Tag Archives: facebook

It’s OK not to have a social media strategy (really)

I have heard various product owners beating themselves up about how they don’t have enough of a social media presence. Well, I have been running a profitable one-man software company for the last 12 years and I am here to tell you that neither of my products have a social strategy worthy of the name – and that’s OK.

My seating planner software, PerfectTablePlan, has a Facebook page and a Google+ page. Whenever I publish a newsletter for PerfectTablePlan I publish a link to the newsletter on these sites (which is a few times per year). That’s pretty much it. My visual planning software, Hyper Plan, has an even smaller social media presence than PerfectTablePlan. To be honest the small amount I do on social media is intended mostly for the benefit of the mighty Google.

My forays into social media have not been encouraging:

  • I once sent out a newsletter to over 3000 opted-in subscribers and encouraged them to follow a newly created PerfectTablePlan Twitter page. Exactly 0 of them did.
  • I created a Pinterest page for PerfectTablePlan and paid someone to post to it for a few weeks. It generated a bit of traffic of questionable quality, but the traffic dried up as soon as they stopped posting.
  • I have tried paid ads on Facebook and Twitter and the results were miserable.
  • The PerfectTablePlan Google+ page has just 14 followers.
  • The PerfectTablePlan Facebook page got a miserable 4 views last week.

The question isn’t whether social media can bring you traffic, but whether that traffic will convert to sales and is social media the best use of your limited time? Social media is a productivity black hole and the opportunity costs of noodling around on Twitter should not be underestimated. Also various studies show that email still out-performs social media by quite a margin.

“E-mail remains a significantly more effective way to acquire customers than social media—nearly 40 times that of Facebook and Twitter combined.” McKinsey

People go on social media to chat to their friends and look at cat videos. Not to buy things. They use search, Amazon and Ebay for that. When is the last time you even looked at an ad in the Facebook sidebar? Or clicked on a sponsored post in Twitter? Exactly.

Making an impact on social media is hard. 90% of tweets are not retweeted. And even the followers that are real humans may only be interested in discounts:

“The IBM Institute for Business Value found that 60-65% of business leaders who believe that consumers follow their brands on social media sites because they want to be a part of a community. Only 25-30% of consumers agree. The top reason consumers follow a brand? To get discounts – not exactly ideal for a company’s bottom line.” Forbes

A lot of the ‘engagement’ on social media is fake. You can buy 1000 Twitter followers for less than £10. The BBC advertised a fake business with “no products and no interesting content” as an experiment on Facebook and got 1,600 highly suspicious ‘likes’ within 24 hoursCopyblogger deleted their facebook page due to the amount of fake followers and the low level of engagement.

A thread I started on the Business of Software forum showed that many other small software product companies had tried and failed with social media. Why do you think you will fare better? Most software products just aren’t inherently social. There is a limit to how much you can usefully say, day after day, about seating planning. I could try and create a social media presence talking about the latest wedding and catering trends and try to sneak in some references to seating plans. But I would rather commit suicide with a cheese grater.

As a rule of thumb it might be worth putting serious effort into social media if yours is the sort of product people are likely to talk to their friends about down the pub. In that case social media may be able to usefully enhance your visibility and reach. But for the vast majority of software that doesn’t fit this description, you are trying to hammer a square peg into a round hole. At the time of writing the pop star Taylor Swift has 74,638,154 Facebook likes. While Intuit, one of the world’s largest software companies, has 221,130 likes.

Next time somebody tells you that you must have a social media campaign ask yourself:

  • Is your product a good fit for social media?
  • Do they have an agenda, e.g. a social media tool, ebook or consultancy to push? Or an article quota to fill?
  • Have they produced any real evidence that a social media campaign translated into actual sales?
  • Is social media the best thing you could be doing with your valuable time?

Ignore any vague waffling about ‘engagement’. Nobody ever paid their mortgage with engagement.

Advertising your software on Facebook (=Fail)

Facebook previously didn’t allow the advertising of downloadable software. Someone told me that they had relaxed this policy, so I checked their guidelines. Sure enough they have removed the offending line in their guidelines that used to say:

No ad is permitted to contain or link, whether directly or indirectly, to a site that contains software downloads, freeware, or shareware.

It says in their guidelines that downloadable software that does naughty things such as “sneaks onto a user’s system and performs activities hidden to the user” is not allowed, which is fair enough (see section 14 of their ad guidelines for the details).

Woohoo! As part of my ongoing project to try every legitimate form of promotion known to man, I can try advertising my seating planner software to, for example:

I ran 5 different ads over a couple of weeks. For example:

advertising software on facebookTrying to fit an attention grabbing and informative ad into the very limited strapline and image size was challenging. But I didn’t spend too long agonizing over the ‘creative’ (image and text), as this was just a feasibility study. The biggest problem was the minimum bid prices. Facebook was recommending I bid at least £0.40 per click. Given that the majority of my customers buy a single licence for £19.95 and typical conversion rates for clicks are around 1%, I would be likely to lose money if I bid £0.20 or more (especially when you consider ecommerce fees and support). I bid £0.10, but got no impressions at all. I bid £0.20 as an experiment and got a reasonable number of impressions. As soon as I dropped the bid to £0.15 the impressions slowed to a trickle.

