The Greatest Thing to Happen to Facebook (for Users, Advertisers and Investors)

If you bought shares of Facebook after reading the article on my Quora blog in October, 2012: Why Facebook (FB) Will Be Reporting Amazing 3Q Results (Not About Mobile), you would've made a lot of money.

The time has come to make even more money.

I believe that after Facebook announces its quarterly results on May 1st, 2013, share prices will rise significantly.

While creating some new ads using Facebook Power Editor recently, I discovered an amazing new development in the Broad Category targeting section: "Partner Caterogies".

(Check out the Full List of Facebook's New Targeting Categories provided by these partners on my Quora blog.)

This is a game changer for social media marketing. 

These new resources will allow for laser-precise targeting on Facebook. Even Linkedin can't quite compete.

Not only will these new categories cause an increase in spending by existing advertisers, droves of new and returning advertisers will arrive, as well.

Since the ads shown to Facebook users will now be even more relevant, a higher percentage of people will click and convert. 

Return on investment for advertisers will improve, compelling companies to spend more on Facebook ads.  

The price of impressions has soared over the last few months and click through rates have never been higher. Since I bought shares of Facebook last October just before the price spiked minutes after quarterly results were announced, I'm inclined to invest again.

THE BOTTOM LINE

If you invest in the stock market, you should consider buying shares of Facebook before May 1st. 

If you advertise online, using these new targeting categories should improve your conversion rates.

If you want to hire an advertiser, you should contact me.

Hedge Fund Managers: Social Media's New Best Friend

It could happen tomorrow.

Any day now, the SEC will fire the starting gun and abolish the ban on general solicitation for hedge funds. Although the repeal was actually signed into law in May of 2011 as part of the JOBS act, fund managers everywhere are preparing to seize this opportunity when the SEC releases the final rules.  

I've worked for a hedge fund for years and know that funds across the country have started putting aside capital to invest in marketing as soon as it's legal. 

Those who play by the rules will undoubtedly profit from the removal of this ban. But who else will benefit?

If you're a social media marketer, the answer could be you.

In this article published in August of 2012, Hedge-Fund Managers Prepare For JOBS Act, The Wall Street Journal reports that while "many of the bigger Madison Avenue advertising agencies say they haven't been approached, smaller firms... have received inquiries from hedge funds".

Later in the article, a hedge fund manager who had just reached out to an agency for advertising advice is quoted as saying that he "intends to explore the use of social media." No other advertising mediums are mentioned in the entire piece.

Which Social Media Site Would Be Best for Hedge Funds?

While you can't beat Twitter and Facebook for brand awareness, I would advise hedge fund managers against spending too much on "fans" and "followers". One should still post or tweet some content every other day for the free exposure, but I believe Linkedin is the social media site that will profit fund managers most.

Why? Linkedin has more pertinent targeting information, a constantly expanding community of professionals and opportunities for both free content marketing and paid campaigns.  For example, when I was planning my Linkedin for my hedge fund, I could target users by: Location, company (industry or individual), job title and seniority, schools attended, skills, associations with Linkedin groups, gender and age. For my first basic, broad campaign, I first looked up the wealthiest zip codes in America and targeted them exclusively. Next, I chose to only show the ad to people in jobs with a high average income capable of qualifying them as accredited investors (over $200,000 annually). I finished off the targeting with some group affiliations relating to finance.

Because I went out of my way to avoid exposing unaccredited investors to my advertisement, I know I'll never be accused of soliciting unaccredited investors. Conversion rates will likely soar and my cost per conversion will plummet.

Since I was a kid, I dreamed of one day getting in on the ground floor of an exciting industry. Right now, every advertiser has the chance to become a true "pioneer". Since no one alive knows the "right" way to market a hedge fund because they've never done it before, the first agencies to figure out the best way to market hedge funds will prosper immensely, regardless of size. For a little while, at least, we'll all be standing on a level playing field.

When this sea change finally comes and the great gold rush begins, we will all have the chance to be one of the first to run, to forge a path into the unknown, where even the little guy has a fighting chance.

Alex Marshi works for a hedge fund for years, owns Expert Online Advertising and works as a freelance writer for Rolling Stone.

