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As we continue to look for ways to bridge the gap between Facebook likes and consumer spending, it's important to see how much social media is affecting potential customers.
A new infographic by CouponCabin and Column Five Media takes a look at just how much influence social media has on consumers, and what types of companies people are more likely to be loyal to.
Click-through rates on Facebook ads have increased 50% over the past 12 months, according to data from Marin Software.
It also found that the cost-per-click of social ads increased by 26%, while the CPC of marketplace ads decreased by 26%.
Marin said the improvement in CTRs is thanks to Facebook’s new social ads, such as Sponsored Stories.
These ad formats are targeted based on brands that you and your friends have ‘liked’, which Facebook says makes them more relevant.
Facebook, which is fast-headed towards a record-breaking IPO, is betting a lot on Sponsored Stories.
It's clearly counting on the paid ads, which appear in the news feed and perhaps most importantly, be displayed to mobile Facebook users, making them the company's first mobile ad unit ever.
Facebook has launched a marketing classroom that aims to help businesses build their presence on the social network.
It features video demonstrations, livestreamed events and worksheets that focus on areas such as Sponsored Stories, as well as how to measure and improve ad campaigns.
The first live learning event is scheduled for Thursday afternoon at 5.30pm GMT and is entitled ‘Exploring the New Facebook Pages’.
In the run-up to its IPO, Facebook is pushing down on the gas pedal in an effort to bolster the advertising business from which it derives much of its revenue.
Yesterday, as expected, the world's largest social network announced its new ad offering, Premium on Facebook. Those ads give advertisers more options and an ability to make their ads more prominent, but the jury is out on whether users will simply find them annoying.
Facebook is trialling new Sponsored Story ads that promote content using new user actions, such as watching a movie or listening to a song.
It is the latest development in Facebook’s ad platform using Open Graph actions that allow brands to use new verbs to describe what a user is doing beyond just ‘liking’ a product or service.
In the test advertisers can pay to promote stories about a user reading an article or listening to a song even if they do not own the app in which the action was taken.
Facebook will increase the distribution of its 'Sponsored Story' adverts by dropping them into the real-time ticker that sits in the upper right-hand part of a user's homepage.
Launched in January, Sponsored Stories promote friends' interaction with brands, such as likes or check-ins.
Facebook may or may not have some tough competition in the not-too-distant future, but right now, Facebook is at the top of many brands' lists when it comes to digital marketing initiatives.
Increasingly, that's proving to be a double-edged sword.
With more than a half a billion users, Facebook knows an awful lot about an awful lot of people. And all the data it collects is no doubt a gold mine.
But sitting on a gold mine and actually being able to extract the gold are two very different things. Although Facebook's revenue has grown rapidly, its effectiveness at monetizing each of its users lags well behind other prominent internet companies like Google.