Here are the stats from my experiments, as reported by Facebook:

Impressions: 357,366
Clicks: 310
Click through rate: 0.087%
Total cost: £46.60
Average cost per click: £0.15
Average cost per 1000 impressions: £0.13

Any of you who are used to Google Adwords might be surprised how low the CTR is. But apparently this is quite a reasonable CTR for Facebook. This isn’t too surprising when you consider that people are on Facebook to socialise, rather than to search for stuff.

Of course, the most important metric is the profit. So how many licences did I sell? According to my own cookie tracking: zero. Zilch, nada, nothing, not one. Cookie tracking isn’t 100% reliable, but it seems that a 1% conversion rate might be highly optimistic for a facebook ad. Advertising a £19.95 product on Facebook to people who might be planning to get married obviously wasn’t going to be profitable given my price point, the minimum bid prices and low conversion rate. So I created a new ad to try to target a more focussed demographic, who might convert better and perhaps buy one of the more expensive versions of my product. Ad number 6 was disallowed one minute after it had been approved.

Eh? This ad was very similar to the previous 5 approved ads and for the same product. Their email said:

The content advertised by this ad is restricted per section 5 of Facebook’s Advertising Guidelines. Restricted content includes, but is not limited to: 1. Downloadable products that may affect the user’s computer or browser performance in unexpected or undesirable ways; 2. Get rich quick and other money making opportunities that offer compensation for little or no investment, including “work from home” opportunities positioned as alternatives to part-time or full-time employment or promises of monetary gain with no strings attached. 3. “Free” offers that require users to complete several hidden steps or make additional purchases in order to receive the promised product. We reserve the right to determine what advertising we accept, and will not allow the creation of any further Facebook Ads of this type. Ads for this product, service or site should not be resubmitted.

I didn’t feel my ad/product violated any of those criteria. It was clear in the ad that only the trial was free (not the product) and it doesn’t do anything nasty or sneaky. I emailed them for clarification. Here is the response:

Hi Andy,

Thanks for your email. Please note that we don’t accept ads for downloadable products through our self-service advertising channel. We reserve the right to determine what advertising we accept, and will not allow the creation of any further Facebook Ads for this product.

In order to maintain legitimacy of the products and services promoted on Facebook, ads for downloadable or installable products are only permitted through a direct sales partnership with Facebook. At this time, we’re only able to provide this service to a small set of qualified advertisers.

We’re committed to providing high-quality support for all of our advertisers, and we’ll keep you and your business in mind for the future growth of our ads product. In the meantime, please continue to email us here with any questions you may have and we’ll be happy to answer them for you.

If you have any further questions about why your ad was disapproved for Restricted Content, please refer to our Help Center about downloads at:

http://www.facebook.com/help/?faq=18665

Thanks,

Gloria

Online Sales Operations

Facebook

So apparently, they still don’t accept advertising for downloadable software, unless you are an approved partner, because it ‘may affect the user’s computer’ (even if it doesn’t ). This wasn’t at all clear in their guidelines and they let me run 5 ads before they enforced it (these ads are still running BTW). Thanks Facebook, I like you less with every passing day (and I didn’t like you much to start with). At least I got enough data to show that I was unlikely to ever get a return on advertising a £20/$30 product. I also console myself with the fact that PerfectTablePlan is doing better financially than Facebook (after 7 years and with 500 million users Facebook are finally cash flow positive, but nowhere near recouping the estimated one billion dollars in venture capital) and my product will hopefully still be selling profitably after Facebook has  been buried by the ‘next great thing’ that comes along so regularly in the world of social media.

New Software Marketing Facebook group

Alwin Hoogerdijk has created a ‘Software marketing’ Facebook discussion group. Personally I’m not a fan of Facebook, as will be obvious to anyone that checks out the howling void that is my Facebook account. But Alwin is a very smart online marketer, so I have tried to overcome my aversion to Facebook and joined the group. Just don’t expect me to care how you are doing at Farmville …

Facebook don’t need no steenkin’ software ads

facebook.gifI don’t really ‘get’ Facebook. Maybe that is because I am 42 years old and I am not supposed to. But I do get the advertising potential. Facebook have cunningly extracted detailed demographic data from their customers and are using this to offer highly targeted advertising to businesses. For example, Facebook currently has 32,080 females, aged 25-40, with a college education, in the USA who are engaged. These are the sort of people I would love to advertise my seating planner software to. But Facebook doesn’t want my money. A quick read through the Facebook advertising guidelines reveals:

No ad is permitted to contain or link, whether directly or indirectly, to a site that contains software downloads, freeware, or shareware.

This might possibly be due to worries about malware, but that seems to be covered by other clauses. Maybe they just want to keep their customers on the Facebook site, so they can click more ads? But, aren’t most URLs going to indirectly link to sites containing software downloads if you keep following links?