REALTORS: You can use promoted posts to showcase your listings!

But don’t!

Greg Vincent asked the seemingly obvious questions as to whether agents should use Facebook Ads to send consumers to their post about a listing or a page on their website featuring the listing.

The answer is neither.

I’ve been buying Facebook Ads on-and-off for quite a while and have seen no evidence to suggest buying ads on Facebook makes any sense at all. Facebook is super-quick to take down non-performing ads (i.e. ads that people aren’t clicking on), and I just can’t image that the typical listing has any lasting value for consumers. If, and only if, Facebook someday figures out who is likely to move to a geographic area AND lets you target those people, I might change my mind.

Looking from a larger perspective, at just about every presentation I’ve been giving over the past few months, I’ve been harping about how Facebook makes so much more sense as a sphere building tool than as a tool to reach your next client.

If you’re curious why I make the distinction between reaching consumers directly and building your sphere, check out the Agent Business Cycle diagram. Based on countless interviews with agents (as well as my own surveys), I feel comfortable saying that the majority of agent business is generated from sphere building activities (whether they be reaching into an agent’s community or connecting with past clients)… and Facebook is the ultimate sphere building tool.

Used “right,” there has never been a social network that will help you to reach new and relevant people (i.e. friends of friends/fans/followers) so easily, but when used “wrong,” Facebook will quickly take just about all your influence within your network.

So what do “right” interactions look like on Facebook? If you’re brand new to the idea, I recommend checking out Networking Engine Optimization, but in summary, you want to be creating content (and promoting content) that will get people to interact with your business page. More than any other factor, it seems pretty clear that Facebook determines the relevance of something by looking at the interactions of their friends (whether it be comments, likes, new fans, wall posts, etc.).

Create a page with no interactions and expect to have a relative “black hole” in Facebook in the same way that a website without any inbound links is essentially a black hole to Google.

Facebook Promotion: It’s all about the status updates!

Facebook is rolling out all kinds of changes to Fan pages today… but it wouldn’t surprise me if the MOST interesting change flies under the radar for just a bit.   What is the most interesting change?  The one I’m seeing is that you can now buy an ad for an individual status update!

Here’s the screenshot I get when I click on the “promote” button:

For those of us following changes to Fan Pages, this really shouldn’t be a surprise (I actually mentioned this change when talking about the future of Facebook at a recent Leading RE conference in Vegas)… But here’s why it’s interesting.

When thinking about how to approach Facebook marketing, it’s all about Status Updates!   I got some polite ribbing from the Roost guys at the same conference when I mentioned that agents should just roll their eyes at SEO and/or Tab “solutions” when on Facebook, but I’ll stick by my guns on this one.   Don’t bother with any Facebook unless you’re planning on doing the hard work of generating status updates that will get people to interact.   Anything else on Facebook is just work avoidance.

Why are status updates so important? This has to everything to do with Facebook’s recommendation engine, or as I like to call it, NEO.   Again, I’m gonna stick by my guns on this one as as well and say that going forward networking engine optimization, or optimizing content for the social networking algorithms, is going to become a huge industry similar to SEO today.  So, if you want to get an idea of why these “promoted posts” are such a big deal, it has everything to do with the ability to get more activity on your status updates… even if you have to pay for it!

UPDATE

I went ahead and bought an ad to point to a FB status update and was thrilled to see that by default, FB point ads at the “friends of fans.”

In my early exploration of NEO, I was calling the concept FOF Marketing because the social networks do such a great job helping people reach the “friend of friends, friends of fans and/or friends of followers”, so thought it was a bit catchy… However, I don’t think FOF tells the story behind the concept as well as NEO.

Seems like there’s a constant slew of g…

Seems like there’s a constant slew of great posts about what works (and what doesn’t) on Facebook and Facebook Pages (like this one: 5 Things That Don’t Work on Facebook Pages), but what’s missing is the analysis of “why”…

But the why is just not that hard… at least no harder than the why behind Search Engine Optimization, which is why I’m so intrigued by this concept of Networking Engine Optimization (NEO). And after presenting the idea of NEO to audiences in Atlanta and Portland in the last few days, as well as the numerous conversations whose opinions I respect, I’m more convinced than ever that savvy internet marketing people are already thinking this way, we’re just missing the appropriate language. As things settle down next week, I’m definitely hoping to explore this some more!

But in the meantime, would love your thoughts on how a better understanding of the algorithms being the major social networks (twitter, facebook, etc.) could help us improve the content we create…

NEO, or the Study of How to Optimize Content for Social Networks

This past weekend while giving a presentation in Chicago, I was talking to the following slide:

… about the importance of understanding how Facebook’s algorithms work when creating your Facebook marketing strategy when someone from the audience asked, “is this similar to understanding how SEO helps explain how Google ranks websites?”

And it hit me like a ton of bricks… EXACTLY! I’ve been working towards this idea for the past year few years, but had never articulated it that clearly.

So after a bit of refinement, I think it’s time for us (internet marketers) to add a new word to our vocabulary: NEO or Networking Engine Optimization.

In a nutshell, the idea of NEO is that by studying how social networks determine relevance, we can better understand how to optimize our marketing strategies.

Having spoken about using social media for business to many different professional audiences, I feel extremely confident in saying that very few people have any understanding of the algorithms that Facebook users to determine it’s “top news” or “suggested” friends/pages… some people, Dale Chumbley comes to mind, intuitively understand how to use these algorithms, but I’m not sure even he has put a ton of thought into why…

Assuming the feedback on this idea keeps me going, I’m hoping to explore a couple different areas of NEO… but the most interesting will definitely have to do with understanding how the “hard” algorithms interact with the “soft” people (friends, followers, fans, etc.) that really determine success.

In other words, whether talking about Facebook’s “top news” or Twitter’s “trending” topics, there’s no way to get any traction without having others interact with your content. My take is that there’s been a ton of thought into understanding the importance of engaging others in your social network (Jeff Turner’s done a particularly impressive job of this with exploring YEO), but engaging with others is only a piece of a successful internet marketing strategy and just about everyone who’s actively marketing with social media would benefit from a better understanding of the algorithms that determine the relevance of their content/presence.

Anyway, this is obviously an idea that I’m still in the early stages of exploring… and I would love to hear your thoughts. But especially based on the recent news that Facebook passed Google in terms of total traffic, isn’t it time to seriously explore how the social networks are determining the relevance of our content?