Advertising on Facebook is known to be more expensive and reaps a typically lower ROI than other online advertising platforms. Though Facebook offers better reach & targeting for some brands & organisations, it is still advertising that is worth considering.
A report by the international agency TBG Digital (who are in the business of Facebook marketing) has revealed that significant cost savings can be made by directing ad clicks to your Facebook page. Advertisers on Facebook can save 29% of their CPC if the ad directs users to their Facebook page instead of offsite. More impressively, advertisers can save 45% of their CPC if the ad specifically allows users to “Like” the page, again, rather than sending users to your webpage (off-Facebook). – Note that succeeding in obtaining “Likes” will also give you greater influence in Sponsored Stories ads.
It makes complete sense for Facebook to offer this incentive. It encourages advertisers to keep users on the site, exposing them to more ads, and subsequently, persuading brands to improve their Facebook pages & functionality.
While almost all brands and organisations have a Facebook presence, the implication of these findings is that you need to have an excellent Facebook page. One reason why advertisers would rather send traffic off Facebook is because their page is not up to the customer expectation. Users are less inspired to have an experience with a brand that only has the plain Facebook pages & functions. A little investment and plenty of thought is required into a proper Facebook strategy. Only then you would be happy to send traffic to your new innovative Facebook pages and enjoy the lower CPCs.
Read the presentation here.