Feb 6, 2011

Facebook: cost effective, quality CRM leads

Lots of news recently about advertising on Facebook. Online Media Daily cited E-Marketer data that projects Facebook advertising revenues doubling in 2011.

Yet, on the other hand, an Adweek article last week that Facebook click through rate performance is "abysmal" at about 0.05 percent. Furthermore, the article notes that "The worst performing ad category on Facebook, per Webtrends, was healthcare, which generated 0.011 percent click-through rates and an average cost-per-click of $1.27." That Facebook CTR seems too low for what we've seen, but do not let that deter you either way.

Here is a missing piece of the puzzle: We at The CementBloc have seen that in several major consumer female health categories, that the Facebook click-through leads on pharmaceutical websites are fairly engaged and qualified, far exceeding the goal oriented activity of banner ads on behavioral media networks. However, the Facebook leads are less engaged and goal oriented than either paid or organic search.

What do these numbers mean when put together: A compelling short term Facebook campaign in a high volume consumer health category may let you place 100 million impressions; with ever more demographics on Facebook continually, gaining your large impressions is becoming quite easy. Then your campaign (if having a slightly higher CTR than cited for health) would get 20,000 website visitors for about $26,000. If 10 percent of those attain goals, you have 2,000 highly qualified leads (e.g. registrants or screener takers) at about $13 per qualified lead.

This makes Facebook still more efficient than paid search, and indeed worthwhile considering as a small to mid-scale part of your direct-response consumer marketing mix.