Facebook - A Waste Of Money?

[quikshop]

I found this article interesting about General Motors decision to end advertising on Facebook because of a lack of response.

I trialled Facebook PPC marketing about 18 months ago and got some traffic and no return on the investment. Compared to Adwords and targetted banner advertising it was a huge flop.

Since then Facebook might have improved its targetting algorythms but I cannot see how advertising on free to use generic social media could possibly result in an increase in sales.

By far a more productive approach is to build a network of 'friends' for your brand to keep them informed of product releases, offers etc. And guess what, that costs you nothing except time

 

[TheBlogshop]

I personally think the problem is the fact Facebook is a personal, social resource and people use it almost exclusively for this purpose - they don't go there to be sold to.

When you're searching for something in Google, there's every possibility that you're looking to buy something, want more information on something or you want a quick answer to your question, which is why Adwords works so well.

As you suggested, focus on using Facebook to build up your social presence, but think twice if you're looking to it to fulfil your PPC needs.

 

[LoyaltyCardNetwork]

Facebook is good for social proof.

Facebook is like branding, you may only see the benefits in the long term but you can't measure them. You can spend a lot of money getting fans but you won't make any money back in the short term. If you keep updating your facebook with interesting things so that your name shows up on people's feeds and they start remembering your name, then they will remember you and it will pop up in their head and they may come and buy something from you.

So in the short term, yes it's a complete waste of money, in the long term (assuming you have a good facebook campaign) it can give you benefits.

 

[Daniel.ChannelGrabber]

I am not really that in to Facebook stores but I do think a Facebook presence is a good thing, if a little bit time wasting.

I have had experience with PPC on Facebook and it isn't very good for most things. It can be good however for certain things though because you can target your ads and as long as what you are selling is highly target-able and has a broad appeal then it would be worth it.

You could market your internet dating site for Manchester professionals to men aged between 40 and 50, who live close to Manchester, who are single, who have a specific job and other things that help you identify who would see your ad and be interested.

It is hard to do this with products but the ones that would do well are gadgets that are new or a bit different as they have a broad appeal.

Using Facebook just to keep a presence going can work, one that I have seen in the past and quite liked: http://www.facebook.com/CraftsbyCharlie?ref=ts

Charlie has done well. He puts his new products up there, he interacts with his customers and has a really great product that he makes himself. He is 18 and has a great story about starting his business at a very young age and it is appealing to read and thus works well on Facebook.

PPC is different to Facebook stores. The stores are a complete waste of time. They are a gimmick and a way for eCommerce companies to con you in to thinking it is the next big thing to earn money from it. Just take a look at all the big stores who discontinue their Facebook stores and speak to anyone with one and they will tell you how poor they perform.

If you bother spending time doing Facebook then make sure you have a bit of an idea of what you hope to achieve. Then you need to ask yourself honestly if you think it will make you back the amount of money you put in to it. I would hazard a guess that for most people it would never make back the money but would be fun and interaction with customers is always good but personally I think there are better ways.

 

[mikey101]

Does anyone have a view on the reliability of facebook's ppc tracking? It has been very inconsistent with the google analytic stats. That's my polite way of saying that, based on my experience so far, it feels like I have been completely ripped off.

 

[Websitehandyman]

I found an article too, don't know what it's worth but I like these info-graphics they ARE FUN !

http://www.wordstream.com/articles/facebook-vs-google-display-network

 

[SourChocolate]

Hi there,

we've had a fan page on FB for a while and it's been rather a brand building exercise rather than a good and converting traffic driver. A few weeks ago, we've assigned a small budget and run a PPC campaign. Pretty generic, the purpose was to drive traffic to the page and get new fans. Targeting, age, location - all great & brilliant.

It's driven new visitors and new "likes" (apparently, people can "like page" from within the ad without even visiting the page which I reckon is rather pointless but ok). Anyway, the curve on FB analytics sky rocketed. Great. After a few days and about £100 spent (~£0.50/click), I started looking closer at those new "fans".

