Facebook has been finding its legs in the social media advertising space by pushing its engagement features.
Far more important, however, is the early success of Facebook’s new self-serve display ads.
We had a conversation with a search ad agency this morning who said Facebook’s self-serve display ad product is growing nicely and is causing some advertisers to move some of their search ad budgets to the new self-serve display ads.
- A small per cent of the search agency’s clients (but “more than a handful”) are now using some of their search budgets on Facebook’s self-serve display ads. This is money that would otherwise have gone to Google and Yahoo.
- Facebook campaigns can be ultra-targeted. An example used was the ability to target “Americans that are married or engaged and are avid flyfishers.” You can’t do that on Google.
- With targeting like this it’s no wonder that Facebook’s performance and ROI metrics like CTR, CPA, and conversion are rivalling and in some cases exceeding search.
What does this mean? This is just one company (and we’ll be following up with other agencies on this), but its an important datapoint that underscores the following:
- Facebook has developed a new product that could be a mega-hit with advertisers. If the early success continues (and we don’t see why it won’t), self-serve display ads could do for Facebook what AdWords did for Google.
- Facebook’s self-serve display product not only threatens to steal display advertising dollars from competitors but search dollars from Google and Yahoo as well.
To see how Facebook’s self-serve ads work, here’s a quick demonstration >
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