5 Ways Retailers Can Increase ROI and Engagement on Facebook

Facebook advertising has been the cause of much controversy among the marketing community as of late. While the site brings in a daily ad income of $1 million, many advertisers have been calling the channel ineffective and have pulled their advertisements, like General Motors did in May. At the same time, Facebook still boasts global ubiquity, an unmatched user base and the opportunity for brands of all types to connect with their customers.

Where does this leave retailers? During its recent second-quarter earnings call, Facebook executives reminded us about the growing presence of "social" ads, providing insight into how brands can embrace the core qualities of the platform to better engage audiences.

Understanding that social media, no less Facebook, isn't going away anytime soon, let's look at five ways retailers can better engage users on Facebook:

1. Align with the purpose of Facebook. Consumers don't use Facebook to view ads; they use it to socialize and interact with their friends. Retailers need to adjust their advertising strategies accordingly, trying to engage users in a more organic, social way. For example, people like to share on Facebook. If you want to benefit from the scale of the network, give them something they have a vested interest in sharing. Promotions are a great way to get viral visibility. Ben & Jerry's recently launched a Facebook campaign that promoted its new Greek frozen yogurt by helping fans find "spooning partners" and providing coupons. The company's ad team then promoted the campaign through paid media on Facebook, encouraging users to participate and share with friends.

2. Look at Facebook through a user's perspective. When designing interactions on Facebook, the most important question to ask is, "Will my core audience find this interesting or of value?" If you're unsure as to the answer, reconsider your strategy. Take a user-first approach to engaging on Facebook that's genuine to your brand and fun for "fans." Above all, stay true to web 2.0 mantra: Be transparent and authentic to your core brand identity. P&G recently coupled its "Best Job" national advertising campaign that showed mother's supporting their children in athletic events with a Facebook page showing mothers supporting their sons and daughters during the Olympics. The campaign was successful because it resonated with so many people, bringing back adolescent memories for me, personally, and the Facebook page that showed interaction between mothers and Olympic athletes helped sustain user interaction throughout the games, directly mapping back to the core values of P&G's brand.

3. Build engagement through brand pages. Advertising doesn't have to come in the form of a 250 x 250 IMU pop-up. Facebook is a place to engage, to have a dialog. The best brands use the social networking site to build engagement through Facebook Pages. If you make your brand as accessible as another "friend," embracing your customers for their opinions and feedback, you've created a two-way dialog that fosters a much deeper connection. Well-designed and well-managed pages not only increase awareness, but also cultivate brand advocates that will promote your brand socially. The Rugby World Cup is an example of a great Facebook page that constantly engages fans through updates and fun postings, even though the next Rugby World Cup is three years away.

4. Make it interactive. In addition to an active Facebook Page, brands should consider creative campaigns that engage their audiences and, along the way, increase brand awareness. Wal-Mart ran a great campaign with recording artist Pitbull where the store with the most "likes" would host the rapper. A writer for The Boston Phoenix thought it would be funny to send Pitbull to the most remote Wal-Mart in the country and encouraged people to "like" the Wal-Mart in Kodiak, Alaska. That store ended up receiving 35,000 "likes" and, true to his word, Pitbull went to Alaska (he even picked up some bear spray as a souvenir). This campaign brilliantly leveraged the core characteristics of the channel to garner broad attention in a way that was fun for users.

5. Make it an ongoing strategy, not a "one off." While Facebook is "free," it's anything but for your marketing department. It takes a lot of time and resources to build a Facebook presence and grow a following. Any marketing or ad campaign requires careful planning, talented marketers and creative assets in order to be successful. Social media is no different. In fact, it needs constant attention to make sure the engagement evolves with your customers. Getting them is half the battle; as soon as they feel you're not listening or responding, they'll move on to another brand.

Glenn Conradt is the vice president, North America, at CoreMedia.