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BizReport : Social Marketing : April 15, 2014

Brands: Why Facebook ads may not be a cure-all

With so many consumers in the social space brands need to be there, too, right? Yes, and no, according to one expert who says that while a social network presence may be of benefit for many brands, paying for social advertising is likely not.

by Kristina Knight

Ted Dhanik, President of engage:BDR, notes four problems with Facebook advertising: click fraud, ad costs, targeting issues and lack of organic reach. According to Dhanik, engage:BDR clients are reporting that upwards of one-third of clicks on their Facebook ads are coming from bots rather than actual consumers. Couple that with high CPMs and lack of targeting and many aren't getting their money's worth on the advertising.

"Facebook is making it even harder to reach people without shelling out for these expensive placements. Brands' organic Facebook reach is crashing. In March, a new study from Ogilvy found that the reach of organic posts had declined from 12.05% in October to just 6.15% in February--and the study says a source from Facebook hinted that organic reach will approach zero in the foreseeable future," said Dhanik. "Brands that have relied on organic reach will be pressured to pay for ads. This extra demand for Facebook inventory will spike prices even more."

Where, then, should brands take their ad dollars? Dhanik believes the smart marketers will take another look at premium inventory - which can be found all over the web because so many advertisers are pushing more ad dollars into social.

"A lot of inventory from comScore Top 1000 Publishers is available and more affordable--you just need tools to appraise it accurately. Good DSPs rely on billions if not trillions of data points to predict the ROI of each buy, so you don't have to play a guessing game," said Dhanik.

More from engage:BDR and Dhanik later this week, including how brands can make the most of ad placements.

Image via Shutterstock

Tags: engage:BDR, Facebook ads, social marketing, social network ads

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