Facebook Advertising Surges in 2011

By Sandy for chiprang.com  (For Guest Posts Please Refer Terms ) In traditional media advertising, costs are generally dictated by rate ca...

By Sandy for chiprang.com  (For Guest Posts Please Refer Terms)

In traditional media advertising, costs are generally dictated by rate cards, which in turn depend on the size and placement of ads, as well as the duration of the advertising run. In new media, or digital media, advertising costs are a little more difficult to estimate as there are more variables to consider. For instance, advertising on a particular website can depend on the age and authority of the site – older, more established sites tend to command higher prices than new sites.

You can negotiate advertising on a one-on-one basis with your chosen site or you can use a go-between. Go-betweens include digital and social media marketing agencies, but they can also include search engines, like Google and Bing.

Search engines allow for paid ads in the form of pay per click (PPC) ads, which appear in search engine results pages (SERPs), and display ads via AdSense. AdSense ads appear on certain websites, as determined by Google. Websites sign up for AdSense accounts which allow Google to place relevant ads on relevant pages. Site owners earn passive income every time an ad is clicked, while advertisers reach a wider audience.

PPC ads appear in SERPs when users search for relevant search terms. Site owners bid on key words and phrases. The price of terms depends on the level of competition – the more competitive the terms the higher the price. But price also depends on site quality, which is determined by myriad factors.

Advertisers need to look beyond search engines and websites, however, as social media platforms govern more people’s lives. Facebook has over 800 million active users; Twitter has around 100 million active users. Around half the users on both networks log in every day. It’s no wonder that advertising on social networks has become so popular.

Popularity relates to demand and demand dictates price. According to a recent report released by Efficient Frontier and cited by Forbes, Facebook ad prices are going one way: up. Between Q2 and Q3 in 2011, the cost of Facebook advertising increased by a whopping 54%. Efficient Frontier predicts a further increase of between 30% and 40% in Q4.

Then there is mobile advertising. All cell phones, from the very basic phones that pretty much allow only text messages and phone calls to high-end smartphones, provide an avenue of opportunity for advertisers. People carry their cell phones with them all the time. Some people even go to the bathroom with them. Tablets provide another avenue to reach consumers. Tablets are particularly popular with savvy business people who need to stay in touch while on the move. All of which means that target audiences have never been more accessible.

SMS or text ads abound, but really smart marketers are creating ads specifically for smartphones and tablets. These include display ads and multi-media ads.

Traditional media may or may not be on the way out, but one thing is for certain; unless you have a digital advertising strategy, you’re going to be left behind.

About the Author: Sandy writes for a number of different blogs, on a number of different topics like advertising rate cards, travel and the environment.

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Chiprang-Blogging, Technology and Lifestyle Blog: Facebook Advertising Surges in 2011
Facebook Advertising Surges in 2011
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http://www.chiprang.com/2011/10/facebook-advertising-surges-in-2011.html
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