Plugging into FB's user identification gives you way more than just location. Targeting and performance/conversion tracking.
To give you an example, imagine you own a gym and you are recruiting members. I think with a really well targeted campaign to 1,000 people could yield a 5% signup rate over a month, 50 people. That's a guess, but I think it's not unreasonable. Most gyms would gladly pay $50-$100 per member for that result, so $2,500-$5,000 to target 1,000 people.
That means a single SME advertiser could pay half the current price of a netflix subscription for a 1000 . Obviously, those 1,000 people will be targeted by more than one advertiser.
Targeting & performance tracking are super enhancers. A significant improvement in either of these can yield 10X improvements in ad performance and similar increases in ad revenue. Scale is very important. So are supporting assets, good data sources and ways of creating links between them.
FB already has the best (by far, IMO) platform for creating target groups and one of the best platforms for attribution/performance tracking/conversion tracking. You can upload a list of you gym members and get back an "audience" of their friends, who are 25-40, live in the area… Then you can subdivide it into single women, married women, married men, single men, etc. and try different ads for different people. That's the kind of improvement over TV ads that creates a 1000X increase in value per second of advertising airtime.
*Reading back, it seems from my comments that I'm asserting a lot of things fairly confidently. Obviously, this is a lot of speculation and guestimates based on my understanding of the ad economy and my experience as a buyer.
To give you an example, imagine you own a gym and you are recruiting members. I think with a really well targeted campaign to 1,000 people could yield a 5% signup rate over a month, 50 people. That's a guess, but I think it's not unreasonable. Most gyms would gladly pay $50-$100 per member for that result, so $2,500-$5,000 to target 1,000 people.
That means a single SME advertiser could pay half the current price of a netflix subscription for a 1000 . Obviously, those 1,000 people will be targeted by more than one advertiser.
Targeting & performance tracking are super enhancers. A significant improvement in either of these can yield 10X improvements in ad performance and similar increases in ad revenue. Scale is very important. So are supporting assets, good data sources and ways of creating links between them.
FB already has the best (by far, IMO) platform for creating target groups and one of the best platforms for attribution/performance tracking/conversion tracking. You can upload a list of you gym members and get back an "audience" of their friends, who are 25-40, live in the area… Then you can subdivide it into single women, married women, married men, single men, etc. and try different ads for different people. That's the kind of improvement over TV ads that creates a 1000X increase in value per second of advertising airtime.
*Reading back, it seems from my comments that I'm asserting a lot of things fairly confidently. Obviously, this is a lot of speculation and guestimates based on my understanding of the ad economy and my experience as a buyer.