The Truth About Facebook Advertising: Is It Still Viable?

By on April 20, 2011

A lot has been said about the recent Facebook advertising cost increase, which shot through the roof as soon as Facebook realized what a goldmine they had created. Because Facebook is still really the only social network big enough to pull off CPC ads, they have recognized and capitalized on this monopoly.

So, is advertising on Facebook still worth it in the long run, or will you be wasting thousands of dollars on adverts with poor conversion ratios? Let’s look at the facts.

1. The Facebook Advertising Process is The Same

Before the massive boost in pricing, Facebook was hailed as ‘the future of advertising’ on the internet. And indeed, it still is. In 2010, 50 billion banner adverts were shown on the platform, which made the advertisers billions of dollars.

Despite much speculation over the increased costs, you can still limit your budget and bid on CPC advertising views. It might cost more for your clicks, but your returns don’t depend on averages or statistics, they depend on the effectiveness of your own ad campaign.

2. Facebook Advertising is Not Like Google Adwords

Yes, the process is the same, but the platforms are different.Facebook advertising is still a toddler wondering around the house, learning how to walk. Google adwords on the other hand has been around for ages.

They know the deal, and you know what? When more people started using adwords, Google hiked up their prices too. Because the platforms are different, people’s responses are different – as they should be. They are busier on Facebook, so of course the ads are going to have a lower conversion rate!

What do you really have to look at when you’re searching Google, other than adverts? Few websites demand as much interaction as this social network does. But it’s that very interaction that will make Facebook advertising worth it one day – or now if you figure out targeting and learn how to use it properly.

3. The Current Value of Facebook Adverts

If you’re looking to send thousands of people to your sales page or website, you will have to spend a lot of money building up your fan base, or investing in CPC ads on Facebook. Instead, go with Google adwords. But if you want to boost your brand on Facebook, there’s nothing better than a Facebook ad.

Many small to medium sized businesses don’t see the value in advertising on Facebook yet. If you can’t see the value for your business, then don’t do it– or even better, test the waters. There is no hard and fast data out there that can tell you how well your business will do if you launch a Facebook ad campaign. It’s up to you to get the campaign up and running, to see if it’s worth your time.

So, is Facebook advertising still a viable option for your business? We’d say yes. It is the future, and eventually it might even rival adwords. For now however, take the data, reports and stats out there with a pinch of salt. The last thing you want to do is ignore a Facebook ad campaign that could seriously boost your business. Use discretion, and investigate!

Has your Facebook ad campaign been successful? We want to hear about it!

About John Souza

John Souza is founder and chief strategist of SMMU and Social Media Impact, and is a bestselling business author. He won the 2011 Tech Marketing Awards ‘Social Media Marketer of the Year’ and most recently the About.com Reader’s Choice Award for Best Online Education Site. John has appeared on The Michael Gerber Show, and his business has been honored at the Mashable Awards, Forbes Business Awards and The Stevie Awards.
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