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Why is Facebook Ads so Expensive?

Published by James Parsons on 10/18/2013 | 1 Comment

Facebook-Ads-so-Expensive

Due to a variety of factors, Facebook advertisements are uniquely expensive. The monolithic corporation has a focused strategy for online marketing that comprises a substantial amount of the company’s core revenue. This overview breaks down the several components that make ads on Facebook much more expensive than other places on the web.

Massive Outreach Capacity

As a website, Facebook receives a massive amount of traffic compared to other internet locations. With millions of individual log-ins every single day, they have cultivated an advertising terrain that cannot be matched. The gigantic conglomerate claims to have a total of 400 million active users. This figure is unmatched among even the most elite web competitors. Ultimately, this may form the largest singular base of motivated buyers available to advertisers anywhere. There are not any physical billboards that receive that much traffic on a regular basis; even further, the eyes that see them are not nearly as interested. This is how Facebook is dramatically revolutionizing the arena of marketing. The company knows that they have a solid base, and they are designing a system to lucratively capitalize on this organization of dedicated clients.

Generating Exclusivity

Cheaper advertising rates would facilitate content that is of lesser quality. High priced promotions generate a field of premium products and services. Because large expenses are intrinsically linked to prestige, demand naturally skyrockets for a brand that can afford to advertise on Facebook. To maintain their superior edge over other wide scale promotion sites, they must continuously raise rates to ensure maximum consistency. Excluding companies that are less monetarily endowed is the only way to guarantee ample space for the top advertisers. With the rates as costly as they currently are, Facebook has still achieved over one million original advertising members.

Filtering Offensive Content

Part of the additional expense goes to eliminating advertisements that might offend certain groups of people. Most importantly, the Facebook wants to avoid making the appearance of political endorsements. Even though the social network hosts pages affiliated with several different causes related to politics, the site itself wants to remain as objectively neutral as they possibly can; otherwise, they could run the risk of alienating a significant portion of their user base. Furthermore, other promotions that they typically need to filter out include depictions of illegal activity, expletives, violence and sexual material. Enforcing these strict standards of decency comes at a rather costly price, but the company clearly has no problem affording the extra investment.

Demographic Targeting

The intricate internal programming allows ads to be distributed among potential consumers based on their expressed commercial preferences. This eliminates wasteful promotion tactics that reach a large majority of uninterested browsers; instead, promoters on Facebook can rest assured that they are appealing to everyone viewing their advertisement. Even if Facebook offers fewer ads for more revenue, advertisers can receive a larger share of clicks in the end.

Mobile Refinement

The social media mogul provides a multifaceted approach to marketing that adds extra tiers to their promotional pricing rates. They have wisely separated their mobile advertisements into a separate category apart from general promotions meant for computer displays. Since many users access Facebook while on the go, mobile marketing can efficiently appeal to real-time needs and desires. At home, people have a tendency to search for long-range interests; however, mobile searches conducted on the go must be useful in the moment. These advertisements have a tendency to yield more profitable results, and they are delivered over a costlier satellite connection. As a consequence, they may be more expensive up front, but tangible consumer intrigue will be quickly garnered through Facebook’s portable interface.

Global Outreach

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Before the internet was invented, a majority of advertisements were limited to specific regions. Online services bridged these gaps around the world, and allowed transactions to be efficiently conducted between two parties from different locations. This technological evolution simply expanded towards its next step with the procurement of Facebook. Before social networking, content on the internet was almost impossible to control. Material that was posted on the web can be distributed in a seemingly random manner, but Facebook as simplified their grasp on globalization to make niche targeting an absolute breeze for savvy advertisers. With acute specificity, promoters can connect to the most receptive users, regardless of their location.

Unique Presentation

Facebook now allows marketers to embed their ads on users’ news-feeds, post on walls and have a full profile. Elsewhere, advertisers do not normally have the luxurious privilege of disguising their promotion as a news update. These sponsored posts can avoid being skipped in the manner that frequently plagues regular advertisements. Readers sometimes might not even realize they are participating in a promotion, but the company benefits from the clicks of every Facebook browser. Hash tags enable a rapid research function by tying in related terms from similar online conversations. Condensing relative information into a catchy phrase is an excellent method to make promotional content go viral.

Interactively Engages Audience

One of the most innovative measures that Facebook applied to their advertising schemes was enabling their users to comment on the advertisements. This tactic promotes wider awareness while facilitating active participation from a field of avid consumers. A willingness to accept public feedback also builds the perception of credibility. Standing the test of market criticism can bolster a brand’s positive reputation for customer outreach. Brief videos can be incorporated, memes can be applied and virtual games can even be used. Connecting with high-tech users on the internet has never been easier.