By: Jamie Lintner, BDX Advertising Accounts Manager
We have all read the analysis about the low click-thru rates for Facebook advertising. Webtrends in particular has documented a downward shift from an already low click thru rate (CTR) over a span of three years, from a .063% in 2009 to a .041% average in 2011. This is half of the comScore recognized click thru average for all online display advertising — .10%. But what would the data look like if we were to measure the CTR of display ads against a previously engaged individual who already has some level of trust with a brand?
In Q4 of 2012, Facebook launched a new Ad exchange that allows for advertisers to bid for placement in a real-time fashion. In order to avoid the historically low performance that Facebook has shown, we at the BDX have taken the exchange one step further and are now offering builders the opportunity to retarget visitors to their website and run banners with specific messages for those visitors. Similar to our BeBack program, we will cookie a builder’s site but will then retarget them only against the Facebook platform. These resulting ads fall within the same positions as a direct buy, with the same dimensions and specs and at the same cost, but they produce click thru and conversion rates that trump those of a non-retargeting campaign. For example, in January, we ran our own internal campaigns and discovered that the CTR is roughly nine times the average of Facebook’s overall average with an incredible lift in backend conversions.
Not only that, but the results are just as strong when compared to traditional retargeting efforts. Here at the BDX we manage our own internal retargeting campaigns across 50 unique markets as well as unique BeBack retargeting campaigns for around 100 home builders. Without fail, a retargeted user is 10-15 times more likely to convert on the backend than one with no knowledge of the brand. Facebook ramps that up to another level. A user who has been on a particular site and has actively engaged with it is roughly 30% more likely to convert through the Facebook exchange than a typical retargeted user. While we were previously content with our cost/lead for retargeting, Facebook has provided a robust channel where we receive incremental traffic at a higher conversion rate. These numbers are hard to ignore.
Moving forward, as an added perk for BeBack advertisers we are now offering an additional campaign across only the Facebook exchange in order to improve backend lead conversion and drive clicks across a previously un-utilized platform. For additional information on how to set this up, please contact info@thebdx.com for additional details.