Facebook – Re-marketing – Re-targeting | They were doing it all wrong?

In the following article it seems to demonstrate that Facebook has been generating ad sales wrong all along. When Facebook is supposed to be an innovator in the way it produces revenue and provides an ad platform, it left off something that “Other” advertisers have been doing for years. Here is a snippet of what re-targeting is:

How re-targeting works: You visit Warby Parker, the online glasses seller. You look at a pair of glasses you might like to buy. You decide not to buy them right then. You leave the Warby Parker website. Later, on other Websites you see ads with the pair of glasses you liked.  

You see those ads because when you visited warbyparker.com, your browser downloaded a tiny piece of software, called a “cookie,” that told the ad servers on sites using re-targeting that you had previously gone to warbyparker and looked at a certain pair of glasses.

Ads that are “re-targeted” in this way are clicked on a lot, and it’s pretty obvious why. Unlike most ads in banners on the Internet, re-targeted ads are ones that you may actually want to see because they are based on your demonstrated interest in a product.

Because they are clicked on so much—and because those clicks so often lead to sales, re-targeted ads are valuable, and publishers are able to charge advertisers steeper rates for them.  That’s good news for Facebook.

It is now estimated that Facebook could actually fetch 3x more ad revenue using this model and increase the costs for using there advertising. Currently they have selected several agencies to promote this “New” way of doing things, but the jury is still out.

Personally, this is a no brainer, however I think there should be an option as to how you want your ads to appear like with Google. If you only want impressions or clicks, more power to ya, if you want something more robust, they you have to pay for it. Typically as mentioned in the article this ROI (Return on Investment) for re-marketing has been very profitable for most when done correctly.

Facebook Retargeting

Facebook Retargeting

What about the investment factor? My theory, they kept this under wraps to the stock would not flourish “yet”, generate a cash influx  shake out the wanna be’s then infuse this new way of generating ad dollars where the stock will certainly lift in price quickly. The company is BIG and they are here to stay, as you may notice they have already figured out a way to place ads on your news feed with out being ultra intrusive. Those that don’t like this model will need to deal, after all this is a free service, it’s up to you as a business owner to capitalize on something like this for your customers/clients.

Your thoughts are welcome on this…

Read more: http://www.businessinsider.com/facebook-fbx-2012-9#ixzz283JaTGii

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