Founder, Althea Systems
A good CPC campaign on Facebook could get a click-through-rate (CTR) of 2-3 per cent -- comparable to the best AdWords campaign. I think FB uses real-time customer click-through data to spread ads. For example, if I click on XYZ ad (on FB) to land on XYZ's FB page, I will be asked to click on the 'like' button. FB then uses the combination of 'click-through' data and 'like' data to target my other friends and show them same 'XYZ ad'. As more friends click on 'XYZ ad' and its 'like' button, the CTR will improve.
Director, MS Advertising
Further, large ad formats would be intrusive in the social environment of 'conversations'. Brand metrics to measure RoI and the efficiency of 'likes', 'shares', 'fan pages' and 'events' are still evolving with benchmarks that need to be set. Privacy is also a big concern.
Brand owners need to be aware that small formats, tiny images and peripheral placements on the page don't allow them the flexible and impactful creative palette they need for a true brand advertising. So, while Facebook might have a slight edge, the marketer is smart enough to know its limitations. Portals such as MSN provide huge RoI by helping build a long-term engagement.
Co-founder, Ad Magnet
FB -- and social media -- will be used in a way that is different from search or display. It will be more 'relevantly' targetted. While there might be some money that may move to FB from display advertising, the move will be more from the direct marketing budget. Consumers are using platforms like FB to do things for which they used other platforms (e-mail) in the past.
Founder and CEO, ODigMa Consultancy
FB ads versus search ads: CPC and cost-per-lead (CPL) is less on FB (up to Rs 40) compared to ads (Rs 150) on prominent search engines. Unlike search engines, where keywords related to domains like travel, finance and luxury goods are priced high, there is little price disparity in the average CPC bid offered by FB for categories.
FB ads versus display ads: FB offers targetting opportunities based on gender, age, date of birth, location, occupation, education and company. With innovative concepts like FB Places, 'Check- in' ads and 'Social Ads' (suggested stories), FB is set to explode.