Sunday, 21 August 2011

How Effective is Facebook Advertising

How Effective is Facebook Advertising

With over 175 million people signing into Facebook everyday, most of whom spend several hours per day browsing Wall posts, commenting friend’s pictures, and uploading content, many companies are trying their hardest to take advantage of Facebook’s enormous number of page views by placing advertisements on the right-hand side of the Facebook user interface. However, many companies are now questioning whether Facebook advertisements or effective or not.


On one hand, Facebook advertising is effective because Facebook matches its ads to the user’s interests, based on their wall posts, pages they look at, and pages they “like”. Because of this, users only see advertisements for things they are genuinely interested in instead of seeing random advertisements that are being paid for, but not attracting any users. Likewise, if a user actually enjoys a webpage he/she sees because of Facebook advertisements, he/she can request similar ads to be displayed by “liking” the ad.


While pop-ups annoy the user and Google AdSense clogs webpages, Facebook advertisements are non-intrusive because they are off to the side of the Facebook user interface. This allows users to see advertisements through peripheral vision, but the advertisements do not interfere with the user’s activities. Because of this, users do not get annoyed at Facebook advertisements like they do with many other websites who try to force the user to see ads. By not upsetting the user and presenting advertisements in a way that is interactive but not intrusive, users are much more likely to click on ads.

Tunnel Vision

Although Facebook advertisements are intuitive and non-intrusive, they actually have a much lower CPM, or Click Per Million, rate than most other websites. This is because of a factor known as “banner blindness”, a form of tunnel vision in which users tend to subconsciously ignore banner-like information like advertisements. This phenomenon affects all age groups, but is much more common in younger Internet users, and is caused by simply getting used to seeing and ignoring web-based advertisements. While pop-ups and flash-based advertisements are annoying, they tend to be clicked on more than non-intrusive advertisements because they force the user to look at them.

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