Intelligence on getting more traffic, more often!

For reasons I can’t recall now—can anyone remember how they got lost in the Internets?—I found some interesting info about Facebook advertisements on Wikipedia. Here is a direct screen capture:

Facebook advertising click-through rates

This surprised me. I made the assumption that since Facebook had such a massive membership base, ad clicks would be at the very least average.

Sarah Smith, who was Facebook’s Online Sales Operations Manager, reports that successful advertising campaigns on the site can have click-through rates as low as 0.05% to 0.04%, and that CTR for ads tend to fall within two weeks.¹ By comparison, the CTR for competing social network MySpace is about 0.1%, about 2.5 times better than Facebook’s rate but still low compared to many other Web sites.

Yikes! MySpace is ahead of Facebook…at all?

One thing to make clear—we’re not wholehearted cheerleaders of Facebook. I personally often find it complicated to navigate and feel held hostage by its PageRank criteria. But any business—especially social ones such as fun centers, indoor playgrounds and family entertainment centers—can’t afford to ignore it.

We’ve been asked a few times about advertising on Facebook, and in light of the above information, I’d say the ROI is generally too low. I say general because you could put together a terrific, integrated advertising campaign that could belie the low stats.

What fun centers SHOULD be doing on Facebook

On the flip side, something IS very successful in Facebook:

On pages for brands and products, however, some companies have reported CTR as high as 6.49% for Wall posts.

Wall posts, videos and other content on your fun center’s Facebook Page is seen as information, more so than advertising. That’s likely the reason your page fans are willing to give it a chance.

Read the full Wikipedia entry here and let us know in the comments if you’ve tried Facebook advertising and did or did not have success from it.

¹ TechPulse 360. August 12, 2009. Retrieved July 18, 2010

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