Facebook Video Ads: What’s the ROI?

With the variety of common products available, often customers want to learn how a product or service works before purchasing. With more and more buyers using mobile devices to shop, 4 out of 5 shoppers say a video showing how a product or service works is important in their decision to purchase or not purchase a product or service. In fact, shoppers report research on mobile devices with visual content helps inform their product selection. As a result, Marketers who use video grow revenue ~49% faster than non-video users. But if a brand is going to use video, understand that shoppers of shoppers expect a consistent set of visual content across desktop and mobile devices.

Where does Facebook come into this equation? Over 100 million hours of video per day are watched on Facebook. (Techcrunch) It is reported that shoppers who view video are 1.81 times more likely to purchase than non-viewers and more than half of the marketing professionals worldwide name video as the type of content with the best ROI.

With over 1.5 billion users, ~1 billion users visit Facebook on their mobile device, so brands considering must think mobile first. What sets Facebook apart from its competitors is its unique ability to harvest vast amounts of customer information to create custom audiences, generate leads and build brands. The advantage is that it’s all within a platform that is already known for its engagement opportunity.

Facebook also  rewards advertisers for shares with cheaper views, cheaper clicks, and more impressions. This combination leads to an overall better ROI. The net-net is that retailers & brands should be seriously considering video advertising because advertisers cite a 40 percent increase in purchases as a result of video – specifically in the categories of apparel, home goods, and electronics.

While there seem to be many advantages, some businesses are holding back on video advertising because they feel video is too hard to make, or doesn’t produce conversions the way other ads do. But video content does not need to be difficult to create. There are vendors that make it easy, like Animoto. And attribution to video ads is easier often than TV ads because of the digital footprint.

Brands should also use the analytics Facebook provides and make sure to not waste budget by not segmenting your audience. Segmenting audiences can be done by looking at jobs, life events, relationship status, purchasing behaviors and additional segmenting can be done beyond this, for example geo-location targeting. Without segmenting an audience, marketing risk wasting their ad budget on the wrong audience and not generate the conversions expected.

In addition, as in any advertising, it’s important to include a call-to-action. A call-to-action can be as simple as Book Now for travel, Learn More for addition features on a product, Contact us for more information or Shop Now to be taken to the actual online store or landing page or a click-to-call button. But be careful – a call-to-action without engagement can result in consumers feeling “pushed” vs “pulled” into taking action. Include special offers and time sensitive, last minute deal to motivate consumer to come to a store, call or click.

If Marketers use a click to call button, make sure the contact center is ready to take the calls and knows what the special offers are. Consumers seem to prefer to call than fill out a web form and call convert to revenue 10X more than web leads. That is only true if there is someone at the other end of the phone to take the call intelligently. This means Marketers must ensure the ad copy and landing pages are optimized to drive calls and that they can attribute calls and the outcome to the right ad campaign so you can do more of the right thing and optimize the video marketing.

Dr. Natalie Petouhoff, VP and Principal Analyst, Constellation Research

Covering Customer Facing Applications

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