Dusseldorf Online advertising is cheaper than it has been for a long time. This shows insights into Facebook’s advertising business and thus into one of the largest advertising platforms in the world. Especially companies that now have to decide without the help of media agencies whether and how they will still spend money on marketing in the crisis should know the corona effects observed there.
A data set about the advertising market in Italy was leaked to the Handelsblatt Facebook doesn’t want to comment himself. But the effects described are understandable and also allow conclusions for the German market. Here are five things you can learn from the data.
First, ads currently cost little
Facebook advertising spaces are not sold at a fixed price, but auctioned in real time. Advertisers can bid on various metrics, including the one thousand contact price. The question is how much they are willing to pay to reach 1,000 people in their target group. Which bidders come into play ultimately depends on how many users in the respective group are on the platform at the selected time. If the number of users increases, more bidders will be awarded the contract.
The data set from Italy shows: During the first eight days of the lockdown, when the Italians had to stay at home, the thousand contact cost on average only about 1.35 euros – well below the 30-day average of 1.70 euros.
However, when the first curfews in ten cities in northern Italy were announced on February 21, the minimum bid was still over EUR 2.40. Despite lower budgets, advertisers can currently maintain or increase their reach online.
Second: budget should be limited
But be careful: the price per thousand is the minimum price, so to speak. Those who offer too much will pay more than necessary these days. Lower bids are worthwhile. In addition, advertisers should be careful to limit their budgets. Otherwise it can happen that your advertisement is shown to a lot more people than usual. Again, this can lead to significantly increasing costs.
Third, quick answers save the business
Facebook data shows that Italian products were shunned by international customers during the curfew. This may have to do with concerns that the companies may have production and delivery difficulties. Because the numbers also show that companies that responded quickly to customer inquiries via social media were able to continue doing business.
This should also apply to German companies, which now have to cope with the effects of the virus crisis: they have to signal that the business is running again and again. Customer service is more important than ever.
Fourth, advertising can backfire
According to Facebook statistics, most travel providers and automobile companies have frozen their advertising budgets under the exit restrictions. The other providers in these segments are also advised not to buy advertising. Because for some products in their categories, the revenues have fallen by more than 50 percent, it says in a comment.
Advertising strategist Djenna Wehenpohl from the Jung von Matt agency explains it like this: “The Facebook algorithm is also not adjusted to the changed customer behavior.” If customers indicate that the goal of their Facebook campaign is that users actually clicked on their ads, the algorithm is presumably wrong : People who normally take a close look at every cruise offer are no longer interested in it. So the advertisers paid for nothing, says Wehenpohl.
Fifth: It’s time for unpacking videos
The better companies put themselves at home with their customers, the better their advertising works. Facebook data shows: Keywords such as “at home” and “delivery” boost sales. So-called “unboxing videos”, which show how shipping packages are unpacked, also hit the nerve of consumers.
More: Network operators such as Telekom, but also platforms like Facebook are to provide the EU with data to follow the development of the corona pandemic.