19 in 20 are fake accounts. Opened very recently, having exactly the same history and activity - apparently, they love to "answer questions" and "change their cover picture" regularly. Nothing else. I'd believe they might be genuine but if you see that 100 accounts who liked our page look exactly the same, no friends, pretty random images etc. - it's a no-brainer something is not quite right.

I'm really puzzled because I can't understand who would be interested in generating money for FB, except FB themselves? On the other hand, I can't believe FB do that to earn their billions? Who then and what for??

Anyway, this is our second approach to the FB ad platform and second (very) disappointing experience and a simple conclusion money can be spent more efficiently elsewhere.

S.

 

[LoyaltyCardNetwork]

Hi there,

we've had a fan page on FB for a while and it's been rather a brand building exercise rather than a good and converting traffic driver. A few weeks ago, we've assigned a small budget and run a PPC campaign. Pretty generic, the purpose was to drive traffic to the page and get new fans. Targeting, age, location - all great & brilliant.

It's driven new visitors and new "likes" (apparently, people can "like page" from within the ad without even visiting the page which I reckon is rather pointless but ok). Anyway, the curve on FB analytics sky rocketed. Great. After a few days and about £100 spent (~£0.50/click), I started looking closer at those new "fans".

19 in 20 are fake accounts. Opened very recently, having exactly the same history and activity - apparently, they love to "answer questions" and "change their cover picture" regularly. Nothing else. I'd believe they might be genuine but if you see that 100 accounts who liked our page look exactly the same, no friends, pretty random images etc. - it's a no-brainer something is not quite right.

I'm really puzzled because I can't understand who would be interested in generating money for FB, except FB themselves? On the other hand, I can't believe FB do that to earn their billions? Who then and what for??

Anyway, this is our second approach to the FB ad platform and second (very) disappointing experience and a simple conclusion money can be spent more efficiently elsewhere.

S.

Did you use a system such as addmefast.com? If you did then you are likely to end up with lots of fake fans. Try searching on youtube for 'addmefast' to see why.

 

[simonswords]

Good article here from a guy in Ireland who tried Facebook ads - http://www.thejournal.ie/readme/column-i-put-my-family-business-on-facebook-here’s-what-happened/

In short, for businesses Facebook will most likely raise your brand awareness, but don't count on it for driving sales as people on there are not engaged in Facebook to do/buy something.

 

[profscooter]

Agree with the above. All Facebook ads have ever got me is more "likes", not aware of any direct sales although awareness of my business may increase over time. Likes are very very slow to increase if I don't advertise, which suggests to me that the basic Facebook premise that people pick up an interest in products from their friends is largely incorrect.

 

[quikshop]

So the consensus appears to be that Facebook is a useful free marketing tool to enhance brand awareness and build a brand community, but their PPC paid for advertising is not much better than pointless.

Tell me again why its worth $100 billion on annual revenue (not profit) of $4 billion?

 

[Aqueous]

Tell me again why its worth $100 billion on annual revenue (not profit) of $4 billion?

Dave, clearly it's not. The markets have reacted against it and those of us who cried 'lastminutedotcom' before hand have been vindicated.

Ads on Facebook are simply an interruption of the reason I went there in the first place. It is the marketers ideal 'mass customisation' model but for that reason it just won't work. When it gets to the point that you can target to within a gnats whisker you need to be sure that you are catching people at the time they want to buy, and frankly FB is not that time.

 

[SourChocolate]

Did you use a system such as addmefast.com? If you did then you are likely to end up with lots of fake fans. Try searching on youtube for 'addmefast' to see why.

No, we didn't - what's the point? Also, I think these "systems" "like" your page from within the page, not ads... ?!?

So the consensus appears to be that Facebook is a useful free marketing tool to enhance brand awareness and build a brand community, but their PPC paid for advertising is not much better than pointless.

Tell me again why its worth $100 billion on annual revenue (not profit) of $4 billion?

Well, quite a few people believe it is if they were prepared to back it up with their own(?) money.

 

[Websitehandyman]

Hi there,

we've had a fan page on FB for a while and it's been rather a brand building exercise rather than a good and converting traffic driver. A few weeks ago, we've assigned a small budget and run a PPC campaign. Pretty generic, the purpose was to drive traffic to the page and get new fans. Targeting, age, location - all great & brilliant.

