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Assessing Pay Per Click on Social Media

In an effort to build brand loyalty among members of Generation Y (people born after 1979), who are the heaviest users of most social networks, some advertisers are turning to pay per click (PPC) models on Facebook, LinkedIn, and other social networking sites.

Reports to date on the results of PPC advertising on social networks are mixed. With a few exceptions, advertisers report plenty of impressions, especially on Facebook, but low CTRs and a low-to-negligible conversion rate.

If you aren’t sure, test! Test identical ads, landing pages, and offers on sites such as Facebook versus those on search engines. Compare the results, and then make the decision that’s right for you. What matters is what happens with your business, not with averages.

Consider your Facebook and other social networking PPC ads as part of a branding campaign for now. You’re definitely getting your name in front of a lot of people. Instead of using sales-oriented PPC ads, place offers and advertising copy directly on your own wall or on fan pages where your followers will find them.

Twitter offers promoted products on a fixed-fee basis, not PPC; LinkedIn offers PPC ads directed at the B2B audience, which is somewhat different.

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