Online Marketing: Advertising on Facebook – What & How

By - Posted under: Online Marketing, Social Media on January 15, 2012

Update 1: With Facebook filing for IPO, the latest numbers have just came in. We have updated this post to provide the most accurate numbers. (February 2nd, 2012)

With 800 825 millions registered user worldwide, Facebook is providing a great platform for online marketing and a huge user base to advertisers and companies alike to reach out to their potential customers. Furthermore, with average time spent per user on Facebook is on the rise, Facebook seems like another logical choice for online advertising. But what is Facebook advertisement and how to use it?

What Is It About?

On your Facebook page, the sidebar on the far right has lots of information, such as Real Time updates on what your friends/connections are doing, People You Might Know, and at the bottom will be Advertisement under the Sponsored section, as illustrated below.

Facebook advertisement

Some use the advertising space on Facebook to promote a deal (cheap flight, mobile deal, promotion), products (new phone, laptop) and Facebook page. How it works is that it targets users with “interest” and “keywords”. For example, if a person has “travel” as the interest and sometimes posted some pictures from his traveling experience, then the chances of him seeing advertisement relating to travel will be higher.

Currently Facebook is offering two choices for advertisers to advertisement: Pay per Impression (CPM) and Pay per click (CPC). Both choices provide the options of directing the users to a Facebook page or external URL.

Pay per Impression (CPM) – As the name indicated, pay per impression, or CPM, is you pay Facebook a sum on how many times it is shown to users and the price is normally by per thousand.

Pay per click (CPC) – Pay per click (CPC) is the rate how much you are paying when the users are clicking on your advertisement to see more.

How Does It Work?

How does Facebook advertising work?

Bidding. That’s how it works.

Advertising on Facebook is almost the same as advertising on Google (we wrote and explained how Google AdWord works here). Think of it like an auction, and the Facebook advertisement space (as shown above on the sidebar of user page) is up for advertisers to bid.

For example: You are in traveling business and you want to promote a special deal on Facebook. Currently there are few more travel agencies promoting as well, so the average bid price is USD1.00 for CPM (that’s USD 1.00 for 1,000 impressions). If you bid USD 1.10, you will get the priority and your advertisement will be displayed more often to the target market. Then you set the total budget that you are willing to spend. If you are willing to spend a total of USD110 for your campaign, your advertisement will end after your advertisement made 100,000 impressions.

It works the same for CPC; set the target market (gender, age group, demographic, etc), then the price that you are willing to pay per click, and finally your total budget. Once your budget runs out the campaign will stop.

Facebook provides a campaign report during the advertisement campaign with details such as your bidding price, advertisement type (CPM or CPC), total impression, CTR (click through rate) and total spent. Please note that the price your set is the highest price you are willing to pay. The actual cost is different daily and you can actually see the average cost for CPC or CPM in the report, as shown in the picture below.

Facebook advertisement campaign report

[NOTE: CTR is calculated by total click over total impression. From the report above, the total impression is 71,376 and total click is 72. So the CTR is 0.101% (72/71,376).]


In general, we found that using CPC will yield higher impression because in order for Facebook to earn the advertising money, they will display your advertisement more often to increase the click from users. But we cannot say that CPC is the only way to go as there were cases where CPM yielded better results (higher CTR) than CPC for the same duration of the campaign.

If you are advertising on Facebook for the first time, we recommend that you do a test run on both campaign, and then tweak the parameters, redefine the target market, the message of the advertisement, and once that is done, you will have a refined formula for that advertisement campaign. Then based on the report from Facebook, you will know if CPC or CPM is more suitable for that campaign.

What is more important is the advertisement itself. If you have an attractive and catchy advertisement and with the right message, it is more effective than advertisement that people won’t even notice. If it is done carefully, both CPM and CPC can be effective and yield the same result.


There is no true formula that fits all. First, you will need to know your requirements, such as demographic, gender, age group, and etc. Then it is important for you to define your goal, like what you want to make out from advertising on Facebook such as creating awareness, earn revenue from selling the products and/or services or promotion. After that, you will need to draft a detail plan with a clear budget in mind and then plan on maximizing your investment. Finally, decide on the price that you want to bid. In order to maximize your advertisement on Facebook, it is important not to overbid.

Most importantly, your message (picture and text) must be carefully crafted and planned because a good advertisement will attract more attention, thus creating more clicks from Facebook to your landing page (either Facebook page or your website). Converting the visitors to become a customer is more important than just advertising on Facebook, so the landing page of your website (the specific URL you provide in the advertisement) must be carefully planned with the correct layout and right information.

Facebook provides an attractive platform for advertisers to reach their potential customers, but if the whole campaign is not carefully plan out, the result will not be as desired. Furthermore, Facebook has a total of 800 825 million registered users and 350 425 millions, or 43.75% 51.51%, of these users are using mobile devices and Facebook mobile apps (Facebook app for iPhone, iPad, android phones or android tablet. Source of statistic from Facebook here) and Facebook advertisement doesn’t show in mobile app. Of course, some of these users using mobile apps will still use their laptop or desktop to go to Facebook website, but we cannot ignore the fact that some of these users will not see the advertisement.

Thus it is important to rethink your strategies to further your reach instead of solely relying on Facebook for your online advertisement and online marketing campaign.

If you have a question or need help with Online Marketing, Online Advertising or just want to chat, do drop us a call or email us.

