Facebook over the past decade has become of the world's largest Social media companies with an astounding monthly user base of more than 2 billion. With a reach so extraordinary, and frequency that's hard to match, it's no surprise that 92% of marketing firms actively advertise for their clients on Facebook. Besides its power, Facebook also is an extremely cost-effective and efficient medium. Budgets on Facebook start as low as an (admittedly laughable) $1. Regardless, wherever you set your Facebook budget – $500 a month, $1,000 a month, or even $10,000 a month, the visibility you achieve, along with the transparency and efficiency, will always successfully go toe-to-toe with legacy media such as print, radio and television.
With such relatively low cost and potential opportunities, what is the best way to reach consumers through Facebook? This article will touch on two answers to that question. First, we will look into the free organic method, and then we will see the approach that's replacing traditional organic, and delivery substantial, measurable increases in efficiency and ROI.
Facebook and Organic Reach
Facebook offers a feature that allows its users to market to consumers using the free pages and profiles. Known as "Organic Reach," this method has historically been an excellent resource for many organizations. However, with the explosion of content being shared on Facebook, organic reach has seen a steep decline in marketing effectiveness and reach – now down to less than 2%.
According to Facebook Business, the decline is the natural result of the increase in organic content and the response of the algorithms that control which content is displayed on the consumers' newsfeed. To get even more niche specific, today, less than 4% of the people who "like" a dealership's Facebook page are actually seeing the organic posts.
Here's how Facebook explains it: "Your business will see much greater value if you use Facebook to achieve specific business objectives, like driving in-store sales or boosting app downloads." Without the proper insight, organic reach can quickly dwindle to - literally - nothing.
Although it is possible to create a focused and profitable campaign with Organic Reach, the important question is, Will Organic Reach provide the best results for your dealership?
Using AI to increase reach on Facebook
In today's competitive market, in which all businesses are intensifying their use of Social Media, you need a focused, data-driven approach to efficiently reach prospects in your PMA using Facebook. Leveraging the right data to target a likely-to-buy audience is the most cost-effective form of stimulus marketing to drive people to consideration.
One strategy is to upload your own data sets to yield the best results. For example, using an AI platform like eVe™, with Reanimation™ which can analyze the current data available and reclaim inactive data to increase reach. With ePush! Reanimation™, dead, lost, unsold CRM data is hygiened and updated and, along with other deployment channels, is uploaded to Facebook to re-engage your prospects via carousel ads.
eVe™ identifies website visitors while monitoring their activity across all databases to identify who is entering and/or actively engaged in shopping for a vehicle.
Using data sets such as these to create your automotive marketing Facebook campaigns offers considerably lower CPC and CPM than other traditional forms of internet marketing such as programmatic and RTB. Facebook data shows that its carousel ads "yield a 30–50% lower cost-per-conversion and 20–30% lower cost-per-click than single-image link ads."
Facebook carousel ads also give you the strategic advantage of on-the-fly updates so the ads never go stale. First, the ads are selected to best represent your sales and inventory goals, and then are updated daily as the vehicles sell. Clicks on carousel ads always go to a live vehicle, never to a dead page where a vehicle once was but now is gone.
By pairing eVe™ and the Reanimation™ data to generate custom audiences, you can expect your Facebook carousel ads to achieve more than a 2.5% increase in click-through rates and cost per clicks as low as $0.15 (fifteen cents!). You'll see a noticeably better ROI compared to using organic reach, programmatic, RTB, or other internet display ad approaches.
To learn more about increasing sales and ROI with Social Media, contact us today
Want to maximize your Facebook automotive strategy with video? Check out our "10 Awesome Tips to Create Facebook Video Marketing Success!"