Advertising on Facebook has changed
As a business owner in Australia, you know that effective digital marketing is essential for your success. One aspect of digital marketing that has become increasingly important in recent years is social media advertising. It’s what we call “interruption advertising”. Users aren’t searching for your products, but you’re able to put it in front of them. The two major players in this field are Facebook/Instagram and TikTok. Keep reading and we’ll cover what you need to know about how Facebook advertising has changed over the past two years, as well as how TikTok differs and is gaining market share.
Over the past two years, Facebook advertising has gone through significant changes. One of the most noticeable changes has been an increase in cost. According to a report by AdStage, the average cost per click (CPC) on Facebook increased by 90% in 2020 compared to 2018. This increase in cost during the Covid era has made it more difficult for businesses with smaller advertising budgets to compete. Facebook has also introduced new ad formats, such as video ads, augmented reality ads, and playable ads, to keep up with evolving user behavior and making it more difficult for the unskilled advertiser.
To improve the quality of ads on the platform, stricter ad policies have been implemented. Examples are the prohibition of ads promoting the sale or use of tobacco products, drugs, religious beliefs and weapons. Ads that violate Facebook’s policies are not approved and are taken down. If you have repeated offences in breaking policy, it’s an unwritten rule that you’ll have your account blacklisted, and you’ll get automated non-approvals.
Facebook has made changes to its targeting options to give users more control over their data. In 2019, the platform introduced a new feature called “Off-Facebook Activity,” which allows users to see and control the data that apps and websites share with Facebook. This has led to changes in how businesses can target their ads. For example, Facebook has removed the ability to target ads based on specific job titles, which was a popular targeting option for B2B companies.
One area that has become increasingly important in recent years is remarketing. By retargeting users who have already interacted with their website or social media pages, businesses can increase their chances of converting them into customers. Your service or product that you’re selling might have a long buying cycle and customers might need some time to think before pulling the trigger. Remarketing is perfect for staying in the forefront of someone’s mind. Facebook’s remarketing tools have been an effective way for businesses to reach these users.
Increased Emphasis on Privacy
In the wake of the Cambridge Analytica scandal, Facebook has made privacy a top priority. The platform has introduced new privacy features to give users more control over their data, such as the ability to delete their browsing history and limit data collection. These changes have had an impact on advertising, as businesses can no longer access as much data as they could in the past. This has made it more challenging for businesses to target their ads effectively.
TikTok has become a major player in social media advertising and has been rapidly gaining market share. One key difference between the two platforms is the user demographics. TikTok is particularly popular with younger audiences, while Facebook’s user base is more diverse in age. This means that businesses targeting younger audiences may find TikTok to be a more effective platform for their advertising campaigns.
TikTok’s ad formats are geared toward video content, with options such as in-feed videos, branded effects, and sponsored hashtags. TikTok’s algorithm is designed to promote content that is engaging and entertaining, rather than strictly based on user behavior and interests. This means that businesses need to focus on creating amateur video content that is both entertaining and informative to engage with users on the platform. The ad strategy is completely different.
TikTok cost of advertising.
While TickTok’s cost of advertising is relatively low at the moment (2023), you can be sure it will increase in cost as the platform becomes more popular. Facebook still has better targeting, than TikTok, but watch this space, things are changing rapidly.
What this means for your business
As a business owner in Australia, it’s important to understand how these changes in social media advertising can affect your business. While Facebook advertising is still a valuable tool for reaching potential customers, the increased competition for ad space and changes in ad policies means that businesses need to adapt their strategies to remain effective.
Additionally, TikTok’s growing market share and unique advertising features mean that businesses may want to consider incorporating this platform into their advertising strategies. However, it’s important to understand the differences between the two platforms and the demographics they attract before deciding which one to use.
Overall, the key to successful social media advertising is to stay informed about the latest changes and trends. Engaging a digital marketing company that is up-to-date with the latest developments can help ensure that your business stays ahead of the game and reaches its target audience effectively.