169: The Oddest Objection I Get When Consulting
I get a really odd response when I recommend that Facebook receive a sizable chunk of a marketing budget.
“Not everyone’s on Facebook, though.”
I’ve never heard a client declare, “Not everyone gets the newspaper, though.”
I’ve never heard an auctioneer say, “But not everybody opens their mail.”
The irony in my clients’ rebuttals is that Facebook is the most dominant channel in any medium in our country. As of August of 2015, 62% of the adult population and 72% of adults in the country who use the Internet are on Facebook.1 Two thirds of those Facebook users visit the site every day.2
By contrast, the most watched show on TV last year (Sunday Night Football) garnered 6.6% of the nation’s population.3 That’s 10% of Facebook’s daily reach, and it’s available only 17 nights a year. Plus, advertising to that small fraction of people would cost you just short of a firstborn child.
“But older folks aren’t on Facebook.”
64% of Internet users ages 55 to 64 use Facebook.1 Only 44% of Americans ages 55-64 read a newspaper.4 It’s safe to assume the percentage of adults who look through the classifieds of those newspapers would be significantly smaller still.
Not only is the quantity of newspaper subscribers shrinking (7% for daily papers and 4% for Sunday papers—last year alone), so is the quantity of newspapers themselves. A net of 118 U.S. newspapers closed their doors between 2004 and 2014.5 Multiple times in the past couple years, I’ve had to email a client to let them know that a newspaper they requested is no longer in print.
In contrast, the number of mailboxes in America isn’t shrinking; and neither is Facebook’s user base.
“Well, professionals and investors [rich people] aren’t on Facebook.”
78% of on Internet users with household incomes above $75,000 are on Facebook.1 That happens to be the highest percentage of any income bracket.
Facebook will let you filter audiences by income, by net worth, by liquid assets, and by number of lines of credit. I regularly target lists of millionaires and multimillionaires on Facebook and get tons of traffic to my clients’ websites—for both commercial and luxury residential properties.
One of my clients auctioned a medical office building earlier this year. We had a direct mail campaign and ads deployed in local and business newspapers. At the first open house, every single prospect touring the property came from Facebook. They weren’t teenagers or minimum wage workers.
Am I saying advertising budgets should be almost all Facebook?
Absolutely not. No media saturates 100% of your prospect base. It’s good to cover as many bases as you can afford.
What this data should determine, though, is the priority order in your advertising budget. Actually, that hierarchy should be determined more by your internal data than by user statistics and audience size. If you’re polling your bidders at every auction and then tracking your offline & online media in Google Analytics, you’ll be able to tell which media work best for specific asset types in specific geographical locations.
I recently bet a client that, if their winning bidder came from one of a selection of out-of-state newspapers, I’d rebate all of my design fees. I wasn’t promising a bidder from Facebook. I just knew we could reach far more people and a much more targeted audience on the same spend, and I prefer efficient advertising over hail Mary throws. (They agreed.)
Most of the small business folks who object to my bullish stance on Facebook don’t have data to refute my assertions. They’re working off assumptions, anecdotal recollections, and their personal habits. (“I never get on my Facebook.”) Auctioneers who do test and measure and analyze have been moving more money to Facebook, Google, direct mail, and signs—away from newsprint.
I’m not telling you how or where to spend your money. I’m just letting you know that neither you nor I can trust our assumptions.
Stock image purchased from iStockPhoto.com
Chart linked to source.
1 “The Demographics of Social Media Users”
Maeve Duggan, Pew Research Center. August 19, 2015.
2. “Facebook Passes 1.65 Billion Monthly Active Users, 54% Access the Service Only on Mobile”
Emil Protalinski, Venture Beat.April 27, 2016.
3 “Here’s How Much Ad Time in NFL Games Costs Marketers This Season”
Anthony Crupii, AdAge. September 15, 2015.
4 “Newspapers: Sunday Readership by Age”
Pew Research Center
5 “Newspaper Fact Sheet”
Michael Barthel, Pew Research Center, June, 2016.