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Facebook paid advertising – How do you compete with other Facebook pages?

October 19, 2012

Facebook’s free tools

Facebook is a fantastic, free tool for businesses to use to collect information about their customers, to connect with their customers, and to connect with new customers. But, don’t forget that Facebook is a business and it is designed to make money. You can absolutely be successful with Facebook without using any of their paid advertising. However, as I just said, Facebook is a business. If you owned a business, would you give away your most valuable product for free? If you did, you wouldn’t be in business very long.

Facebook offers fantastic opportunities using only their free product – the Facebook page. Facebook also offers paid advertising (their most valuable product). Facebook has been slowly growing their ad platform into one hell of a monster opportunity (seeing as though they have over 1 BILLION users).

Competing with other Facebook Pages

It is ridiculous to think that your business page is the only page that your followers are following. The average Facebook user has 130 friends and likes 80 pages. That means 2 things:

  1. When a follower interacts with your page, it can potentially reach 130 other Facebook users.
  2. Your page is competing with 80 other pages for newsfeed space, as well as 130 people who post their own updates. The average user does not have a huge monitor (many users access their page via mobile phone) and there is only so much space that can be displayed at any one time without scrolling down. Even then, you are still competing for space.


This is a screen shot of my personal Facebook page’s news feed  This is its entirety without scrolling down. You can see clearly that then newsfeed is easily packed with other content and postings. The blue lines border the news feed. There are 2 postings from my friends (Conrad and Nick), and three postings from pages that I have liked (Riley’s Bar, DSM Solutions, and HubSpot).

On the right-hand side, you can see advertisements inside of the red border. This is one version of Facebook’s paid advertising. Those companies have decided what kind of demographic they are targeting. Apparently, I fit into their requirements, which is why I see the advertisements. The benefits of these ads are:

  1. As I scroll down, the ads stay stationary and are always on my screen.
  2. They stand separate from the news feed.
  3. They are targeted to specific demographics.

How does Facebook allow you to compete with other pages, and space on the newsfeed?

Well, I just explained one method. But, there are many different ways that don’t cost money such as contests, promotions, viral content, etc. The more actions (engagement) a piece of content has, the more likely it will show up on the newsfeed of the friends of those who liked, commented or shared the content. But, the most effective (and most valuable) method to compete for newsfeed space is by utilizing Facebook’s paid advertising. READ MORE in detail about Facebook paid advertising.

By using Facebook’s’ paid advertising, you get real-time results and massive amounts of useful data. This data will allow you to experiment and see what sort of offer or promotions your fans are interested in. Find the most popular outliers and tailor your ads and postings to cater to these high-attention keywords or offers.

There are currently four Marketplace Ad types:

  1. Standard Ad (drive traffic to your site)
  2. Like Ad (drive to your Facebook page)
  3. App Ad (drive to an app)
  4. Event Ad (promote an event)

Types of Facebook paid advertising

Facebook advertisements allow you to choose the Cost Per Click (CPC) option and Cost Per Impression (CPM). CPC means that you pay every time someone clicks on your ad. This is very useful for testing multiple ads. If some of them are failures, you pay nothing. If they are successful, you pay an amount that depends on the amount of clicks on the ad. This does not guarantee that the person who clicked on the ad doesn’t hit the back button after they arrive at the ads destination. It simply means you don’t pay unless your ad receives some sort of action. CPM means that you pay to be seen. Facebook suggests the number of views your ad will get, and you pay per view. This is how Facebook describes it:

“CPC stands for cost per click. If you are paying for clicks, you’ll be charged each time someone clicks on your ad or sponsored story. You can only pay for clicks if you choose See Advanced Options when you’re setting up your ad, or if you’re advertising an external website. This is because paying for clicks isn’t as valuable if your goal is to get people to take an action on Facebook. When you pay for clicks, your ad will be shown to the people who are most likely to click on your ad, but who may be unlikely to take any other action such as liking your Page, engaging with a Page post, installing your app, using your app or joining your event.”

“CPM stands for cost per 1,000 impressions. This means you’ll pay when people see your ad. When you set up your ad, your impressions will be optimized so your ad shows to people who are most likely to help you reach your goal. For example, if your goal is to get more people to like your Page, your ad will be shown to people in your target audience who are most likely to also like your Page.”

Stay tuned for more information about how to get started using Facebook paid advertisements.

DSM Solutions

From → Facebook

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