Facebook Ad Load: Why Your Ads Need to Kick Floyd Mayweather’s Ass
In the face of rising CPMs, you must compete with the big boys to succeed. Find out how to outpunch the heavyweights in the Facebook arena.
The Ad Load Apocalypse is Here
The end is nigh! We are all doomed…it’s all over!
We have reached the point where Facebook is reaching maximum ad load in the News Feed. That is, the company is running out of inventory where ads can be run. Facebook CFO David Wehner said in 2016:
“We anticipate ad load on Facebook will continue to grow modestly over the next 12 months and then will be a less significant factor driving revenue growth after mid-2017. Since ad load has been one of the important factors in our recent strong period of revenue growth, we expect the rate at which we are able to grow revenue will be impacted accordingly.”
Now it’s true that the News Feed is just one part of the total ad inventory available on the platform. Facebook has been aggressively expanding the places where it can run ads, and we can expect to see big growth in areas such as video and the use of inventory on Instagram, WhatsApp and other platforms.
Nevertheless, it is undeniably true that the growth in demand for Facebook advertising is outstripping the company’s ability to supply inventory. And there is no doubt that News Feed advertising is the cherry on top of the cake – the golden goose that continues to lay valuable eggs for both advertisers and Facebook shareholders.
So we are at the end of an era…and an uncertain future awaits the millions of advertisers who rely on Facebook for leads, sales and profits.
Be Prepared for Skyrocketing CPMs
I remember the good old days when you could get clicks on Google AdWords for five cents – even for competitive keywords. Now you would be lucky to get similar clicks for less than a dollar, and you might have to pony up five bucks or more. In some markets, the cost per click runs into hundreds of dollars.
AdWords CPMs have gone through the roof in the two decades since Google started offering advertising options, and we can expect the trend to be similar with Facebook. In both cases, we have ad auction environments in which the highest bidder wins. And when demand exceeds supply, costs inevitably go up.
In a few years’ time, we will probably look back at the early years of Facebook advertising with fond memories of how cheap it was. Getting clicks for pennies…imagine that! We can expect CPMs to increase year by year for the foreseeable future.
So is this the end of Facebook advertising as we know it – or can we do something about it? Can we fix the problem?
Off course we can. In fact, we can not only fix it…we can go on to prosper like never before.
A Lesson from Las Vegas
A little while ago, Conor McGregor went into the ring with Floyd Mayweather in an unusual boxing match that bridged two worlds. The two men came from totally different fighting worlds. So it was one of the most anticipated fights in history, attracting a huge audience worldwide.
Conor McGregor was the undisputed star of his own world, Mixed Martial Arts (MMA). In a few years, he had racked up a series of victories that put him at the top of the MMA world, winning multiple championships. In the world of MMA, he was unbeatable.
But when he stepped into the ring in Las Vegas, he took on a very different opponent. Floyd Mayweather Jr. was perhaps the greatest boxer the world had ever known. Over a long career, he had racked up an incredible 49-0 win rate.
So the result of the contest was not a big surprise. McGregor got off to a good start, and even managed to win the early rounds. But as the fight continued, Mayweather’s greater strength, fitness, skill and sheer boxing prowess won out. Before too long, the referee stopped the fight and Mayweather was the worthy winner.
So what’s the lesson here? What learned that it’s one thing to be a big fish in a small pond – but quite something else to be a big fish in a big pond. McGregor was able to dominate in his own ‘small pond,’ but came a cropper when he started playing with the big ‘fish.’
The Fight for the Click
This is important to advertisers because Facebook forces us to fish in the big pond. This is one way in which Facebook advertising differs significantly to Google advertising.
Let’s imagine you are a dentist from Albuquerque looking to promote your business. If you choose to use advertise using Google AdWords, then you can be a big fish in a small pond. If you are bidding for the keyphrase ‘Albuquerque dentist’ then the only people you have to outcompete are other Albuquerque dentists. That’s not too hard. Get good at managing your AdWords campaign, and you can easily beat your competitors and get the clicks you need.
But if you decide to invest in Facebook advertising, you now have a very different proposition to consider. For sure, you can limit your ads geographically so that you only get impressions in the Albuquerque area. That’s a great start. You don’t have to compete with advertisers trying to reach people elsewhere.
However, you do have to compete against every other Facebook advertiser trying to reach people in your city. This includes big brands and major corporations with enormous marketing budgets. You are competing for ad impressions with companies selling mortgages, consumer goods, credit cards, legal services, fast food and a whole lot more.
You are now swimming in a very big pond. And in this pond, the big fish have enough marketing clout to swallow you whole. So how do you avoid becoming some corporate shark’s lunch? What will prevent you from being outclassed like McGregor?
Total Facebook Fitness
To put it simply, you have to get really, really good at Facebook advertising. You can’t afford to be only as good as Conor McGregor. You have to be a Floyd Mayweather and punch above your weight in any ring that you get into.
So does that mean you need have massive budgets to spend? No…not at all. You just have to be smarter. Great white sharks used to be the top of the food chain. They were the biggest and most dangerous big fish in their big pond. But then humans came along with better weapons. We are certainly not bigger than great white sharks, but we are lot smarter. And because of that, we can take on sharks and win.
Big corporate advertisers are like great white sharks. They are used to playing in a world that abides by their rules. They used to be able to throw money at advertising and hope that some of it would stick. But in the specialized world of Facebook advertising, that is a recipe for failure. Of course, some big corporates have become very good at understanding this new medium…but the vast majority have not. This is their Achilles heel.
As the owner of a smaller business, you have an advantage that is as powerful as a Floyd Mayweather punch. You can:
Of course, this won’t happen overnight. You have to work at it. You need to achieve ‘total Facebook fitness’ – or at least know someone who can help you achieve that goal. But once you have attained superior fitness, you are in a strong position to win.
Punch Above Your Weight
A lot of people were hoping that Conor McGregor would surprise Floyd Mayweather with a punch that knocked him out cold. That didn’t happen, but you can make it a reality in your market. Learn the skills you need to compete in the biggest arena with the fiercest competitors – and deliver a knockout blow that makes you the unbeatable champion in your niche.