A recent study conducted by AdAge along with Citigroup may have given the answers that advertisers know to be true but it is not likely the type of information that Facebook may want to hear about its advertising platform.
The study revealed that most marketers are doing Facebook ads for brand awareness and building sentiment for their brand. So is this a bad thing? Well, not if you are a major brand with deep pockets and can afford to give the fall back position of “We are branding” as why you advertise on Facebook. When it is being found that lead gen and other hard performance indicators aren’t so great you say “We need to be in front of these people even if they are not clicking through”.
Trouble is that smaller advertisers they usually don’t have that luxury. So what did this survey actually say?
Only about 1/3 of the respondents were hot to somewhat lukewarm about Facebook campaigns as lead generators. This is what the SMB practically requires to be the top of the list no matter how unrealistic that goal actually is for most advertising.
Facebook can likely do fine if they were to become the advertising vehicle of choice for larger brands. But as with most social media players there is the realization that the SMB’s of the world can be the difference between good ad revenue and tremendous ad revenue.
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