A study from TBG Digital has suggested that advertisers can significantly boost ROI on Facebook advertising by incorporating social context into their campaigns.
TBG tested social context ads, which list friend endorsements, detailing which of the users friends ‘like’ the specific Facebook page, group, event, or application that’s advertised, against ads with no social context.
The study revealed that social context resulted in a 29% reduction in CPC for advertisers. The data came from a report conducted across 2.8bn impressions across multiple clients within the US market across sectors that include education, financial services, food and beverage, travel and entertainment, social games, retail, and social couponing.
“This is good news for marketers. Not only are these ads often more effective for ad recall, awareness and purchase intent, but Facebook rewards ads that integrate this ‘social by design’ approach with lower prices,” said Simon Mansell, CEO and founder of TBG Digital.
“Advertisers are constantly looking for ways to further their reach on Facebook, while lowering their CPCs and now Facebook is providing a clear way to achieve this.”