Says o ne ad exec if yo ure an advertiser theres no

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Unformatted text preview: than trying to pro mo te co nsumer go o ds that o therwise o f f er little allegiance, but ef f o rts are so new that metrics are scarce, impact is to ugh to gauge, and best practices are still unclear. Facebook Ads: Massive Upside and Huge Growth Co ncerns o ver Facebo o k’s ad mo del were undersco red when gro wth slo wed in the two quarters prio r to the f irm’s IP O.H. Blo dget, “Well, No w that Everyo ne Has So bered Up, Let’s Figure Out What Facebo o k is Actually Wo rth…” Business Insider, May 21, 2012. Fo r all these challenges and limitatio ns, ho wever, Facebo o k advertising had gro wn at a rate strikingly similar to Go o gle’s early ad gro wth trajecto ry.Eric is a f o rmer student o f mine. His sto ry has been co vered by many publicatio ns, including J. Zappe, “MBA Grad Seeks Jo b with Micro so f t; P o sts Ad o n Facebo o k,” ERE.net, May 27, 2009; G. Sentementes, “‘Hire Me’ Natio n: Using the Web & So cial Media to Get a Jo b,” Baltimo re Sun, July 15, 2009; and E. Liebert, Facebo o k Fairytales (New Yo rk: Skyho rse, 2010). There are several reaso ns f o r this spectacular gro wth. First is the advertising appeal o f precise targeting. Large advertising netwo rks have tried to meticulo usly track users to develo p a pro f ile o f their demo graphics, likes, and interests. At Facebo o k, the site kno ws all abo ut yo u because yo u’ve to ld it the details—yo ur age, the things yo u’re enthusiastic abo ut, where yo u live, yo ur relatio nship status. This o pens up all so rts o f targeting o ppo rtunities to even the smallest o f advertisers. In o ne example, a wedding pho to graphy studio targeted ads at wo men aged 24 to 30 who se relatio nship status was engaged—that’s like sticking a f lier in f ro nt o f precisely everyo ne yo u want to reach and no t wasting a dime o n anyo ne else. The f irm, CM P ho to graphics, repo rts that just $ 600 in Facebo o k ads resulted in nearly $ 40,000 in revenue.M. D’Ono f rio , “So cial Netwo rking Sites Using New Advertising,” BrandingIro n, No vember 18, 2010. Ano ther key co mes f ro m lever...
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