Facebook is by far and the above the most popular social media platform around at the moment. It has the highest number of users the world over and of those, many of them access their Facebook account at least once a day. In the good old days businesses could put on Facebook details of promotions, news of new products or services or any other information. These days however, it`s not so simple. Facebook still allows businesses to promote themselves to their community, it`s just that now you have pay.
To be able to understand the true value of Facebook advertising, we need to look at the pros and cons of it for a business.
Pro – Targeted Marketing
When you are setting up your advert you can put in specific demographics meaning that your advert will be reaching people in your target audience. You can put in age categories, interests, location or gender details making your campaign more targeted to those most likely to buy or at least show an interest.
Con – You Have To Pay
Unfortunately no-one gives away advertising for free these days, and Facebook is no different. This does however give you the opportunity to quantify your results as you will be able to see the direct result of any financial outgoing. Compare the amount that you have spent with the number of `likes` that you have and there you will be able to see your ROI (return on investment). What is an acceptable ROI will differ according to business, so it is up to you to decide whether it is worth it for you and your business.
Pro – Image
For companies who are aiming their products and services at the younger generation, it is vital that they have a strong presence on social media. By being associated with Facebook – albeit through paid advertising – a business is showing those that by using Facebook, they understand its importance. This goes a long way to forming a bond between the business and their potential customer base. By using paid advertising, you are not only showing that you appreciate its importance, but also that you are prepared to invest in it.
Pro – The Future
One of the best things about Facebook is their vision for the future. Due to the fact that they make an income from their advertising, they are looking to constantly improve the experience for both the businesses and the consumer. This can be in the form of information given to businesses about who is looking at and getting involved in their output, as well as giving information to Facebook `members` about which of their friends are interested in products. Businesses will be able to target better those people who are more likely to join/buy/follow, therefore being more productive for a business and less annoying for members.
It has been said that in 60% companies of a batch of 60, Facebook advertising has generated an ROI of three times or better, and in 50%, five times or better. Something obviously seems to be working for these companies.
So in answer to the question, Facebook advertising, is it worth it? Well, each business needs to monitor their own results and outcome, but it does seem that it certainly is for many businesses.
Digital Marketing Manager
The Internet Marketing Academy
(Image courtesy of dollarphotoclub)