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> FB still is the only reliable source for advanced targeting of ads. This has massive impact on ROI for performance marketers. A few years ago, a report came
by downandout 11y ago
> FB still is the only reliable source for advanced targeting of ads. This has massive impact on ROI for performance marketers.
A few years ago, a report came out saying that approximately 6% of Facebook advertisers were actually seeing a positive ROI. A more recent survey of small businesses [1] showed that 41% felt they received some positive ROI. These numbers suggest that Facebook advertisers are likely losing billions of dollars per year overall. There just happens to be a large glut of capital out there willing to chase metrics other than ROI right now - things like brand recognition and app installs. Eventually though, some people are going to notice that they are losing money, and the gravy train may at least slow down.
[1] http://www.manta.com/resources/research/social-media-marketing-roi/ http://www.manta.com/resources/research/social-media-marketi...
- ssharp 11y agoA lot depends on how well you can model attribution. If you're measuring last-click, you're going to see a wildly different story than if you can measure the impact the measure of a impression, mid-stream click, etc. I'd guess most small businesses are not invested in developing stronger attribution models, so looking at Facebook spending vs. something like paid search, as apples-to-apples, is going to make Facebook look worse than it likely is. That's not to say advertisers aren't chasing metrics other than ROI, but just calculating an accurate ROI can be something beyond the scope of many.