It's driven new visitors and new "likes" (apparently, people can "like page" from within the ad without even visiting the page which I reckon is rather pointless but ok). Anyway, the curve on FB analytics sky rocketed. Great. After a few days and about £100 spent (~£0.50/click), I started looking closer at those new "fans".

19 in 20 are fake accounts. Opened very recently, having exactly the same history and activity - apparently, they love to "answer questions" and "change their cover picture" regularly. Nothing else. I'd believe they might be genuine but if you see that 100 accounts who liked our page look exactly the same, no friends, pretty random images etc. - it's a no-brainer something is not quite right.

I'm really puzzled because I can't understand who would be interested in generating money for FB, except FB themselves? On the other hand, I can't believe FB do that to earn their billions? Who then and what for??

Anyway, this is our second approach to the FB ad platform and second (very) disappointing experience and a simple conclusion money can be spent more efficiently elsewhere.

S.

I don't think your ever going to get genuine people to befriend your company from an advert and I suspect that's why Facebook advertising is a waste of time for that. It's a bit like advertising your customer services department.

Social networking is about PR mostly and creating a sense of trust, giving people a human face etc etc. If you company is not outward thinking or just want to take money for goods then the last thing you want to do is advertise of Facebook. Because the last thing most people want on their is adverts. You need something to really pop to get those clicks.

If however you want to build your Facebook page up to a more creditable looking place with higher count of fans / likes then the are systems that can do that for you. They won't all be people really interested in your business but if you use the right system you can define the features of those people like where they live, age, how long they have had a facebook account and how many fans they have. This is what most celeb or "wanna be" pop star agencies use to reach silly levels to maintain credibility with their target audiences.

 

[ecenica]

Tell me again why its worth $100 billion on annual revenue (not profit) of $4 billion?

Hype.

With the share closing a little above $34 I wonder if FB's underwriters are still propping it up?

Rich

 

[EddyP]

I wouldn't call it a waste exactly, there are certain brands that do better on Facebook than others.

Smaller products, soda's and drinks are particularly good, do well through FB ads.

Most people don't buy cars on Facebook, so it may not be the most effective form of advertising in the first place.

 

[James Greg]

I don't think so that facebook is the waste of time. Facebook is very reasonable source of social media.

 

[sightvisit]

I think if you have product that needs explaining, FB can help you engage with your customers and bring you to the front of customers minds. If you are a specialist and you don't just move boxes from A-to-B and take a cut, you can use it to answer questions in a constructive and positive way. It is time consuming though and for that reason I don't rate it as the highest priority when going pursuing sales online.

 

[LeeSon]

it depend on how you use

 

[Thinehost]

Here's a link to a post on another forum about facebook ads:

http://www.sowpub.com/forum/showthread.php?p=30923

So Facebook works only if you are already popular. Or have competitors who are popular.

The gist of the post is that you should use facebook ads in two ways; firstly, if you're already well known, get these people to like your facebook page and interact with them on facebook (eg new products, etc) or target your competition's customers, especially if they have already built up a good following.

The full thread is quite an interesting read and I'd be interested to know how you react to it? I did try facebook ads but that was long before Ankesh wrote this post. Like others, my advertising bombed - but I like the idea of targeting the competition, so may save this in the marketing idea bank for later this year.

Margaret

 

[webgeek]

While not every client offering is a great match for Facebook advertising, I have seen firsthand a number of companies doing very well using Facebook ads to drive leads to their website.

In those cases, the Facebook ads cost less per click and less per conversion than Google. They may convert at a lower rate, but the reduced cost per click more than makes up for it.

Most of those positive examples are advertising on Facebook for B2C.

The B2B campaigns I've seen have been much better at building exposure, giving social signals, and generally raising awareness and trust levels by being engaged and demonstrating thought leadership.

In closing - just because it didn't work for you doesn't mean it won't ever work.

 

[quikshop]

I have seen firsthand a number of companies doing very well using Facebook ads to drive leads to their website.

