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Are Facebook ads still worth the investment?

by on October 26, 2018 in Advertising, FaceBook, Latest News, Lead Article, News you can use, Nuggets, Social Media

Are Facebook ads still worth the investment?

There has been an increasing about of frustration mounting about the reach of Facebook sponsored ads. But how does it compare to the other Social Media marketing platforms?

We’ll give you the low down on Facebook ads to let you know where your money is best invested in an impartial guide.

It’s not as though Facebook is struggling to pull in the cash from advertising with many advertisers still opting to use the service. In the last financial quarter, Facebook raked in over $13 million from ads. However, speculation over effectiveness has triggered a new lawsuit to determine whether they actually work.

The lawsuit was filed by as by their understanding Facebook has been misleading advertisers.  This is due to the fact that Facebook made some pretty bold claims that from Facebook you can reach your target audience with pinpoint accuracy, or to be more specific with 89% accuracy.

Yet, when Investor Village invested $1,600 in two Facebook advertising campaigns which were directed at people with incomes of at least $250,000, a college education and an interest in the stock market this wasn’t the case.

It was found that based on the people liking their ads only 40% of those likes were from people who matched the criteria. Given that the service was at least 50% less effective than previously stated, it’s clear that they have a viable case. As will many of the other advertisers using the service.

Remember, that the ability to reach a specific target audience is the reason why Facebook ads have been so highly favoured in the past. Facebook also claims that advertisers can tailor their ads to suit the interests of Facebook users based on information such as where they live, their annual income, the level of education they have achieved, gender and many more key variables which will help advertisers to appeal to them in the best way possible. Of course, not many social media platforms offer this promise.

But it’s not only advertisers that are becoming wary about using Facebook, there has also been a lot of issues with accounts and privacy concerns after the token access hacking which took place in September 2018. Facebook is still currently working with the FBI to try and get to the bottom of the attacks. Unsurprisingly, a lot of people are concerned about their information being used.

Is this the end of Facebook advertising?

Whilst 2018 hasn’t been an especially good year for Facebook, 2017 wasn’t much better for the platform either. A survey conducted in 2017 showed that over 60% of small business had concerns with the effectiveness of Facebook. However, believing a service is ineffective is a whole different ball game from the platform actually going out of their way to mislead advertisers and look more effective in comparison to other ad services such as from Instagram.

Yet, Facebook hasn’t taken too kindly to the accusations, suggesting there is no merit to the accusations made by Investor Village. They have endeavoured with their previous claims that “Transparency is at the heart of our relationships with advertisers.” However, the terms and conditions further explain that Facebook is not able to guarantee each and every time that ads will reach the intended audience. Which is pretty much reversing on their entire stance.

Think of it this way, If sites such as Money Reels gave you the odds on one their casino games like Wolf Gold Slot, as 10/1 chance of winning, but then further disclosed the odds aren’t fixed every time you play the game, would you still expect a fair outcome from the service? Of course not. Whilst everyone should all be reading the small print in everything they agree to and hand money over for, what Facebook has done with its marketing scheme is beyond reproach.

Regardless of the false promises made by Facebook, the platform is still home to over two billion people, readily offering information on their likes and dislikes, where they would like to go and where they have been. It may sound all too good to be true to many advertisers, and it is, because the data which is held by Facebook on its users is now immeasurable because it is so expansive.

On top of the misleading audience reach, advertisers have also noticed the steep price hike of the cost of each ad.  The costs have risen by over 123% in the last year alone, whilst there is a decrease in ad reach by 25% and the stats tell an even more sorry tale for smaller businesses who are even less likely to be spotted in the saturated market.

In a study conducted by Social Media Examiner which asked 3,700 marketers whether they thought Facebook ads were actually effective only 45% believed they were. So, if you feel let down by the platform. It may be time to look elsewhere.

Explore your Options

Pinterest, Snapchat and Reddit are amongst some of your options when it comes to alternative advertising options.

Pinterest is predicted to be the next giant platform. The site allows you to visually arrange images, ideas and boards which are then seen by other users. Pinterest would be beneficial for any company with visually alluring images to use.

Snapchat is the 100% mobile based platform which allows brands to connect with users like never before. Ads will be placed onto the social media platform which will be visible to users with interest in your niche market. Yet your ads will only appear for a short amount of time, adding a sense of urgency to click on the ad through fear of missing out.

Reddit has over 542 million monthly visitors and advertising plans start from just $5, making the platform perfect for small businesses who may not have the amount demanded by Facebook to run an effective campaign.

Google +
If any platform will replace Facebook, it’s Google +. The platform is the fastest growing platform out there today, and it’s not looking likely that the popularity will diminish any time soon. With just over 500 million users, it may not have as many users as Facebook, yet the transparency of the advertising schemes is definitely an advantage point.

There may be growing concerns over Facebook advertising, however it would not be wise rule the advantages of the platform out completely.

Take the time to do your research on which platform would work best for your advertising campaigns. Consider the size of your business and your niche market and come up with a strategy which suits you.

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