The Little Startup That Could - Founding Expert Online Advertising

Chapter 1

Ever since analysis of internet marketing results proved that the most effective advertising medium had finally come into its own, the amount of new online advertisers has been rising swiftly. At the same time, the number of advertising dollars being spent online has also increased dramatically. These circumstances have resulted in a digital gold rush that is going on at this very moment. Though it is true that competition is heating up everyday, I believe online marketing's best years still lay ahead.

To make a long story into a sentence, I got into the ad world almost accidentally awhile ago (check out this article for the full story) and served my time as a freelance internet advertiser. Now that I had several clients from various industries under my belt, I felt ready to pool my resources and found my own agency.

I knew competition would be tough in an industry with so many nearly-identical companies providing the same basic services. I needed something that would distinguish myself. I had to find a creative way to make my lean startup capable of competing with "the big boys".

I decided to begin with the basics. I researched the prices of my competition and it became instantly apparent that I could charge much less than the majority of agencies and still keep my company profitable. This would not only yield a higher volume of customers, it would also allow me to do some meaningful work with lean startups which otherwise could not afford advertising.

Then I did an analysis of my ads performance so I could compare them with the average big agency. As I was evaluating the key performance metrics of competing ad agencies, I was pleasantly shocked that my stats were drastically better than most major agencies. The majority of these companies were charging upwards of 1,000% more in fees to do a worse job at delivering the same services.

At the very least -- I had a chance at succeeding.

After completing more research, I decided it was time to start establishing a social media presence while working on my website. I began by making a Facebook page, adding some simple copy and a logo. Next, I created a few Facebook ad campaigns to test which combination of creative and targeting would perform best. I didn't expect to make my money back on these ads. The sample campaigns were to educate me on the ads responder demographics and user engagement. I felt nervous.

Just before I fell asleep, the ads got approved and were ready to run. I'd set the bids and budgets so low that I considered tripling them so they'd have a chance at being seen. Before I could decide, I passed out on my keyboard and into a well-deserved slumber.

There was no way for me to know then that by the time I awoke, my life -- and the lives of many others -- had changed forever.

To be continued in Chapter 2...

Alex Marshi is the founder and president of The New Colossus and Expert Online Advertising. Marshi also works part time as an analyst and internet strategist for Southland Capital Management and as a freelance writer for Rolling Stone.

The 4 Best Places to Advertise Online

Our Agency's Top 4 Places to Advertise (and Why)

Facebook

Facebook is the best place to start advertising. Today, every business needs to have a Facebook & Linkedin company page. Because of the way Search Engine Optimization (SEO) works, pages on these sites are more likely to show up first in search results. As I'm sure you've noticed, 'Likes' are now their own kind of currency. Businesses know the amount of Facebook fans their page has will influence the perception of the brands legitimacy and popularity in the eyes of potential clients. However, it's not just about the number of likes. As more people like your page, your reach grows exponentially to their friends and you gain incredible insights into the demographics of users who engaged with your ads. After the initial investment to run 'like campaigns', you can generate free traffic simply by posting engaging status updates (include links). It is also worth mentioning that Facebook ads yield the lowest average Cost Per Click (CPC) of any of the other platforms listed. The bad news? The prices for clicks and impressions on Facebook are rising swiftly and significantly.

Linkedin

Linkedin is an invaluable tool to acquire new customers, especially for B2B services.  So create your page and start spreading the word to acquire more followers (essentially the same thing as Facebook fans and provides the same benefits). You should start by joining groups related to your business, getting involved in discussions and posting intelligent mini-articles to showcase your intellect. Since Linkedin has so much relevant information about its users, targeting is laser-precise so your ads only reach the right people. The bad news? Linkedin has a minimum Price Per Click (PPC) of $2 and a very low average Click Through Rate (CTR); Which is why paid Linkedin campaigns are favored by B2B companies selling services with a high Value Per Acquisition (VPA).

Google

Google Adwords is a platform every business should try. Speaking strictly of their search campaigns, targeting is much different than for social media sites, but they can yield better results. Though one knows less about the individual clicking the ad, just being aware of what a potential customer is actively searching for online improves the odds of that click converting into a sale. Google ads generally have a high CTR. The bad news? Although there is no minimum default bid for clicks, the price for keywords range from somewhat cheap to extraordinarily expensive. It all depends on which keywords you use for targeting.

