Sponsored Post on Facebook and How They Work
A sponsored post or promoted post on Facebook is a post in which the author can pay a fee in order to increase the visibility of that post to a larger group of people. Visually, a sponsored post looks exactly the same as a normal post on Facebook with only one difference, that is has a “sponsored” label on the bottom left corner. You can use post sponsorship to promote many different things n Facebook such as email submits, offers, photos, videos and statuses. Facebook’s sponsored posts gives the author a large amount of flexibility in terms of how they can maximize the advertising power of this.
Who will see my sponsored post?
Sponsored posts will show up in the news feed of your friends and followers or fans if you are using a fan page. When you sponsor a post, it will become visible to a much larger amount of your audience. Facebook uses a complicated algorithm which sorts out the different stories which it thinks should be seen by its relevant audience. It is a tough algorithm. It is estimated that only around 16% of a given audience will actually see a given post without sponsorship. This is pretty darn low and if you are trying to earn a living in this way, you are missing out on a lot of potential business. If you make a post on Facebook to 5,000 fans, only about 800 will actually see it. That means that 4,200, or in other words, pretty much all of you fans will not be see the post show up in their feed.
This is why sponsored posts are so powerful. They can help get your post seen by a much larger percentage of your fans. You worked hard creating a fan page and adding relevant users to it so make sure that as many of them can see it as possible. Otherwise, you are leaving money on the table and wasting a highly targeted audience.
The downside of sponsored posts, actually the two downsides are that it costs money, obviously, and that your audience is limited to your friends, your friends friends and fans. This means you will not have the same type of reach that you would have with an alternative like Facebook ads. The plus side is that they are much much more visible and that means the relatively low amount of people that see them will be much more likely to act upon them.
The placment of the Facebook ad is huge and that is the main advantage that sponsored posts have over normal ads. Sponsored ads are also a great way to expand while at the same time, staying within your niche. Either geographically or niche wise, to a large extent.