With a recent valuation of more than $100 billion and an IPO that aims to raise around $5 billion on the horizon, Facebook needs a viable monetizing strategy and needs it fast. Looks like it may have settled on one.
Facebook is beefing up its advertising products and though this is a move that will put the company in a position to make out rather nicely, social marketers also stand to benefit, particularly those with Premium accounts.
Introducing the Reach Generator
From what we have been able to gather, the biggest advantage of having a Premium account on Facebook is all in the recently launched Reach Generator. You probably know this, but not every update you post is not seen by every fan. In fact, statistics show that on average, a page’s posts are seen by less than 16% of its fans. The Reach Generator is a new tool that solves this problem by increasing the visibility of your content. According to Facebook itself, this feature guarantees that your posts will be seen by 75% of fans each month.
The cool thing about the Reach Generator is that it serves as the perfect complement for ad products like the new Sponsored Stories, which allows brands to use updates and other activity as promoted content. So for instance, as a social marketer, you could take one of your most popular posts, turn it into a promoted story, and ensure that it is seen by a much greater portion of your audience than what was possible with previous ad formats. The fact that the stories appear in the user’s news feed with other updates makes them less intrusive and ultimately, more effective.
Sponsored Stories have a lot of potential, but a Premium account on Facebook does not limit you to a single format. It also gives you access to the other new ad products, which include Premium Offers. Similar to the deals offered by daily deals sites like Groupon, Premium Offers provide a way to treat your audience to exclusive discounts and promotions. Upon accepting an offer, a user receives an email complete with the offering business’ physical address so they can redeem what is waiting for them in person. Unlike the other new formats, this one lets you create offers free of charge. A Facebook rep says Premium Offers can help brands triple their ROI.
Exclusive Advertising Options
A Premium Facebook account, coupled with the Reach Generator makes for a powerful combination. Why? Because through the Reach Generator, you have access to all of Facebook’s new ad products, including news feed ads, mobile news feed ads, and the intriguing option that allows you to display advertising content to user’s at the log-out screen. And while it does not let you select the format, it does optimize your efforts by using your best performing updates as sponsored content.
Facebook advertising is not for every social marketer, but for those equipped with a budget, a Premium account could be the way to go.