All this time, businesses from small to large have been using Facebook to interact with their customers with the goal of revving up their sales. This marketing strategy, called user engagement, has convinced many companies to put their money into it.
This, however, has been proven false by Facebook itself in their recently released a white paper. It stated that user engagement is misleading, as businesses do not sell more by employing that tactic. This has been affirmed by Datalogix, one of Facebook’s partners, and also points out the fact that almost all offline sales aren’t coming from people who interact with ads, but rather with people who only see them – never engaging in them.
Marketing technology firm, SocialCode, further supports this idea. They argue that consumer engagement has a weak connection with sales and that it would only target a small group of customers, but at a high frequency – something which is resource consuming, time and money-wise.
Consumer engagement fails to deliver its goal – to increase the audience reach of businesses. It doesn’t help businesses gain new consumers, but rather it keeps a company’s customers entertained (which is not entirely bad, but then again, your main goal is to sell not to entertain).
But that doesn’t mean that user interaction should be scrapped for a better online marketing strategy. The technique works; but not in the way that you it should be.
User engagement, according to SocialCode, should not be used to increase your reach, but rather, it should be used to test ads to see if they will increase your reach. To make it clearer, Facebook user engagement should be used as a testing ground for your ads.
By using user engagement this way, businesses would know which ads are more effective and which ads they should scrap for better ones. According to them, ads that reach an engagement rate of 2% to 5% are the good ads; these are the ads that businesses should be investing in for a bigger reach.
They also add that consumers don’t take too much persuasion for them to buy your product. SocialCode says that customers would have enough reason for further spending when they reach an engagement rate of 1% to 4%.
Always remember that when you’re advertising online, you want to gain a bigger reach as opposed to merely maintaining your reach. With the help of user engagement, you can test which ads work best for your consumers – saving money to invest in better ads in the long-run.