Continuing on with the Extole blog series, 5 Ways Facebook’s Open Graph Will Impact Your Marketing, today we will look at how Sponsored Stories will replace Facebook Ads.
There has been a ton of skepticism in the market about advertising on Facebook. If everything goes as Facebook predicts, the Open Graph and the increasing adoption of Sponsored Stories will change all of that.
To start with, Sponsored Stories are significantly more relevant than most advertising because friends are endorsing brands and providing social context. According to the latest numbers from Nielsen, recall of messages increased by 55% with social context as compared to an update without social context.
At the same time, targeting of Sponsored Stories is unparalleled. According to Facebook, their targeting reaches audiences with 90 – 95% accuracy, compared to an industry average of 35%.
The results are significantly higher than Facebook Ads. According to TBG Digital, Sponsored Stories saw a 46% higher CTR, and a 20% lower CPC than Facebook Ads.
Further highlighting their importance, Sponsored Stories are the only Facebook ad unit available on mobile. Data from studies by Facebook API providers shows that mobile Sponsored Stories are getting 1.93 times the CTR and 2.65 times the CPM of Sponsored Stories on the web.
If Sponsored Stories play out according to Facebook’s plan, with unparalleled relevance and targeting and higher CTR and conversions, more and more brands will switch their Facebook ad dollars to Sponsored Stories. And, as marketers start to see the improved results from Sponsored Stories, more ad dollars will be allocated to Facebook.
As Sponsored Stories continue to replace Facebook Ads, the Open Graph also allows brands to gain unprecedented insight into consumer demographics, which was featured in our latest blog post in the series. Next week’s topic will cover how the Open Graph will facilitate the convergence of owned, earned and paid media.