Facebook Desperate for Revenue Uses Advertisement to Fix IPO Problems

It seems like all the world is talking about right now is something to do with Mark Zuckerberg. He celebrates his birthday, then his well known company finally reaches the stock market, then he decides to get married. The last few weeks has been probably enough of an adventure to last most life times for the young entrepreneur.

It’s been interesting to see the criticism over the falling Facebook stock in its first few weeks of being out. Especially since the falling stock is also accompanied by the fact that Facebook raised $16 billion in just an afternoon even after the target price was raised twice. More importantly though, what does this new funding mean for Facebook and how are they going to create a return for investors?

The biggest thing that Facebook has promised to focus on with their new bank account is advertisements on their mobile platform. They have already released a new app for managing business pages that offers a good start to page management but has room for improvement which I’m sure they’re pursuing.

Along with this new app is the promotion option for your status updates where you can pay to have your status appear in your fans news feed. With Facebook now attacking all revenue possibilities it seems to consistently come back to one major thing, the advertisements.

There’s nothing like an audience of 900 million people at your fingertips, but how you use these people can greatly affect your results. GM recently just pulled its Facebook ad campaign all together for multiple reasons, the biggest probably being that their game plan didn’t yield results. Doesn’t mean that Facebook advertising is bad just means you need to know what you’re doing before throwing millions into a machine hoping it produces.

Where To Start

This is why I suggest starting small. Invest $25 into it and spend a week really watching the times of day and the navigation of your visitors using the insights and creating your own. Once you have the key times for your demographic, then feel free to invest more. With the Facebook Ads you’re able to control the times it’s released, the demographic you release it to and narrow it all down by interests and location.

I recently did this for a new company and found that the best time was from 9:30 am to 10:45 am, I ran ads for two days and was able to acquire 70 new likes on a new page in two days, that’s 36 cents per new like. Now the area that can be difficult is increasing your conversion rate which is the number of new likes verses the number of actual new customers.

Just because someone likes your page they might not like your product, furthermore they could like your product but not buy it. This is where GM ran into trouble. You need to be concerned with more than just getting new “likes”. Don’t become so focused on getting numbers that you don’t keep them or forget to brand your product appropriately where you get likes but lose interest.

What’s in a Like?

Likes are starting to get the reputation for being useless but personally I feel like this view comes from a very misguided perception of what a Facebook fan can do for you. People are so into adding new fans that they’re using pictures of pretty women or current social memes in the advertisements to pull in people who may love that product, but won’t love your company. The important thing is to get quality, contributing customers and fans on your pages.

Be accurate as well as creative with your advertisements. Last year Facebook got 1.17 trillion likes and comments, that’s 3.5 per user per day. It’s now just as common to “like” a status as it is to not like Justin Bieber so make sure you’re being intentional and honest with the ads you run.

Make the Ad Work For You

Utilize all areas of your ad. You get 90 characters to create the text part of the body, make each letter count. If you have a fan base ask them what they like about your page/product, what they want, and what brought them to your page and why they stay. Use that information to build your ad! If your fans love your pictures then make sure to include a creative one that makes a bold statement with your ad, if they love your discounts then mention them in your body, if they love your giveaways then use the ad to promote an upcoming giveaway!

When it comes to targeting make sure you gather all of your insights before choosing this for your ad, don’t just trust Facebook’s analytics. Be specific about who you want looking at your page and then make sure your ad appeals to that age. Feel free to make more than one ad that appeals to more than one demographic. For example, if you’re a company like Best Buy, create one advertisement for your home appliances and target women from 30-40 and then make another ad advertising car audio and stereos that targets 20-30 year old males. Don’t try to hit your entire demographic with one ad. If you’re not getting any likes you can always adjust your advertisements.

Explore Your Options

The destination tab is also a new addition that allows you to pick the part of your page that they end up at once clicking on your advertisement. This is a great opportunity to expand the brand of your company. If you’re a photographer you can have people go from your ads to a photo album, or if you’re a writer they can go straight to your wall to see blog posts. This is another area that you can try things with and gather your own analytics on what’s working and what’s not.

Feel free to leave comments or even more suggestions in the comment box below.



  1. [...] it’s going to take work.Unfortunately Facebook is also trying to charge you for promoting your posts. It’s getting to a point where you can either go broke trying to promote your site or go broke [...]

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