What do you do when one of your key business models becomes successful? If you're anything like Facebook, you expand on it. The social media giant recently expanded its advertising system, and according to a new benchmark report by advertising retargeting platform AdRoll, it's working — especially on mobile.
Retargeting is an ad tactic that allows advertisers to reach specific demographics and audiences of consumers, tailoring the ads individuals see based on their interests and behavior on the Web. Now, advertisers have two means of retargeting their website audiences with Facebook: through WCA (Custom Audiences from your Website) or the FBX (Facebook Exchange.)
So, what's the difference between the two?
First, FBX works only on desktop, whereas WCA works on both desktop and mobile devices, though it focuses on mobile. FBX uses two kinds of ads: Right-Hand Column (RHC) ads are smaller, less costly ad units that appear on the side of the page. News Feed ads are inserted into a user's feed and resemble Facebook posts from the pages and friends that the user follows. WCA ad formats also include News Feed ads in the form of Page Post Link ads, which help drive traffic to other websites, and Mobile App Install ads, which send users to their phone's app store to download an outside app. [ Once Upon a Time: Successful Online Ads Tell a Story ]
The new retargeting system seems to be paying off for advertisers. Gokce Cozen, marketing manager at online learning platform Udemy, said that after one day of running ads on the Facebook News feed via AdRoll, his business saw a 600 percent increase in conversions.
AdRoll's study showed that the CPM (the advertising cost per thousand views) is 57 percent lower for News Feed ad impressions on mobile than on desktop, while the CTR (click-through rate) is 10 percent higher. This makes the CPC (cost per click) 61 percent lower on mobile. In other words, you'll probably get more bang for your buck with mobile ads.
Over the course of the study, News Feed impressions on mobile grew from 0 percent to 6.5 percent. Based on their study's sample, mobile ads through WCA now account for 8.25 percent of all News Feed clicks.
But if you want to make the most of these options with your business's Facebook ads, combining both mobile and desktop campaigns may be the way to go. The report showed that by adding mobile to an existing Web retargeting campaign, including desktop News Feed ads, advertisers see on average 29 percent more clicks.
The apparel, beauty and technology industries seem to be adapting to Facebook's new ad system the fastest. However, the media and entertainment industries tend to serve the highest-performing mobile campaigns, according to the report.
AdRoll looked at over 800 million impressions from 215 different AdRoll advertisers running campaigns on WCA and FBX, as well as on other Web sources outside of Facebook. The study examined campaigns over a period of three months.
Originally published on Business News Daily