Twitter

Twitter can be a great asset for several kinds of companies. For publications, public figures, local brick-and-mortar businesses, venues, performers: Twitter followers can be as valuable as Facebook fans and it can be a great benefit to post content every day (with relevant links) to generate free and consistent traffic. The bad news? Twitter has a higher CPC, a lower CTR, underwhelming targeting capabilities and far fewer users than Facebook.

Learn more about our agency's inspiring services by clicking here...

Creating The New Colossus

(This article was published on www.FBPPC.com)

When I typed in the coupon code for $50 worth of Facebook advertising one year ago, I had no idea it was about to change my life.

The $50 credit came with the $10 domain (www.EverySideNews.com) I’d purchased the week before.

Every Side News was a publication I wish existed but didn’t. I was already reading the news online every day, but there was one major problem: If I wanted to feel truly informed, I had to read several articles from all sorts of publications for each subject.

All my friends complained that they had to do the same to feel informed. Then, the idea came to me: I would select articles from diverse publications that represented opposing opinions and place them side-by-side. We’d provide readers context and resources to make it easier to research subjects on their own. Links to and background on the journalists, the publication owners, the sources cited, and any other relevant information would be put on one page.

I opened a Blogger account and created the concept site. Then I made a Facebook page, designed a logo, shared the page on my personal wall, and got some of my friends to like it. The reception to Every Side News was so flattering that I bought a custom domain and crafted my Facebook campaign to gain more likes.

This was the first Facebook ad I created:

As you can see, the image I led with wasn’t particularly special. The copy I wrote  was strong, but basic. Though this ad would go on to outperform the average Facebook ad by a few hundred perfect, the creative wasn’t what did it; it was the targeting strategy.

I decided on targeting Facebook users 18 – 34, who had indicated interest in online news publications (especially aggregators), who speak English, and are in the broad category of news. However, the location targeting was the key.

Being an avid newsreader, I knew which countries and cities were experiencing the most turmoil and being covered the least in mainstream media. So I specifically targeted all of those locations.

Later, I compared my ad report with the typical Facebook ad:

I wondered if these outlier results were due to the concept of Every Side News or if I had some advertising talent. So when I was finished with my own campaign, I created a couple more for friends’ projects for free. Then, I did a couple campaigns for friends of theirs for money. But being an independent contractor wasn’t what I wanted. My goal was much bigger than that.

I pooled my resources and started a digital advertising agency. Then I ran a Facebook campaign for my ad agency. In the first week, I received several inquiries and gained my first two clients before one month had passed. By the second month, the company was profitable. By the 3rd month, I was working with new clients in multiple industries, as well as with a politician who’s running for Mayor of Boston.

One year and over 400 unique Facebook ads later, my agency is still outperforming the majority of even the biggest agencies in terms of engagement and pricing. Journalism is still a passion of mine. I’ve been published by Rolling Stone and am currently raising funds to hire a staff to make Every Side News a comprehensive, daily publication. However, if it hadn’t been for that first PPC campaign on Facebook, Every Side News wouldn’t exist, nor would Expert Online Advertising, nor Open Gallery or any of the holdings of my company, named The New Colossus after the poem by Emma Lazarus.

At this very moment, I have multiple PPC campaigns running on Facebook. I enjoy the experience of crafting every single ad. Successful or unsuccessful, a PPC campaign teaches you about your audience. If you know how to analyze the reports right, there really isn’t such a thing as an unsuccessful campaign. All of them provide invaluable insight.

Managing ad campaigns is less an occupation for me than it is a game I just happen to be pretty good at. Luckily, it’s also a game that helps me and my clients make a lot more money.

I always envisioned myself being a creative writer or thinker of some kind; I never could have guessed I’d wind up paying my bills with ad money. But the way I make that money is by writing creatively, thinking differently, and treating my clients with kindness and respect. So in many ways, that 1st Facebook ad campaign led me to the life I always wanted to lead, just via another route. A $50 coupon can go a long way, I guess.

Read more posts by Alex Marshi on his Quora blog.

- Alex Marshi is an American writer and entrepreneur, currently living in Los Angeles, California.