quantity through Direct Response”.