Advertising company engage:BDR (ASX: EN1) has officially kicked off the first phase of its Facebook paid social strategy ahead of schedule due to strong customer demand.
As part of the roll-out, the company’s clients will be able to target extremely niche audiences deemed otherwise nearly impossible to reach.
Advertisements on Facebook utilise users’ unique profiles as targeting metrics to allow brands to reach their most appropriate potential customers.
Engage:BDR said that while the phase one launch had initially been targeted for Q3, strong customer demand had prompted management to launch the product significantly ahead of schedule.
The company has had a long history with one world’s most popular social media platforms, starting in 2010. Initially, engage:BDR was a certified ad provider for Facebook app developers with the company subsequently becoming a top inventory provider on Facebook’s video ad exchange, LiveRail.
However, up until now, engage:BDR did not sell Facebook’s core-advertising product.
The company, which already specialises in programmatic advertising and influencer marketing, said it had now reached the trifecta of digital media capabilities following the launch of paid social.
Phase one strategy
With over 2.3 billion unique monthly users and more than 1.5 billion active daily users, Facebook is considered a top platform for return on investment growth.
Facebook’s advertising technology helps new and emerging brands to drive awareness, while simultaneously driving traffic to the brand’s site and storefront
According to engage:BDR, its technique of consistent optimisations and refreshing creative ad sets generates a positive return on advertising spend and scalability for its clients.
“Management plans to begin cross-selling this service immediately and is highly optimistic about this method’s positive contribution to profitability,” the company added.
“Facebook’s popularity is not likely to decline in the near future, making it a highly viable channel to engage with.”
Customers of IconicReach, engage:BDR’s influencer platform, will be the first to join the paid social strategy given the strong synergies.
Other phases of the paid social strategy will include additional social advertising platforms such as Instagram and YouTube, as well as customer and user interfaces and technology to manage workflow.
Enagge:BDR is confident the ability to cross-sell and leverage paid social expertise will enable it to tap into more of the brands’ budgets, potentially increasing the dollars spent by customers, and attract new customers who would start with paid social.
Potential acquisition back on radar
Engage:BDR is looking to further ramp up its paid social strategy, with the company announcing it is considering an Australian-based paid social acquisition.
While the company had discussions with numerous companies across the global last year, engage:BDR made the decision to postpone the opportunity due to dilution concerns.
However, a potential acquisition is now back on the radar, with engage:BDR currently assessing an opportunity to acquire a “thriving Australian-based paid social business”.
“A company in Australia would provide engage:BDR tangibility with local clients and a team familiar with the landscape,” it said.
“Additionally, this could be a catalyst for engage:BDR’s programmatic and influencer businesses to be introduced to more Australian customers.”
The company will keep the market updated if and when formal agreements materialise.