A common question that merchants ask is how does advertising with Ferret Card compare to advertising with Facebook.
When a Ferret Card user earns a Gold Stamp, they are posting to the Facebook Newsfeed. This is where their friends will see the post, and from where their friends can click on the post to claim Silver Stamps.
Advertising on the Facebook Newsfeed is very valuable, and commands the highest advertising rates on Facebook. Newsfeed ads were found to be 44 times MORE effective than Facebook ads which appear on the side of the screen (source: http://www.insidefacebook.com/2013/12/19/what-do-facebook-marketers-need-to-know-in-2014/)
There is even greater demand for MOBILE newsfeed ads, which are ads that a Facebook user sees on their newsfeed when viewed from a mobile device. This is the category of Facebook ads which is most similar to Ferret Card Newsfeed posts.
How visible will Ferret Card Newsfeed posts be?
Let’s do some calculations:
- Assume a merchant handing out 1,000 iCodes to customers
- Assume that 20% of those iCodes are actually used by customers to earn Gold Stamps. This means 200 Facebook posts will be created.This figure will vary from merchant to merchant, but is very achievable. Merchants should make sure to keep their Ferret Card rewards exciting, and to tell their customers to redeem their iCodes. In store marketing material to promote the iCodes also helps drive awareness of the program.
- Assume that each of these customers has 200 Facebook friends, which is the average number of friends (source: http://www.pewresearch.org/fact-tank/2014/02/03/6-new-facts-about-facebook/). The average is even higher if your customer base is under 30.
With 200 Facebook posts, with a potential audience of 200 friends per post, the total number of potential page views is 40,000 page views.
Facebook’s rate for mobile newsfeed posts has been going up. In December 2013 the rate was USD $4.36 per 1,000 page views. In 2014 the average rate has risen to USD $7.49 (source: http://www.jonloomer.com/2014/04/28/facebook-ad-rates-placement/).
This means that 1,000 iCodes, which can potentially generate 40,000 page views, is delivering the equivalent of USD $299.60 in Facebook advertising value!
How are Ferret Card Newsfeed Posts BETTER than Facebook Newsfeed Ads?
There are a few key differences between Ferret Card Newsfeed Posts and Facebook Newsfeed Ads, even though both appear to the user in the same place:
- No Limit: Because there is only so much space to display ads, Facebook limits the number of ads which are seen. However this limit does not apply to Ferret Card, as it is Ferret Card users themselves who are making the posts.
- More Trusted: Ferret Card Newsfeed Posts are made by a user’s friends, not by targeted advertising software. This makes it word-of-mouth advertising, which is considered most trusted by users (Nielsen Research).
- More Incentive: Ferret Card Newsfeed Posts provide an incentive for a user to click on them to earn a reward (Silver Stamps). This is limited to the first 5 friends who click the link, which adds a sense of urgency. Friends who claim the Silver Stamps have a high potential of becoming your new customers because they WANT the reward!
Let’s not forget that your existing customers are also enjoying loyalty rewards at your business with Gold Stamps!
CONCLUSION : Ferret Card iCodes provide a superior advertising tool to Facebook’s own advertising options, at a FRACTION of the cost.