Add3 – Digital Marketing Agency with offices in Seattle & Portland

the huge opportunity for effective social media advertising

Massive Numbers in Social Media

On average, Facebook reels in 890 million daily active users who post 55 million status updates per day, spend about 21 minutes per day on the site, and of whom 53% report using the site to learn about or discover new products, brands, and services. And that’s just Facebook. Those figures have marketers across the globe drooling for a slice of the social pie and recent ad spend data and projections show exactly that.

2015 social media advertising platform usage statistics


That’s Billion with a B

The US spent roughly $5.1 billion on social media advertising in 2013 and that number is forecasted to jump 194% by 2018 to $15 billion. Gone are the days when social advertising was considered experimental and ineffective. Corporations and advertisers alike are now putting their ad budgets where their mouths are and heavily investing in what has become the New Ad Frontier. Improvements in the ability to measure and track performance, as well as targeting, aesthetic, and mobile enhancements have proved that social is the medium to reach desired users.

Multiple Platforms = Multiple Opportunities to Reach Your Audience

the average internet user has 5.54 social media accounts


The average user actively maintains nearly 6 social media accounts. Sound too high? Think about it. You have Facebook to keep in contact with college friends, Twitter to keep up on the news and sports, LinkedIn for professional networking, Instagram to share photos of your delicious dinner, Tumblr to please your artsy side, and Snapchat to share ugly selfies with your best friends. Each one of those platforms offer advertisers the unique ability to convey their relevant message based on what the site already knows about you.

Advertisers have the ability to target using information like life events, age, gender, interests, employers, consumer habits, and Internet history. This type of granular targeting has never been available before in any medium, but arguably the most surprising and attractive aspect of social advertising is the accuracy of user data since most of it is self-reported.

Effective Social Advertising Reaches the RIGHT People

The challenge that most social advertisers face is not how to reach people; rather, it is how to find and reach the right people. As social advertising becomes more popular and budgets explode, there is more ad spend wasted than ever before.

The value of social advertising is becoming more apparent and prices are increasing as performance, targeting, and reporting continue to improve. The average cost-per-click on Facebook increased 24% in 2013 while the cost-per-thousand impressions jumped a whopping 140%[1]. As a result, it has become easier to blindly waste valuable marketing dollars on campaigns that are too broad.


Through systemic refinement of ad creative, copy, placement, and targeting, advertisers cannot only reach the right users, but the ones who are most likely to convert. Due to social media essentially operating in real time, marketers are able to quickly test theories, analyze performance, and apply learnings to additional tests, campaigns, and user groups.

We applied this practice to one of our clients in the healthcare industry and the results were quite astonishing, as you can see in the graph below.

Case Study: Facebook Advertising Campaign Optimization

Add3 Case Study: Facebook Advertising Campaign

Click for larger. Note: due to Facebook’s conversion attribution model, the conversion rate may be greater than 100% since actions are counted when they occur within 1 day of a user viewing or 28 days after clicking on the ad. Thus, the inclusion of 1-day view through conversions may inflate the conversion rate.

A Quick Analysis of our Facebook Advertising Case Study

Our team took over an existing campaign early in January, analyzed performance and implemented optimization improvements (middle of the chart).

While spend (blue) remained relatively consistent throughout the 3 month duration, the conversion rate, or efficiency of spend (red), went through the roof once we applied the aforementioned optimization practices. You may notice the significant drop in website clicks (grey). The drop in clicks would be a cause for a concern unless you realize that once we identified the group of users that are most likely to convert, we were able to target those users and users similar to them to get a better bang for our ad-buck.

Although the cost-per-click increased due to a more refined target group, nearly every other performance metric improved!:

  • 154% higher click-through-rate
  • 289% higher conversion rate
  • And 6% more conversions
  • While spending 28% less than a comparable campaign, representing a 32% decrease in cost-per-conversion

In other words – it’s OK to spend more per click and generate fewer clicks if your goal is to drive actual conversions. Our Facebook campaign optimization effort was more effective because we focused on reaching the RIGHT people.

Beyond #TransformationTuesday

As the social media landscape continues to transform seemingly by the minute, its proven effectiveness in reaching relevant users and driving down conversion costs proves it to be a viable medium for every marketer to consider.

Want to explore social advertising for your brand? Add3 offers social media advertising services.

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Chris Kerrin

About Chris Kerrin

Chris Kerrin is an Account Manager at Add3 and has quickly learned the ropes of social advertising since joining the team in 2014. When he’s not busy driving his clients’ social KPIs, Chris enjoys traveling, vying for the office ping pong crown, upholding his sometimes unhealthy addiction to sushi, and rooting on the Arizona Wildcats.

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