Does Facebook Advertising Work? Behind the Facebook IPO

Originally published May 31, 2012.

Webtrends and Social Fresh hosted a webinar today to shed light on the truth about Facebook Ads and the Facebook IPO. The presentation and Q&A session featured Justin Kistner, our Director of Social Products, with Jason Keath, Founder and CEO of Social Fresh. Find recap tweets below:

Kicking off the @socialfresh webinar on the #FacebookIPO as we speak. With @justinkistner

— Jason Keath  (@jasonkeath) May 31, 2012

Happy to be listening to 2 awesome & super smart guys @jasonkeath @justinkistner talk about the #FacebookIPO @socialfresh FTW!

— 77&Sunny Emily (@77andSunny) May 31, 2012

RT @jasonkeath: Facebook's P/E (price to earnings) is high, but normal for a new tech stock #FacebookIPO

— CBS Alumni Club NY (@cbsacny) May 31, 2012

#FacebookIPO webinar: GM pulled Facebook ads because they wanted "bigger, flashier ad formats"

— Kelley Kossakoski (@kelleykoss) May 31, 2012

Did GM pull #Facebook ads as a PR stunt? I agree @justinkistner: Suspicious timing. #FacebookIPO

— Sarah K. Pierce (@sk_pierce) May 31, 2012

So do you have to be a FB ad partner to get the ads API? #FacebookIPO

— Chris McNamara (@cwilmc) May 31, 2012

Avg CTR for FB ads= .05% (half of standard 4 banner ads) BUT if u understand FB fundamentals + do it right -> 2% CTR possible! #facebookipo

— Webtrends Events (@WebtrendsEvents) May 31, 2012

Do I spy a 19%? Crazy! #FacebookIPO

— Chris McNamara (@cwilmc) May 31, 2012

Facebook ads work just fine, it turns out. Strategy is key. #FacebookIPO

— Josephine Butler (@josiebb) May 31, 2012

#Facebook ads work: Getting 2% CTR at just 1-5 cents per click via @socialfresh webinar #FacebookIPO

— Sarah K. Pierce (@sk_pierce) May 31, 2012

Great tip #1 from #FacebookIPO webinar: Use many highly targeted Facebook ads, as opposed to one "big reach" ad

— Kelley Kossakoski (@kelleykoss) May 31, 2012

The Superbowl approach (big ad to big audience) does not work with Facebook ads. Several small targeted ads work better #FacebookIPO

— Jason Keath  (@jasonkeath) May 31, 2012

RT @kelleykoss: Tip #2 from #FacebookIPO webinar: CTR peaks within 72 hours, so refresh creative and messages accordingly (via @socialfresh)

— SEOzam (@SEOzam) May 31, 2012

@justinkistner says, "Link your #Facebook ads to an app, not your frickin' website." #noseriously #FacebookIPO

— Josephine Butler (@josiebb) May 31, 2012

#Facebook fans click 7Xmore on ads than non-fans, which means cheaper CPC – via @socialfresh webinar #FacebookIPO

— Sarah K. Pierce (@sk_pierce) May 31, 2012

Facebook ads placed in news feed get 2% CTR compared to .5% elsewhere – @justinkistner #FacebookIPO #FacebookAdvertising

— Sarah K. Pierce (@sk_pierce) May 31, 2012

Best practices 4 FB ads: use many, highly targeted ads to fans; link to FB apps, not websites; refresh creative every 72 hrs #facebookipo

— Webtrends Events (@WebtrendsEvents) May 31, 2012

The big #mobile moneymaker for #Facebook will be its App Center. FarmVille addicts, prepare yourselves. #FacebookIPO

— Josephine Butler (@josiebb) May 31, 2012

Facebook is seeing no slowing in their revenue from credits #FacebookIPO

— Jason Keath  (@jasonkeath) May 31, 2012

RT @reneelynch Facebook is Doubling Down on Mobile #FacebookIPO

— Chris McNamara (@cwilmc) May 31, 2012

Webinar on #FacebookIPO from @socialfresh & @justinkistner – Q/A session = awesomesauce. I feel pretty confident again regarding FB ads!

— heather elizabeth (@SoHeatherSays) May 31, 2012

Depending on how much you love a brand will probably influence your reaction to a sponsored #Facebook post. #FacebookIPO

— Josephine Butler (@josiebb) May 31, 2012

"When it comes to social ads, Facebook is the best game in town by far" – @justinkistner via @socialfresh webinar #FacebookIPO

— FacebookAdvanced (@FBAdvanced) May 31, 2012

It's a cheaper cost per fan when using a sponsored "Like" to acquire new fans – @justinkistner #facebookipo

— Webtrends Events (@WebtrendsEvents) May 31, 2012

Will Promoted Posts push out organic results? "I don't see it becoming a Pay2Play system like Google" – @justinkistner #FacebookIPO

— FacebookAdvanced (@FBAdvanced) May 31, 2012

@jasonkeath @justinkistner Great presentation guys! Thank you! @socialfresh webinar #FacebookIPO & fate of #FacebookAdvertising

— Sarah K. Pierce (@sk_pierce) May 31, 2012

thank you to @socialfresh @jasonkeath & @justinkistner for a great webinar this morning #FacebookIPO. Looking forward to the conference!

— inlightn design (@inlightndesign) May 31, 2012

Full slide deck from the webinar is found here. For information about Webtrends Social Products, contact Justin.Kistner@webtrends.com. And be sure to check out the upcoming online Social Fresh conference Advanced Facebook Advertising , June 19 – July 13 (Justin Kistner speaking.)