Facebook offers brands the chance to hyper target their advertising campaigns to the audiences they want to attract. In some cases those ads are easy to convert, in other cases advertising costs increase exponentially.
A new study from cloud-based social media marketing platform Unified Social examined the cost of acquisition for various segments and found Automobile manufacturing to be among the highest in terms of buyer acquisition.
Here are a few interesting facts from the Unified Social study which examined 50,000 unique ad units from 100 brands in Q3:
- Cellular and Telco brands acquire fans at a rate that’s 91% cheaper than average.
- Food ads are 58% more likely to be clicked than the average Facebook ad.
- Gaming, Desktop Software and Alcohol are also excellent at converting clicks.
On the flip side are automotive brands who pay , 69% more per impression and 25% higher click-through rates. However, the industry pays 22% less than average on a cost-per-click basis.
Educational advertising is also extremely expensive with a 63% higher than average standard cost and a 73% higher CPC rate.
Here’s a great chart from Unified Social which showcases the acquisition cost of certain industries:
It should be noted that Facebook doesn’t offer a cost-per-like basis, instead focusing on a fee structure that is based on cost-per-impression, cost-per-click and cost-per-acquisition.
So why do automobile company’s pay more for the right to earn customers? The easy answer is that they target to demographics which are more in demand. Soccer moms and stay-at-home dads cost more to reach since they tend to make purchasing decisions in the home.