In what industries?

 

[Postmanpat55]

I personally feel Facebook is better suited for personal friends...in case of business, it may generate some awareness but not much conversions.

 

[GeorgeM]

It seems to me that first Facebook was designed and invented....then the owners wondered how they could make money from it. That's not unreasonable, but it does mean that since the FB system was not designed as a business development tool, its success at this is at best likely to be questionable.

It's a social communication tool, built by a university student - and its been specteculaly successful at doing that. Start plastering it with adverts and promotions and there's a big risk the current users will just move onto somewhere else.

OTOH just let them get on with viral marketing things they like to each other and it will continue to succeed.

 

[ITsoldUK]

In answer to the OP's question.

Yes, if you blindly advertise without thought or planning.

No, if the demographic fits and you are getting an expected ROI from your BP's and MR.

An example from my venture...google adwords would be a waste of money for my business but my direct marketing through research that allows me to present a solution to an issue works a treat and excels my forecasts month on month...

Others would say DM doesn't work or is poor but IF you target it right, it can work.

 

[webgeek]

In what industries?

The industries I've seen working well recently include:
1) UK Software as a Service (B2B awareness campaign)
2) UK/Global Professional Training (continuing education and certification exam preparation)
3) Mobile Phone Accessories (breakeven short term ROI, but great way to build a client list for resell/upsell)
4) Solar equipment for homeowners

 

[spicetheice]

If you are only looking at advertising on Facebook to get your leads or to build a presence, then its a sheer waste of money. There are so many other things you can do for free on Facebook, that running an ad and getting "Likes" or "Fans" should be the secondary target.

First of all, check what are your goals and then advertise on Facebook. I am not saying that it doesn't work. In fact, ads on Facebook have given me some of the best CTR and my CPC is very low. One of the campaigns I ran, had a cost per lead of $0.50 and we got around 500 leads through that campaign.

Another thing to remember is that you should make the correct use of the available targeting options on Facebook. Narrow it down as much as possible to your target audience and you will see favourable results.

 

[Rhea Riis]

Hi Dave

I don't agree in the point that there's no raise in business using facebook ads.
Try to add affiliate marketing to your marketing strategy. We have professional facebook publishers who promote your business. It's up to you to define the t&c's. The risk lies on the publishers, not on you.
Typically they use automated business marketing aps or direct linking URL's to your page or spend time on creating targeted strategies. Some use the same strategy as you mentioned above- but it's not your time

You're welcome to try it out on partner-ads.com. No fees, no risk. Only performance based.
Best regards
Rhea Riis
Partner-ads ApS

 

[Websitehandyman]

Hi hi I just got sent this article with a graphic on Social Network advertising, I might in fact print it out as a poster

http://www.businessinsider.com/social-media-marketing-landscape-complicated-2012-5

 

[DotNetWebs]

..just because it didn't work for you doesn't mean it won't ever work...

I couldn't agree with your more and have been saying the same thing on here for years.

I have also been saying that the much-chanted mantra of "facebook users are not in the mood for buying" is a over-used and misunderstood cliché.

Lets look at one of the examples given in this thread:

http://www.thejournal.ie/readme/column-i-put-my-family-business-on-facebook-here’s-what-happened/

...pretty boring business-to-business industrial sector: packaging...

...an older chap of nearly 60, I am no spring chicken and readily admit that I have great difficulty in ‘getting it’. But everything I read about maximising your web presence and impact told me that SMEs must integrate and embrace social media, especially Facebook...

...I sent around emails with links to the pages to my children, younger staff members and anyone else I could think of, asking them to ‘like’ my new pages...

...Once my helpers stopped liking, I had expected the viral phenomenon of Facebook to generate more...

So a 60 year old who admits he doesn't get Facebook and has a 'boring' B2B product has believed the hype and thinks that Facebook is something he must 'embrace'.

He then asks all the young people he knows to 'Like' his page who duly oblige.

But then he is disappointed that his childrens friends haven't got excited about his packaging product and turned it into a viral phenomenon.

I don't think ANYBODY that truly understands Facebook would expect this to work yet the conclusion drawn is that Facebook will not drive sales to your business.

