Most business owners that sell their product or service online are on social. But many are struggling to grasp what the real value of it is and what it does for them in terms of dollars and cents. This somewhat elusive metric seems to be the focus of all social advertisers. Thankfully, many social networks are making it easier to gather this information.
As you are probably aware of by now, Instagram recently changed the want it displays your feed to you. Instead of being organized by time and date, your posts are now organized and filtered by engagement and relevance. This really isn’t anything new, as Instagram’s parent company Facebook has been using a similar method for many years. On Facebook, the switch turned out to be an advertising play that drove companies to buy ads to stay in front of their audiences.
According to this infographic from Shopify, Facebook currently holds the market share in conversion rate to e-commerce stores.
Marketing Thoughts: The average clickthrough rate for Facebook advertisements is about .90% across all industries. As Facebook and Instagram optimize their platforms for social conversions, more advertisers will flock to these channels. The big question is, how many ads will their audiences allow before they jump ship?
We choose to look at social media networks as an ever-changing terrain. Although there appear to be giants that are here to stay, nobody can guarantee their long-term success. As new platforms come out that appear to be focused on faster, less intrusive experiences, new types of ads must be formed to keep everyone happy.
Facebook recently released the Facebook Canvas ads. Though we haven’t seen too many in the wild yet, we have used them and found great results. These nifty ads allow for what is essentially a landing page to be created right inside the ad. When a user clicks they are instantly directed to this customized landing page built by the advertiser. Currently, these pages are somewhat limited but we expect add-ons to be rolled out in the near future. See an example video of a Netflix ad here.