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.

With Promoted Posts, Facebook is Targeting Google’s Adwords

After writing my last post on why I think the ability to promote posts on Facebook is going to be huge, I realized I didn’t capture the “why” very well…  We already know that Facebook recently passed google.com in terms of raw traffic, and yet the industry around turning that traffic into real business is still in the infant stages…   So, here’s my attempt to summarize where things currently stand between Facebook and Google:

Here’s how to think about this table:

  • Google is best used to target search traffic, while Facebook is best used to target friends of existing fans.
  • Google’s algorithms are optimized to figure out what you’re going to like (or click on) based on what other web searches are clicking on… and the industry around that is called SEO. Facebook’s algorithms are optimized to figure out what you’re going to like (or click on) based on what your friends are click on (I’m calling this NEO).
  • You can use Google’s Adwords to buy targeted search traffic, which is relevant because you can surmise someone’s interest (or intent) based on the keywords they entered into Google’s search box.   You can use Facebook’s Ads to buy targeted traffic, which you can make relevant by buying terms that are related to your business page.
  • With Google, the most effective strategy for increasing the relevance of your website is to generate backlinks from other relevant and quality sites. With Facebook, the most effective strategy for increasing the relevance of your business page is to generate quality engagement from your existing fan base
  • With Google, you can increase your relevance by sending paid traffic to more relevant pages on your site (i.e. not your homepage) that are likely to convert at higher rates.  With Facebook, you can now send relevant people (i.e. friends of fans) to posts that are likely to convert at higher rates and having higher levels of engagement.

In web traffic, it’s all about relevance and Promoted Posts are Facebook’s way of letting your pay to improve the relevance of any given status update by sending more (and hopefully relevant) traffic to the update!

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.