Everyone is talking about advertising on Facebook. What is it all about?Remo Prinz: Media volumes on Facebook are increasing significantly. However, many companies or their agencies are booking more or less without a strategy. They buy from Facebook by credit card or intermediaries. The analysis, optimization or comparison of advertising media and how they are received by different target groups often fall by the wayside.
A study says: Only 22 percent of advertising on Facebook & Co. is based on a strategy. A wasted opportunity?
However. No other platform like Facebook offers such detailed information on the socio-demographic composition of users. They are present with a profile and have to log in every time. Of course, the information about the users is only available in correctly anonymized form. However, ads placed on Facebook could use the Facebook API to draw conclusions about the socio-demographics right up to the purchase decision. Professionally managed, this holds enormous potential.
How can Serranetga help here?
As a pioneer in Facebook advertising, we are the first German-speaking online agency to offer professional Facebook performance optimization at this level. At the moment, Facebook is still basically booked according to two scenarios: customers book their ads themselves via Facebook's own tool using a credit card. This is time-consuming, complicated, unreliable and only worthwhile for very small budgets. Our latest technology allows you to advertise much more efficiently for budgets of CHF 5,000 or more. With this, the ad placement is linked to Facebook's API so that the advertising can be checked for efficiency and performance. Facebook's own system does not offer this. The second outdated scenario is buying ads at a fixed click price.
What's wrong with that?
On the one hand, you sometimes pay high margins for the middleman. On the other hand, you book without a concept. How an advertisement works also depends on how it is designed. An advertising medium that is highly activating will have many click costs. Nevertheless, it does not guarantee success. We therefore see the booking of Facebook advertising as a separate discipline, similar to Google advertising. If Facebook is to be used seriously as an advertising channel, we need to optimize budgets at different levels.
With which tools?
We work with a creative media approach: How do you get as many users as possible, and above all the right ones, onto the communication platform used? We look at this: What actually happens after the click? We therefore integrate a code, so-called tags, which track the user and measure where they have gone after clicking on a Facebook ad. For example, you can combine different tags with different images. We offer the technological support for this. This automatically creates countless combinations and highlights better and better combinations. So we no longer start from a target group planning that is already predefined and restrictive, but we start more broadly and can then narrow down the channelization more and more until we specifically arrive at a group where we realize that we have a target group: People are interested here. This means that we deliver different advertising material for different groups or age groups and then realize that an advertisement works better with older women here and younger men there. Different subjects therefore appeal to different target groups - and this can be measurably compared.
What does this cost the customer, and what are the benefits for Serranetga?
As with Google, margins must be reduced or even completely abolished, i.e. the click prices achieved must be credited 1:1 to the customer. Our conviction: If performance is optimized, a click should no longer be the cheapest! It's better to pay a few centimes more to convert the limited target group into real prospects, fans or buyers. The business model for Serranetga as a provider of performance-optimized Facebook advertising is therefore not based on margins from buying and selling, but on income from management fees - as has long been the case with Google.
Interview: Andreas Panzeri
Remo Prinz is co-founder of the digital agency Serranetga and the marketers Stailamedia and Adwebster. He sees his work as "inspiring and mobilizing communities for an idea". Serranetga employs 15 people.
This interview was taken from the current print edition of Werbewoche.