Facebook has quietly developed what might become the most innovative and effective advertising product of all time – Sponsored Stories. The new ad unit converts a user's activity, such as Liking a Page or Using an Application, into an interactive newsfeed or sidebar placement that can be promoted to a user's friend network. Essentially, Facebook has developed a way to turn its inventory of Facebook postings into word of mouth recommendations and trusted referrals – the holy grail of organic, bottom-up marketing.
What's the power of Sponsored Stories? It's the trusted source – your friends, your social graph.
Take, for example, the following scenario:
Even in its early stages, the data indicates that Sponsored Stories deliver a spectacular increase in effectiveness and engagement. The ad product that takes full advantage of the Facebook's inherent strength – the social graph – to offer a format that is absolutely unique and unavailable in traditional search and display.
For brands, the one major constraint to utilizing Sponsored Stories is that consumer expression determines the available inventory to serve these high performing personal endorsements. Marketers are taking notice of this transformative shift. Joe Tripodi, CMO of Coca Cola, recently wrote "impressions only tell advertisers the raw size of the audience. By definition, impressions are passive. They give us no real sense of engagement, and consumer engagement with our brands is ultimately what we're striving to achieve. Awareness is fine, but advocacy will take your business to the next level." It has never been more important that your brand is part of the conversation.
With the Open Graph, Facebook has also provided advertisers a way to configure custom verb actions and nouns, and build very compelling campaigns. Imagine:
Although the potential for this new form of advertising is limitless, it can be a very daunting task for marketers to execute:
At Booshaka, our mission is to simplify word of mouth marketing for brands and businesses. Our team of experts and technologists understands the challenges utilizing these new advertising products, and has been hard at work building solutions. Contact us today so that we can help you achieve your goals on the social web.
Or, See Plans