Sunday, June 9, 2013

Advertising Made Easy

            Google and Facebook are great places for brands to start advertising.  Both platforms have self-service ad interfaces that are easy to use and manage in-house.  Google search accounts for 66.5% of search share, out of 20 billion searches a month (McGee, 2013).  Using Google Adwords is a quick and easy way to start showing up in desired search results.  Facebook is also a great place to advertise.  As of the end of 2012, the average time spent on Facebook a month was 6.75 hours (Fox, 2012).  With consumers spending so much time on Facebook, it is a perfect place for marketers to reach consumers. 
            Both platforms offer easy self-service interfaces and have no minimum spend requirements.  Additionally, both Facebook and Google ads work because they are native ads. “Native advertising is advertising unique to a particular site or platform” (Macdonald, 2013, para. 2).  This is why Google and Facebook ads are successful.  The ad format is similar to the design of the content on the page or platform.  This type of ad is unobtrusive is more likely to be viewed than an ad that would disrupt the content and look out of place.  For example, if you Google “landscaping”, the paid ads look similar to the organic results that populate.  On Facebook, the ads that appear in the newsfeed are formatted to look similar to ordinary posts.
            When using Facebook to advertise, it is important to keep in mind how Facebook ranks its content.  Facebook uses their algorithm, called Edgerank, to rank posts featured in the newsfeed.  Edgerank is based on three primary factors: affinity, weight, and time decay (Al-Greene, 2013).  Affinity measures the relationship between the user and the content creator.  The more a user interacts with that person, the higher the score.  Weight is based on the type of content posted.  Facebook gives more weight to photo and video posts than plain text updates.  Finally, the time content is posted is factored into the equation.  As a post ages, it loses value, so the newsfeed focuses on the most recent information.    
            Due to Edgerank, only 16% of fans will see a post on average (Al-Greene, 2013).  This is an extremely low percentage of fans that will see organic posts.  Facebook ads allow brands to target fans, friends of fans, or users based on other specific interests.  With this targeting, ads are able to reach a larger percentage of users.  Without Facebook ads, most brand organic posts will never be seen.
            Facebook is not the only platform to use an algorithm.  Google uses a unique algorithm to rank search results, for both organic and paid.  Google’s ad rank is based on two factors: quality score and bid.  Bid is the maximum cost-per-click a brand is willing to pay.  Quality score is a measurement of how relevant ads, keywords, and landing page are to a person seeing an ad (Google, 2013).  A higher quality score can lead to lower prices and higher ad positions.  For example, even if Brand A has a higher bid, but Brand B has a higher quality score, Brand B’s ad will win the auction and secure a higher position for a lower cost.
            Overall, both Facebook and Google are great places to implement targeted, relevant ads that reach consumers in a non-obtrusive way.  With the easy-to-use interface and no minimum spend requirements, any business, small or large, can immediately take advantage of these advertising opportunities.    

References
Al-Greene, B. (2013, May 7). What is Facebook Edgerank and why does it matter?. Mashable. Retrieved on June 9, 2013 from http://mashable.com/2013/05/07/facebook-edgerank-infographic/
Fox, Z. (2012, November 28). This is how much time you spend on Facebook, Twitter, Tumblr. Mashable. Retrieved on June 9, 2013 from http://mashable.com/2012/11/28/social-media-time/
Google. (2013). Adwords support. Retrieved on June 9, 2013 from https://support.google.com/adwords/answer/140351?hl=en&ref_topic=24937
Macdonald, R. (2013, January 2). Why native ads matter. Digiday. Retrieved on June 9, 2013 from http://www.digiday.com/publishers/why-native-ads-matter/

McGee, M. (2013, May 15). Bing rises above 17% search market share as Google slips [comScore]. SearchEngineLand.com. Retrieved on June 9, 2013 from http://searchengineland.com/bing-rises-above-17-search-market-share-as-google-slips-comscore-159746 

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