Facebook’s Message To Marketers: This Is Where Product Leads Start
It’s not just about emojis, as the social network is opening up its ‘lead ads’ widely, armed with research showing its connection between CPG brands and key demos.
Although Amazon may be the first place where online shoppers turn to look for products, Facebook is claiming to be the platform that actually spurs important consumer groups like Millennials and Hispanics to go to an actual place and buy a product.
In a sign of confidence that Facebook’s lead ads can be used by marketers large and small, the company is making that product available to all. For SMBs, the use of Facebook’s lead ads could complement the local awareness placements the social network has been building up as well.
“From a targeting perspective, local businesses can choose to advertise just to people in select areas, so they’re able to appeal to a more direct, relevant audience,” a Facebook rep said about the use of lead ads and local awareness. “Also if businesses want to encourage people to sign up for their newsletter, an offer, an event or more information about their product, lead ads simplify the mobile signup process, helping businesses hear from people interested in their business.”
Following its lead ads test in June, Facebook pointed to the results from Land Rover, which reported a “4x reduction in cost per lead,” while Stuart Weitzman saw a 54 percent “more efficient” cost per lead.
Among the new features included in Facebook’s lead ads:
Customizable Questions: Now businesses have the ability to customize lead ad forms with open-ended questions or multiple choice questions, so they receive the info that matters most to their business.
Separately, Facebook Insights, as part of its ongoing audience measurement partnership with Nielsen, has taken a look at “the changing path to discovery and purchase for consumer packaged goods” and found three intersecting shifts that are creating major marketing changes for brands.
In terms of defining “who is the CPG buyer?” Facebook identifies Millennials who are “moving from being ‘young & single’ to ‘married & entering parenthood.
Meanwhile, Facebook also zeroes in on the 55 million US Hispanics and their $1.2 trillion in purchasing power, by noting that this demos’ average basket size per trip is $53 versus $49 for white, Non-Hispanics.
Lastly, Facebook suggests that “light TV viewers” can be considered an intersecting group among Millennials and Hispanics. In addition to being 10 years younger than the heavy TV viewers, this last cohort are more difficult to reach via traditional channels.
Among the other consumer commonalities of all three groups are considered to be more likely to switch from one product to another. Among the stats Facebook and Nielsen have compiled that may be of interest to local marketers:
- 57 percent of Millennials like wandering stores for new, interesting products
- 44 percent of US Hispanics like to change brands often for the sake of variety and novelty
- 77 percent of Light TV Viewers enjoy trying different types of food
When it comes to online & mobile shoppers:
- Millennials are 2.4X more likely than Boomers to search the web first
- US Hispanics are 1.3X more likely than non-Hispanics
- Shop online for daily household items — e.g., stock their pantry, medicine cabinets, cosmetics bag
- Mobile is a constant companion and is also playing a bigger role when it comes to making purchases, as Millennials are 2.7X more likely than Boomers to use their mobile phone regularly for in-store payments
- US Hispanics are 1.1X more likely than Non-Hispanics to wish more stores accepted mobile payments
- Light TV Viewers 1.2X more likely than Heavy TV Viewers to wish they could find coupons in digital form
On discovering new products:
- Millennials are 1.6X more likely than Boomers to use digital channels to discover new CPG products
- Light TV Viewers are 1.4X more likely than heavy TV viewers to use digital channels to discover new CPG products