Facebook & Advertising
DBI : Synopsis.
In the last couple of years, Facebook, founded in 2004 by Mark Zuckerberg, has gone from a college photo-sharing site to a burgeoning business- networking platform for self-promotion, advertising and multimedia interaction. With new apps and add-ons, Facebook users can send each other a virtual drink, create and host events, advertise their businesses through social ads, and more. When Charlie Gibson hosted the debate for the 2008 presidential candidates along with Facebook, the little networking site became a powerhouse in the online-marketing community.
But will Facebook ever drive the Business of advertising ? How can Facebook Ads compete with Google Adwords and become the leader in the Business of Advertising ?
First, we should ask why do advertisers go online?
Going online allows better ad targeting and only targeting intended audience. It is possible to customize ads for each user.
The advertisers only pay when users click on the ad and track, which clicks translated to sales. That leads to better measures of ROI thanks to closer connection to buyers. Advertisers pay more for views by targeted individuals because of increased likelihood to “convert” into a sale.
The new online advertising inventory comes from social media like Facebook. This is a real success in the business of advertising but payment rates per Cost-Per-Click still low for social media compared to search engine and online display advertising (~5 cents) like Adwords.
What does Facebook offer advertisers?
The main advantage on Facebook for them is to reach the target customers. They are connected with more than 500 million potential customers. According to Social Media Today in 2010, it is estimated that 41,6% of the US population has a Facebook account and today more people are visiting Facebook than Google.
Moreover the advertisers can choose the audience by location, age and interests and test simple image and text-based ads and use what works. So
In the last couple of years, Facebook, founded in 2004 by Mark Zuckerberg, has gone from a college photo-sharing site to a burgeoning business- networking platform for self-promotion, advertising and multimedia interaction. With new apps and add-ons, Facebook users can send each other a virtual drink, create and host events, advertise their businesses through social ads, and more. When Charlie Gibson hosted the debate for the 2008 presidential candidates along with Facebook, the little networking site became a powerhouse in the online-marketing community.
But will Facebook ever drive the Business of advertising ? How can Facebook Ads compete with Google Adwords and become the leader in the Business of Advertising ?
First, we should ask why do advertisers go online?
Going online allows better ad targeting and only targeting intended audience. It is possible to customize ads for each user.
The advertisers only pay when users click on the ad and track, which clicks translated to sales. That leads to better measures of ROI thanks to closer connection to buyers. Advertisers pay more for views by targeted individuals because of increased likelihood to “convert” into a sale.
The new online advertising inventory comes from social media like Facebook. This is a real success in the business of advertising but payment rates per Cost-Per-Click still low for social media compared to search engine and online display advertising (~5 cents) like Adwords.
What does Facebook offer advertisers?
The main advantage on Facebook for them is to reach the target customers. They are connected with more than 500 million potential customers. According to Social Media Today in 2010, it is estimated that 41,6% of the US population has a Facebook account and today more people are visiting Facebook than Google.
Moreover the advertisers can choose the audience by location, age and interests and test simple image and text-based ads and use what works. So