Does lack of “Intent to Purchase” Make Facebook Advertising Irrelevant?

There are numerous articles about the difference between search and social advertising. Some writers indicate that a true data-driven marketer would clearly see that search gives a better ROI because the searcher has the intent to purchase. While a targeted ad on a social media site is passive. It may be targeted to a perfect profile client but because we are not able to make any sort of assumptions about the person’s intent to purchase, that prospect may be considered irrelevant or plainly, a waste of advertising dollars.

First, I want to address that I am not a corporate marketing guy. I have built and sold 3 companies with targeted marketing, small budgets, lots of testing but even more hunches and estimated guesses based on watching prospect(s) behavior. If someone has the budget to spend then numerous A-B testing is the most relevant and accurate way to learn target prospect behavior, conversion rates and average transaction rates. Then, it is quite easy to determine where it is the wisest application to spend your marketing dollars.

But, if you are a small-to-medium business, one that I would define as under $100 million revenues, then I believe there is a combination of A-B testing and good ‘ol fashion gut instinct and qualitative human observation that drives marketing decisions. And, when you think about marketing in this combination there are a few “thoughts” that affect marketing spend and marketing decisions. At least these are my thoughts when making marketing and advertising spend decisions.

1. Any conversation with a targeted prospect is an opportunity for a sale or to learn about their thoughts on our product/service. I don’t expect to close every single sale from every opportunity. But, I do expect to learn from every opportunity. If I don’t have the opportunity then I don’t have the opportunity for a sale nor an opportunity to make my product or sale process better.
2. Very few people buy on the first encounter with a product or service. We all remember our first marketing class, don’t we? It takes several interactions with a brand/product to even remember that you even saw it. So, why would I ignore an opportunity to start that brand awareness process with free impressions targeted at just the right people?
3. Given some interaction and testimonials, we can convince them that we are the right company/product for them. If we have an exceptional product, at a great value and an amazing customer experience, there is a component of our marketing strategy that should include prospect acquisition costs. If we are able to quantify the eventual conversion rates then we have a complete picture that should be considered.

I don’t pretend that this is an exhaustive list but its an easy 3 point consideration. I agree with people that overall statistics show that a searcher has a higher conversion rate to client than a targeted prospect who does not have an immediate intent to purchase. However, we should all understand the value of the impulse products in the grocery store check out lines, the time that we discovered a product that we didn’t know existed and the time when a direct mail piece, commercial or even driving past a certain type of store prompted us to finally make a purchase that we had been considering. There is value. There is tremendous value in targeted advertisements through social media sites like Facebook.

Here is my personal example that made me write this article:

I am a wine drinker. I am not an expert but I really enjoy wine and learning more about wines. I think that I have a decent nose and palette for wine and enjoy the process of learning more and more. And, I have a little dilemma when it comes to wine. My wife does not enjoy red wine nearly as much as I do. So, if I want to have a glass of wine with dinner, I have to open an entire bottle that will most likely not get completely consumed. The efficiency nut in me cringes at this every time I open a bottle of wine.

Several months ago I saw a Facebook Ad for www.The20wines.com. They offer a 4 bottle wine cask made from red oak that sits on your kitchen counter and you can pour yourself a single glass of wine anytime. Replacement inserts are available and wine lasts up to 4 weeks once it is open.

Prior to finding the wine cask I thought my only option was to begin to purchase half bottles of wine, which is a bit of a difficult task. But, now I have an option. I will be honest and let you know that I have not yet purchased the cask. I still have a concern about the wines that actually get put into casks. However, I clicked their ad, liked their page and I have been watching the Wall conversations and getting closer and closer to ordering one. Actually, I dropped really large hints to my wife and I am half expecting it to be a Valentine’s gift. Keep you posted!

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Brandon Lee

A seasoned entrepreneur who has built and sold 3 companies, Brandon knows that sweet success is wrapped entirely in leads and sales.