5 Tips on Managing Your Facebook Timeline

By - Posted under: Social Media on December 21, 2011

Facebook revealed a new feature called Timeline back in September 2011. Now, Facebook is revealing more information and launching this service slowly. [Find out more here].

Honestly, we think people who doesn’t know how to configure the Timeline will be exposing themselves to the world, and their privacy will be severely violated. We at Zymora was planning to write a guide on how to control and manage your Facebook Timeline feature, but we went for coffee instead after we found this useful article.

Enjoy the article below.

(WIRED) — Facebook has rolled out its new Timeline feature to the masses.

This ultra-illustrative, chronological listing of posts, photos, shared links, check-ins, and more is a radically different arrangement than the Facebook profile you’ve been used to.

And now that your life can be exposed for everyone to see — and scrutinize — you may be interested in curating the new interface. Once you’ve activated Facebook Timeline, you’ve got seven days to tweak it to make sure it’s just how you like before it goes live for everyone to see.

Below are five quick tips on how to personalize, privatize, and generally get the most out of Facebook’s newest feature. It doesn’t take long to master the new interface, and it’s an important exercise for anyone interested in, well, reputation management.

1. Privacy 101: How to hide things
You probably already know that Facebook has controversial positions on privacy. So you may now find that some things included on your Timeline are best kept from curious eyes. This could be anything from an embarrassing status message you posted in simpler social media times, to a rant your ex left on your wall a few months ago.

To hide a Timeline element, click the pencil icon at the top of the offending post, then choose “Hide from Timeline.” Easy.

And please note: Any privacy settings you’ve already set still apply to the Timeline interface. So the photos of you getting wild at last weekend’s kegger are still safe from Mom.

If you prefer to keep your profile public, but don’t want everyone to see what you posted back in high school, for example, you can also tweak your Timeline settings more generally. Click the arrow next to your Home button at the top of the screen to access your Privacy Settings. Scroll down to “Limit the Audience for Past Posts,” then choose “Manage Past Post Visibility.” Now click “Limit Old Posts” — all

2. Tell your life story: How to add past events
Privacy, schmivacy! Perhaps, you want the whole world to know the day you were born, the first time you rode a bike, and that debate club award you got in high school. These events aren’t listed on your Timeline, but they can be.

To add a status update, photo, place check-in, or life event to your Timeline, simply hover the mouse over the line in the center of the page until it turns into a plus sign, and reveals the option to add one of those four types of posts.

Now, Facebook can accurately reflect your entire life — and not just the events that occurred after you first signed on.

3. Add some individuality: How to customize your Timeline
There are a number of ways you can personalize your Timeline so it highlights the posts, pictures and events you cherish most.

First, you can add a cover to your Timeline. Toward the top of your profile, above the buttons where it says “Update Info,” you should see “Add a Cover.” Once you click that, you can select an image from your photos, or opt to upload a new image. Once it loads, you can adjust the positioning of your cover image.

If you set a cover photo and then decide it’s not as great as you first thought, just hover your mouse over the image, and a “Change Cover” option menu will pop up, letting you reposition the image or select a new one.

For photo albums you’ve created, you can change the primary photo that displays (you could do this before, but now the process is different). Simply click the pencil icon in the upper corner of the album post, and select “Change Primary Photo.”

You can also choose to highlight a post — expanding it from a small, half-page-size post to a wide-screen version — by selecting the star icon in the post’s upper-right corner. Conversely, you can click the star on a maximized featured post to make it normal again.

4. Appearances matter: How to check out your Timeline from different angles

If you decide to make a number of posts and photos private or hidden from your Timeline, you can still get the full, complete view of your Facebook action history.

On your Timeline, click “Activity Log.” There you’ll find posts and information you need to review before it publishes to your profile, as well as a complete look at your interactions on Facebook. This is log completely private to you.

You can choose to filter what you see by clicking the “All” dropdown menu at the top. You can choose to see only your posts, posts by others, posts from specific Facebook apps (“Hmm, let’s look at my past Farmville accomplishments”), photos and more.

Like before, you can also check how others view your profile. Next to “Activity Log” is a cog icon. Click that, and you can choose “View As…” and either enter a friend’s name or click the “public” link to see how your profile looks to strangers.

5. Information overload: How to organize friends and filter updates
Now that your Timeline is all straightened out, you might as well do some house cleaning on what shows up in your Newsfeed.

When you add a friend or follow someone’s public updates, Facebook automatically sets the level of posts you see to “Most Updates.” You can change this by going to that profile, and clicking the “Subscribed” button. You can change it to “Only Important” updates or “All updates,” and you can also filter what types of posts you’re interested in seeing: things like life events, status updates, or photos.

And if you haven’t done so already, you can organize friends into lists, a la the Google+ Circles feature. Facebook Lists rolled out in September.

Just go to the left-hand side of your Newsfeed page, click “More,” and toward the bottom you’ll see “Lists.” You can add friends individually to lists like Close Friends, Family, or Co-workers. You can click “More” next to Lists to add other lists of your choosing — “Acquaintances,” “Poker Club Members,” you get the picture.

The average Facebook user has 130 friends, but I’d venture to say that most of you reading this have far more than that, so this will help streamline your Facebooking experience.

One last thing: If you’re one of those people who’s still into “poking” your friends, you can still do that. Go to your friend’s profile, and the Poke option is listed under a gear cog dropdown menu next to “Message.”

[Source from CNN]

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