Facebook Advertising For Retailers Gives Big ROI

Retailers get big ROI from Facebook AdsMajor ROI For Retailers

There has been a lot of griping over Facebook during the last 6-12 months. Is Facebook advertising for retailers and other businesses mandatory to increase reach?

In my circles, several social media professionals, who I like to call my peers, have all been bemoaning the same thing: how frustrating it is to reach 100 percent of your fans/followers and how to grow your existing fans organically, on the world’s largest social network.

We all believe organic growth is dead.

It’s becoming increasingly challenging if not next to impossible to grow your Facebook fans through organic means alone.

If you want to grow your reach on Facebook and reach more than 16% of your total Facebook fans, you have to pay for it through targeted Facebook advertising for retailers and businesses alike.

The Sunny Side Of Facebook Advertising For Retailers

It’s not at all, all doom and gloom for businesses on Facebook. Quite the contrary.

In fact the retail industry is enjoying a phenomenal 2013 on Facebook. AllFacebook, the unofficial blog of the social network reports the following:

Facebook advertising for retailers who are actively managing their social media marketing, engaging with their fans, followers, customers, prospects, and investing in targeted  advertising on Facebook are seeing noteworthy ROI.

Check out some of these stats from Nanigans, a Facebook social marketing platform.

Their study included more than 150 billion impressions from 100 retailers.

1. Click-through rates  for retailers in the first nine months of 2013 were 3.75 times higher than the same period in 2012.

2. Retailers are averaging a 152 percent ROI

3. 57 percent of desktop ad spending by retailers is delivered in News Feed

4. Right-hand-side ads continue to deliver strong ROI, at 228 percent.

5. 37 percent increase in CPMs (cost per thousand impressions) from the first month of the quarter to the last month.

6. iOS delivered ROI 17.9 times higher than Android.

7. Facebook Exchange ads in news feed delivered CTRs at 28 times the rate of right-hand-side ads, but 15 percent lower ROI.

The Chief Operating Officer from Nanigans, Marc Grabowski, said the following in a media release announcing the report:

“Incremental sales have become core to retailer Facebook advertising goals, and measuring the true ROI of these efforts is being increasingly demanded. While every retailer has a unique customer base and their results and strategies vary, we’re excited to offer a benchmark report specific to the sector with meaningful metrics and actionable strategy recommendations.”

Here’s a chart to help illustrate the point:

Facebook Advertising For Retailers


Are you a retailer or have you worked with someone who uses Facebook advertising for retailers? If so, I’d love to hear how your results compare to this study.