Why Credibility Leads to Conversions: Improving Facebook Ad Performance

By Megan DeGruttola - April 12, 2017
3 mins read time
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Social media networks have become a critical channel for consumer brands to find and engage with customers, and the reigning king of social is Facebook–specifically when it comes to paid advertising.

In a recent report, 90% of B2C brands said they’re using Facebook ads as a regular part of their paid social media strategy, with 57% planning to increase their use of Facebook ads in the near future. So many brands are trying to reach consumers through their Facebook feeds that the social media giant has warned it will soon run out of ad space–making it more important than ever to have high performing ads on this competitive platform.

57% of marketers are planning to increase their use of Facebook ads in the near future.Click To Tweet

Credibility Leads to Conversions

When it comes to Facebook ads, credibility leads to conversions. No one wants to click on a stock image when their social feed is full of more interesting, relevant and authentic content. To cut through the noise and truly connect with social audiences, brands must tap into the content consumers already identify as engaging, relatable and trusted: content created by their peers.

People have always considered word-of-mouth recommendations the most credible source of advertising, and now social media networks, like Facebook, have amplified the reach and influence of this freely created social content that’s often referred to as user-generated content (UGC). In fact, 92 percent of consumers trust earned media more than owned media and 81 percent of consumers have said their purchasing decisions have been influenced by social media posts.

By identifying and showcasing the best UGC in your brands’ Facebook ads, you can improve engagement and efficiency.

Take Toyota, for example. To amplify the impact of their annual “Feeling the Street” campaign without increasing ad budget, Toyota worked with Stackla to infuse their Facebook ads with the most compelling UGC fans were sharing on Instagram. Within six weeks, the campaign had surpassed its original goal by producing over 1.2 million collective likes, comments and shares, ultimately accomplishing a 440% increase in ad engagement year over year.

The More Relevant, The Greater The Reach & The Lower The Cost

Not only can UGC make your ads more impactful, it can also make them more relevant.

Anyone who’s run Facebook ads knows that the more relevant your ads are, the better they’re likely to perform and the less they’re likely to cost you.

The more relevant your Facebook ads are, the better they’re likely to perform and less they’re likely to cost.Click To Tweet

Since Facebook wants to only show people ads that are pertinent to them, every ad gets a “Relevance Score” on a scale of 1-10. This score is based on the mix of positive and negative feedback your ad’s expected to receive, and is updated as people interact with your ad. And if your score is low, it can cost you.

Because Facebook prioritizes relevant content, the higher your relevance score, the less it will cost you to deliver your ad to its intended audience. If you have a low relevance score, you’ll be forced to increase your bid to compensate for your lack of relevance. Since UGC is proven to be more relevant and trusted in the eyes of consumers, it should be an obvious source of content for brands.

Crown Resorts has taken this relevance-driven approach to their Facebook ads, surfacing the best of their customers’ visual content on Instagram, getting fast permission to use it and instantly promoting them across their Facebook ads.

Crown Resorts ads by Stackla and Brand Networks

“We know the authenticity of user-generated content builds trust and drives conversions on our website so we wanted to extend it to our advertising too. Using Stackla’s Facebook Ads plugin, we can develop a library of UGC we can use to create Facebook ads that our customers want to engage with.” Jessa Hill, Marketing Manager at Coordinates Collection

As a result, Crown Resorts’ Facebook ads received 40% more impressions at 21% lower cost-per impression (CPM), with a 25% increase in positive sentiment and 61% lower cost-per “Like.”

These results speak for themselves. If your ad content isn’t relevant or trusted then your advertising dollars aren’t reaching their full potential. UGC has the power to effectively engage social audiences with authentic, relevant content that resonates.

See how you can start getting better content with less effort.

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