Facebook Newsfeed Ads Work for Retailers

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Here’s a very good report  from Nanigans about the effectiveness of Facebook newsfeed ads for retailers.

facebook newsfeed ads

 eMarketer.com produce this chart and summarizes the study:

For retailers paying for ad placements on Facebook, there are two questions: Do they actually get consumers to click? And convert? Nanigans, a Facebook advertising-software company, studied more than 975 million Facebook ad impressions served to US consumers who would generate more revenues than they cost to acquire.

While ads in the sidebar performed poorly, garnering only a 0.04% clickthrough rate among high-value Facebook users, page post ads in the newsfeed saw a clickthrough rate more than 46 times higher, at 1.87%. ROI was also 14% greater for ads in the newsfeed, according to Nanigans. In addition, the cost per click in the newsfeed was less than one-third of Facebook domain ads.

While Google has owned the local search landscape for years (and still do) maybe it’s time to take a closer look at what Facebook can do for your local retailers.

Changing your co-op fund rules to encourage digital outputs will save you and your retailers money and increase your exposure to very valuable consumers.    For years we’ve recommended putting local digital dollars into Google local search and not to worry to much about the alternatives.

It’s time to add Facebook to the mix.





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