An interesting article today was posted on Reuters.com about how most comments or ads on Facebook do not sway people’s opinions. It said that 4 out of 5 users have never bought a product as a result of advertising or comments on the site.
Did I understand that correctly? Four out of Five? 80% did not buy?
That means that 20% of the people did!
20% of 900 million people is a lot of people and that equates to a lot of purchases! Maybe something’s wrong with the numbers but I wouldn’t be complaining about that ratio if it’s true.
If you sent out a direct mail campaign, you would be lucky and consider yourself fortunate if you got a 1% return. Now obviously, we’re talking about a slightly different dynamic because it isn’t 20% of any campaign, is 20% of all of them, so we can’t look at it the exact same way.
We actually have to look at it from the perspective of what Facebook IS, and not compare it to everybody else. Facebook is highly social in nature and when businesses try to oversell their products or services, it will result in a backlash of your company. On the other hand, many products and services have been successfully recommended if done in the non-salesy, personal-experience-type fashion.
Google probably has a much better click through rate because that is why people go to Google: to search for things.
That’s not the same on Facebook.
I agree that Facebook has a problem when it comes to figuring out how to properly monetize and increase profitability. The current trend in their stock IPO reflects nervousness the people have regarding its future. I’m going to go out on the limb here and claim that it is worth about $10 a share, but I am not a stockbroker so don’t listen to me.
I have a recommendation for people who want to advertise on Facebook and reap the benefits that can come from it: advertise like you’re marketing to your best friend:
- Think in terms of how you share something with a close personal friend.
- There can be no heavy handedness or deception.
- You want them to be happy with you after the purchase from your recommendation (because they will tell the world if they aren’t).
- Make the recommendations should be personal and subtle.
It was a big deal a couple of months ago when General Motors decided not to continue to advertise on Facebook. There are some who claim that is part of the problem as to why Facebook stock has fallen. All it really reveals is that there are certain products that work better on Facebook than others and apparently big-ticket items like automobiles were on the wrong list.
So what products sell best on Facebook?
The consensus seems to be “impulse buys”. Something you would buy on a whim or an instant recommendation. Automobiles are not an impulse buy for most people. Neither is a house, furniture, vacation plans, cruises or any other high ticket item.
You want to market something that brings instant gratification. Something that makes you feel good or look good and isn’t too expensive. Products that are fun and exciting and geared towards individual purchasing them for their own use and pleasure.
I hate to put a dollar limit on these types of things to back up the suggestionsand I currently do not have any research to back this up, but products that are lower in cost sell much better on Facebook. From $9.99 up to $99.99 is a quick and easy range to think about. I’m not saying that higher ranges will not work, but the lower the better.
Remember, people are not going to Facebook searching for products to buy, these must be impulse buys.
And always remember that Free is an excellent thing to sell on Facebook. It’s a great place for people to join your group for free, sign up for free download, get any kind of free consultations, or watch free demonstrations, etc. Once you get them to sign up or join, you can sell them something later. Just don’t try to sell them on Facebook if its a high ticket item.
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