Agents: Facebook’s Segmentation Abilities Are Impressive

Facebook may be flawed (elections, fake news), but its segmentation is a masterful piece of work by well-trained marketers. Facebook uses a sophisticated segmentation approach to build its formidable targeting capabilities.

While most digital marketers are obsessing over communications, exclusively tactical decisions (such as ‘how do I live stream myself to millennials connecting my VR headset with my 3D printer?’) and micro-metrics like CPM and CTR, Facebook is building the fastest-growing digital business in the world on the basis of doing good basic segmentation and then offering it to clients who are increasingly unable to do any of this themselves because a) they do not know how to do it or b) they don’t think such things are important any more in the overly tactical world of modern marketing.

Facebook, we doff our marketing caps in your general direction and offer our congratulations.

Facebook’s approach is what we call hybrid segmentation. It uses multiple data sources drawn from a combination of different types of consumer data to build its picture of the market. There is a combination of general attitudinal data (e.g., supporting sports organizations), behavioral data (e.g., buying tickets to a golf tournament) and demographic data (e.g., 65% male). The Facebook team started with the attitude clusters, then moved onto behavioral indexing and then finally looked for demographic distinctions from the general marketing mean, and then made up a bunch of stereotypical ideas about what this ‘segment’ would probably want.

That ability to slice, dice and then target down to the individual level is supremely useful when it comes to designing messages that will press the right buttons when families are considering a golf boarding academy or camp experience.

We also get another massive advantage with this segmentation. We can reach everyone.

Their expertise in segmentation is going to make Facebook even stronger and more dominant next year.

Marketing Tip: Understanding Facebook Ads and Ad Spend

It’s important to note that Facebook works like an auction. This is important because it’s part of the reason that there’s no set answer to “how much do Facebook Ads cost?”

What Factors Influence the Cost of Facebook Ads?

A lot of factors directly or indirectly affect the cost of Facebook Ads.

How much your ads will actually cost—and how much you’ll get for what you pay—will depend on a variety of different factors.

Here are some of the biggest factors that directly influence the cost of Facebook Ads.

  • The Audience You’re Targeting

○ This, in part, will largely be affected by what you’re spending, bidding, and who else is targeting the audience you’re targeting.

  • Ad Quality

○ Facebook measures the quality by based on relevance and interaction. Making sure the relevance score and click-thru rate stay high will result in lower priced ad space.

  • Time of Year

○ There are peak times in the year when advertisers are flocking to Facebook Ads in droves—even more than normal. During these peak times, there will be more competition for ads, and you’ll pay more as a result.

  • Bidding Options

○ Facebook has different bidding options based on the objective of the campaigns. Bidding options affect cost a great deal, because you are choosing what you want to pay for. A cost per conversion is almost always more expensive than the cost per impression or cost per click, etc.

So what does this all equate to?

In just the USA, the average cost per click (CPC) of Facebook Ads in Q3 2016 was 27.29 cents (and 27.40 cents for ALL objectives). The cost per 1000 impressions (CPM) based on Q3 was $7.19 (and $7.34 CPM for ALL objectives).

CPC declined for 35 and ups, but increased for 34 and younger (except for the teenagers which remained at their lower cost .06 cents per click).

In Q3 2016, desktop placement decreased in price (largely due to increased mobile targeting)
For campaigns running “Page Likes” as an objective, advertisers saw an average cost of $0.23 per page like in Q3 2016, or about $230 per thousand likes.

Summary

There are plenty of factors that can affect how much you’ll be paying for Facebook Ads, including the audience, relevance scores and bidding strategies. The data shared here, however, covers a large span of usage and demonstrates a starting point of what you can use as a reference point to get a realistic, number-based view on how much Facebook Ads actually cost. Your costs will likely be slightly (or, in some cases, very) different, but knowing what affects the cost of Facebook Ads and how to lower them, you can go in knowing what you’ll be paying.

Social Media Around the World

According to Alexa and SimilarWeb traffic data, this map shows the most popular social networking sites by country as of January 2017.

Facebook is still the leading social network in 119 out of 149 countries analyzed. With over 1.6 billion monthly active users. Facebook has 540 million users in Asia Pacific (+44 million since last December), 323 million in Europe (+ by 12 million), 219 million in USA & Canada (+6 million).  Facebook continues to grow more so globally than domestically. Next month, we’ll send you information on understanding Facebook Ads and Ad Spend.

Instagram is the second social network in 37 countries.

In Botwana, Mozambique, Namibia, Iran and Indonesia – Instagram wins and some African territories prefer LinkedIn.

Overall LinkedIn conquers 9 countries, Instagram 7, meanwhile VKontakte and Odnoklassniki (part of the same group Mail.ru) grow in Russian Territories.

In China QZone (QQ) still dominates the Asian landscape with 632 million users. Maggie researched that those born after 2000 gravitate to QQ.

Japan is the only country where Twitter is the leader It has 35 million monthly active users, while Facebook has 25 million.

For Partners: Start a Golf Column!

MARKETING TIP NO. 1

IJSA creates new blog/video posts on a weekly basis for both BGGA and IJGA. You may use these posts and images not only on your website, but on someone else’s online or print publication.

First, search out local, regional or national print or online publications who may be interested in a golf or golf performance training regular column.

We suggest you meet with the editor, show them samples of the type of blog posts/articles you could provide from either BGGA or IJGA or both. Tell them we offer not just educational but entertaining articles/posts and videos related to the junior golf world. Remind them that these are the top experts in junior golf in the world. Show them our Coaches Bios one pager. IJSA marketing department will help you write a brief overview for the column that explains who is writing the articles. We suggest you drive any inquiries directly to you, so either to your website or email/phone.

Every editor is looking for good quality content. In return for the regular posts/videos, ask for a full-page ad, and don’t settle for less than a half-page ad.

One of the most effective content formats is a third party site. Having a layer of authenticity behind the Academy posts or a video will invoke confidence and curiosity in potential student-athletes and their families. This added layer of authenticity provides credibility to the Academies and to you.

Blog content is still a dominant marketing tactic in 2017, whether that’s a listicle, blog post, article or other. Content supplements sales and supports the backbone of each Academy’s messaging. It’s an integral part of helping you market.

Best of luck! We are here to help you should you need us.

P.S. Please note IJSA marketing must approve both the publication and the brief overview.