Monday, October 19, 2009

Facebook Ad Strategy based on "demand generation"

Today WARC (World Advertising Research Center) announced a new Facebook Ad strategy to be focused on "demand generation" purchase stage, meaning that brands are expected to get higher awareness when there's obviously a higher demand rate.

Social networking platform, accounts at the moment for over 300 million users worldwide and is only predicted to grow in the future. Moreover, Sheryl Sandberg (chief operating officer) reported that around half of Facebook audience visits its portal at least once a day.

There's an interesting comparison on the Avarage Time Spent on Site per month: WARC reports that the typical user spends 5.8 hours viewing material hosted on Facebook each month, compared with the total of 3.3 hours recorded by Yahoo, ranked in second place on this measure.

Also, according to some analysts, at the moment there're over 1 million accounts opened either in-house or by third prties to promote certain brands. Sandberg confirms that the Web 2.0 initiatives from corporate perspective have multiplied more than compared to this period a year ago. For example, below is an example of one of many Starbucks's applications on Facebook:

Facebook's Ad strategy aim is to reach as many consumers as possible, thereby creating consideration and demand, while the bottom delivers the final purchase (Saindberg, WARC).

It's interesting that Google, serves those at the latter stage of this process, and who are interested in looking for a specific product, while Facebook aims at those at the beginning.

Moreover, there's a number of social networking platforms, such as VKontakte (Russia), Hi5 who aim at contextual advertising. Thus, in case a group member would show an interest in a certain product during the group discussion, he would immediately receive invitations to accept other groups related to the product/service mentioned. Obviously, this approach reflects a more of a "push" method, rather than harnessing consumer experience, which leaves question marks in front of the effectiveness of contextual advertising on social networking platforms.

Would be interesting to find out in the future more advertising solutions offered by social media and search brands worldwide.

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