Analysis Of Social Media Ads: How Effective Are Advertising Placements In Facebook & Co.?

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Advertisements now playfully fit into the news feed of social networks. The large social networks such as Facebook, Youtube, Twitter and Instagram allow companies to invest extensive media budgets in their advertisements. With advertisements, companies can reach almost any target group and thus draw attention to their channel, brand or products. The big question marketers ask themselves is: Is the advertising budget well spent? Do these advertisements also bring the hoped-for effectiveness with them? The Content Marketing Institute has now published a study that provides answers based on a survey of 3,714 marketers. 

 Many companies are placing more and more advertisements on social networks such as Facebook or Twitter. B2B and B2C companies have very different preferences when it comes to channel selection. An advertisement on Facebook is not necessarily as effective for a B2B company as it is for a B2C company. However, a new study now shows that advertising placements bring overall success and which platforms B2B and B2C companies prefer. Surveyed marketers provide information on their use of promoted posts, advertising campaigns and the trend of sponsored posts.

Social Media Ads And Promoted Posts Are Effective!

Evaluations of this study confirmed that advertisements are enjoying ever greater popularity, precisely because of their effectiveness. 263 B2C marketers could be identified among the respondents. Of these, 76% use promoted posts and 74% place advertising ads. When asked how they rate these advertising instruments, 61% rate the promoted posts and 59% the advertising ads as very effective. According to information, these two measures rank in the marketing mix of companies with a share of the overall effectiveness of 20-30%. The success values show a significant increase compared to 2014.

 In the eyes of B2C marketers, Facebook is the most effective platform for advertising, followed by YouTube and Twitter. Despite the recent activation of advertisements for companies in September 2015, Instagram is already in fourth place.

Differences Between B2C And B2B Marketing

The two areas assess the effectiveness of the platforms differently. In the B2B sector, LinkedIn ranks first in comparison, followed by Twitter and YouTube. Facebook only ranks 5th with an effectiveness of 30% in contrast to LinkedIn with 66%. The advantage here is clearly in the seriousness of the user groups. Users move on Facebook with a basic expectation of entertainment, whereas LinkedIn users are looking for business opportunities and cooperation partners.

Due to the significantly larger number of B2B marketers in the survey, it can be assumed that B2B companies have so far focused more on the possibility of advertising placements than B2C companies. A total of 93% of B2B marketers rely on advertisements, more than 50% of them on both promoted posts and sponsored ads. According to the respondents, these instruments are twice as successful for B2B companies as traditional banner advertising.

 Which Social Media Platform Achieves The Best ROI?

Regardless of whether they are B2B or B2C companies, executives from a total of 29 companies have been asked to give platforms a grade of A + to F with regard to the return on investments in paid advertising. Including the three big platforms, Facebook, LinkedIn and Twitter, as well as the newcomers Instagram, Pinterest and Snapchat. Facebook clearly gets the best rating here with B +, which is due to the highly developed targeting options, which are highly valued by marketers. Pinterest, which receives the grade B behind Facebook, in turn benefits from its proximity to e-commerce and the user’s intention to buy. The newcomers Snapchat and Instagram are still a bit behind here. The reason for this is probably that until recently, Snapchat had a minimum advertising budget of $ 700. On Instagram, the launch of advertising campaigns via Facebook’s Power Editor is too recent to give an objective assessment.

Bloggers, Instragramers and other influencers are more sought after than ever before, also among marketers. Due to the strong influence that social media bloggers have, brands or products can be ideally placed here. In this way, companies can make ideal use of the reach of bloggers.

In fact, a sponsored post about influencers is much more effective than advertising with celebrities, according to an analysis by the Halverson Group. Of the 511 marketers who were asked about sponsored posts, every second company plans a separate budget for this. No other marketing tactic is accepted as intensely by users of all social media channels as the sponsored post, according to the statement of over 1000 surveyed social media users.

Advertisements are enjoying increasing popularity among marketers in both the B2B and B2C sectors. Advertisement formats are already so variable and integrated into the feed that they are more and more readily accepted by users, which leads to increasing effectiveness. However, both industries must be aware that users with different intentions are on channels and that each industry must therefore identify the right channel for itself. Due to the flexibility and the differentiated targeting options, Facebook is the advertising platform par excellence for evaluating the return on investment. However, the young channels like Snapchat are also stepping up. In the future, in addition to ads campaigns, sponsored posts will also play a major role,


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