Today's blog was written by Laura Beckstead, an Associate Sales Consultant for the Oracle Social Cloud.
Have you ever noticed when you log into Facebook that an ad often appears in your newsfeed that relates to, let’s say, those new running shoes that you were just looking at on Nike’s website? It may come off as creepy that Facebook knows this much about you, but in reality, you have been targeted with a paid media ad. Facebook launched their first paid ads in 2007. Twitter launched promoted tweets in 2010 and other channels like Instagram, LinkedIn and Pinterest followed their lead. Paid media continues to expand because it allows brands to target a specific group of individuals who fit the criteria of a qualified lead.
Organic marketing reaches its target audience through unpaid distribution posts on social media. The posts must be engaging enough to earn audiences viewership. Krista Neher, a social media blogger, refers to organic content as permission-based marketing, which means the content must be good enough that people will want to opt-in and choose to follow your posts. Paid media, on the other hand, is designed to immediately grab the attention of its audience with the goal of building a brand and selling a product. While social media started as an organic marketing tool, paid media has exploded on social networks. Not only is it a major source of revenue for social networks, but it is also a very effective marketing tool for companies.
Twitter, Facebook, Instagram, LinkedIn, Instagram and Pinterest have all hopped on the paid media band wagon. According to Statista, in 2014, the total advertising spend for paid media was 17.85 billion. This increased to 25.14 billion in 2015 and is projected to hit 32.91 billion this year. Facebook dominates the paid media scene with over $17 billion in ad revenue in 2015. A 2015 survey by Content Marketing Institute found that 74% of B2C marketers used paid social ads with a reported 59% effectiveness rate.
Organic and paid media possess different benefits. Most marketers will find that using a combination of both will maximize exposure while also maximizing marketing dollars. Paid media will extend the reach and exposure of a company while promoting brand awareness and generating new leads. On the other hand, organic posts appeal more to customer loyalty with the advantage of addressing customer service needs.
With the increased importance of paid media, Oracle has come up with its own paid media story. Through Oracle Social Relationship Management, companies are able to create posts within Oracle Social and then target ads to a specific group on Facebook. It can be based on demographics, interests, education, or preferences, and it can get as granular as what is known as a “custom audience.” Custom audiences ensure companies are targeting ads to individuals that are known and identified previously as qualified leads. By taking advantage of custom audiences, companies are being more effective and efficient. They're not wasting ad spend on customers that aren’t likely to buy their product or services.
Oracle takes social marketing to another level. In addition to targeting custom audiences, companies can also take advantage of the integration between Oracle Social and Oracle Eloqua. With these two platforms working together, companies can have contacts in their marketing automation platform dynamically flow to Oracle Social to sync to Facebook. The value here is that it eliminates companies having to manually upload contacts each time new contacts flow into the database.
The numbers show that paid social media is here to stay. Companies clearly need to incorporate paid social ads along with their organic posts to maximize the effectiveness of marketing campaigns. On social networks, both organic posts and paid posts are the key to success.