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Get Personal: Facebook’s First Key Trend in Local Marketing

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After attending Street Fight Summit West in San Francisco last month, we wanted to share the latest trends in the rapidly evolving hyperlocal space.

 

Ted Zagat, Facebook’s local product marketing manager, spoke about the six “Mega Trends” his company is focusing on this year, specifically:

 

1. Personalized marketing
2. Mobile user experience for all channels
3. Follow local best practices of big businesses
4. Reputation monitoring and management
5. Lightweight communication / SMS text marketing
6. Location based marketing

 

This week we are examining the first of the first mega trend.

 

GET PERSONAL: PERSONALIZED ADS CONVERT BEST

 

According to a recent report from Neustar, more than half of digital marketers (53 percent) say they always or often struggle with personalizing their marketing efforts at scale. For this reason, Zagat was able to quickly gain the crowd’s attention by pointing out the progressive trends driving Facebook’s local expansion efforts. The first trend’s focus is on the use of personalized advertising, which provides for targeted campaigns that are 91 percent accurate.

 

Four factors should be considered when thinking about your own comprehensive local marketing goals.
 

    1. The more consumers embrace personalized advertising, the more marketers benefit from higher conversion rates
    2. Consumers strongly prefer personalized ads over non-personalized ads
    3. Personalized ads receive the highest conversation ratios
    4. Relevant advertising + direct conversions path = highest conversions

 
 1. Consumers Embrace Personalized Advertising & Marketers Benefit From Higher Conversion Rates

 

The goal of personalized advertising is to create relevant ad content to provide consumers with exactly what they’re looking for.  Marketers who replace general advertising content with personalized advertising content will experience a greater acceptance of their ads and an increased ad conversion rate.
 
2. Consumers Strongly Prefer Personalized Over Non-Personalized Ads

 

The majority of today’s consumers recognize the personalization being used by modern day marketers, with 78 percent of them responding positively to the personalized content. These consumers have become more accepting of marketers attempt to grab their attention for the following reasons…
 

    Consumers describe personalized ads as more:

  • Engaging 54%
  • Educational 52%
  • Time-saving 49%
  • Memorable 45%
  • Consumers feel like “co-creators” of the content, enhancing individual engagement
  • Personalized content saves consumers time with more useful information
  • Personalized marketing presents consumers with a concierge online experience

 

While marketers strive to create an environment where consumers trust advertisers, people are already sharing more product and brand-related information.  Plus, as more consumers recognize the value in allowing advertisers to use their data in the right way, more opportunity for marketers to capitalize will follow.

 

3. Personalized Ads Convert Best

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The recent success of personalized marketing is fairly simple. Give consumers more of what they care about and less of what they don’t.  When advertising presents value to consumers, advertisers are rewarded with value in the form of more conversions.

 

Advertisers have moved their focus to personalized marketing for the simple fact that it flat out works.  ConversionXL reports that advertisers have seen increases of 149% in conversions when switching from standard pages to personalized pages.

 

The influence of individually relevant advertisements on conversion rates will continue to increase as advertisers gain consumer trust.  With Local Onliner reporting personalized marketing provides targeted campaigns that are 91 percent accurate, top brands would be smart to offer consumers a direct route to their desired conversion path.

 

4. A Straight Forward Consumer Path To Conversions Is Required For Success

 

The increased level of consumer engagement from personalized ads leaves marketers with a favorable opportunity to meet their conversion goals, as long as they easily guide the consumer down their conversion path.

 

Desktop and mobile users require a simple path to access payment options (PayPal, Google Wallet, Amazon, etc.) or other metrics of conversions to maximize marketers advertising efforts.  Although personalized content grabs consumer attention due to the relevancy of the content, engagement will increasingly fade when faced with the obstacle of accessing the campaign’s conversion metric.

 

Presenting consumers with individually relevant content is a new powerful advertising standard that needs to be coupled with a simple and direct access path to the campaigns conversion metric.

 

Be sure to check back next week as we examine Facebook’s second local marketing mega trend on mobile user experience!


Posted August 5, 2014

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