Facebook is not the answer for every business and I don't think PPC is the best approach, but I know many businesses that are doing very well out of Facebook and for many of them it is their most effective form or marketing.

Regards

Dotty

 

[spicetheice]

Facebook simply connects you to a whole LOT of people across the globe through a single platform. But is your business really what they want? It would be a good idea to understand if it is worth spending all the money and wasting efforts on Facebook rather than focusing on some sites, which might offer better results than the top social media sites. There are pages and businesses which have failed miserably because they thought that Facebook is a magic wand which will turn their business into a money maker overnight!

 

[DotNetWebs]

FB is definitely a waste of money and time.

Well that's that then. Debate over

Regards

Dotty

 

[seeingISbelieving]

Just because something doesn't work for them, why are people quick to criticise without due cause? For the benefit of this thread, I have recently been made aware - by several notable web developers both in the UK and USA - of many highly successful business's, large and small, who make almost their entire income from Facebook. Some of their methods are simple yet extremely lucrative.

It's a plan of action I am looking to implement very soon, and I just wish I had entered social media markets many years ago with my products. Off-line, I have endured a succession of large companies go bust owing me tens of thousands of pounds which I will never get.

On-line shopping increases percentage wise every year, both for service industries and retail. How anyone can say the social media market, which has billions of views every day, is a waste of time is beyond me. Implemented correctly, Facebook, Twitter, YouTube, etc, can be the most lucrative source of income you will ever find.

As the old saying goes; it's not what you do, it's how you do it!

 

[DotNetWebs]

Just because something doesn't work for them, why are people quick to criticise without due cause...

Unfortunately is seems a common trait on this forum in recent years, especially from anonymous keyboard warriors.

Ironically I am increasingly finding Facebook (and blogs & other social media that require true identities) far more relevant than this forum for exchanging such ideas.

Regards

Dotty

 

[WJP]

Just because something doesn't work for them, why are people quick to criticise

Because it couldn't possibly be anything to do with them...
















could it?

 

[WJP]

It seems to me that first Facebook was designed and invented....then the owners wondered how they could make money from it. That's not unreasonable, but it does mean that since the FB system was not designed as a business development tool, its success at this is at best likely to be questionable.

By that same logic, Google would be, at best, questionable as a tool for business development...

 

[DotNetWebs]

By that same logic, Google would be, at best, questionable as a tool for business development...

Yes and as I said in another ones of these threads: You could say the same about the World Wide Web and the Internet.

Regards

Dotty

 

[Rhea Riis]

Hi folks

I work for an affiliate network, Partner-ads, and talking about facebook and social media ads, I like drawing your attention to the possibility of affiliate marketing. We have publishers, who work very professionally with facebook.
They use different approaches to crate sales there and many of them are happy about automated business marketing aps for this media.

I see the following advantages in “outsourcing” the social media marketing activities to an affiliate network:
- the merchant clearly defines his conditions
- it’s the risk of the publisher to buy ads if they choose this approach
- the publisher spends time on building a distribution channel for example via “friend-groups”, like you mentioned at the beginning.

It has shown out that social media ads can be another source of income for a long raw of business sectors as long they are willing to forward the responsibility for the strategy to their publishers.
We only work performance based, so the branding effect, the visits etc. has not been taken into account.
If Facebook is a phenomena or a long lasting success I’ll leave up to you to decide. But our merchants have got benefits through it

Rhea Riis
Partner-ads.com

 

[quikshop]

Well that's a sharp turnaround to this debate, suddenly lots posting about how successful its been for other businesses they "are aware of"

I want to hear from a business owner who has qualified their return on investment in FB PPC advertising, not from agencies with vested interests or band-wagon monkeys.

To date I have yet to meet a single online business owner who can quantify a measured financial return on any FB marketing.

 

[DotNetWebs]

...I want to hear from a business owner who has qualified their return on investment in FB PPC advertising, not from agencies with vested interests or band-wagon monkeys...

If you are including me in that list I did say:

...I don't think PPC is the best approach...

Regards

Dotty