About #Facebook And It’s Role For Business Marketing

Facebook is the “800-pound gorilla of the social media space” with “1 billion active users around the world.” (Zarrella 2013) It is said, “If Facebook users constituted a country, it would be the world’s third largest, behind China and India.” (Divol et al 2012)

Participants are those “from the youngest to the oldest and from the geekiest to the most technology unsavvy.” (Zarrella 2013) If you have to pick one channel that you have to use on social its Facebook. To note “The content you share and the interactions you entice your fans to engage in define how well you’ll do.” (Zarrella 2013)

Marketer’s goals is that “that content then gets likes, shares, and comments, leading to a highly engaged audience, which you can then direct to your website to convert into leads or customers.” (Zarrella 2013) Companies are said to “diligently establish Twitter feeds and branded Facebook pages, but few have a deep understanding of exactly how social media interacts with consumers to expand product and brand recognition, drive sales and profitability, and engender loyalty.” (Divol et al 2012)

Secondly, “Facebook is the dominant social-networking site, with an audience of approximately 160 million U.S. visitors each month.” (Lipsman 2012) It is estimated that “branded content on social media can take many forms, among them content shared directly from brands, re-shared content from connections, and social-marketing tools such as Facebook’s “Sponsored Stories” advertising unit.” (Lipsman 2012)

As well as “Facebook users spend more than a fourth of their time on the site consuming and interacting with the Facebook Newsfeed; this activity represents 4 percent of all time spent online in the United States.” (Lipsman 2012)

Social Media is said to “be reorientating the economy where now every consumer online is a commentator, reviewer and publisher where all organisations have to stop talking and start listening to how they are perceived.” (Smith 2010) Findings show that “social media could be a platform for brands to achieve the same desired outcome from their brand community activities; that is having more loyal customers.” (Laroche et al 2012)

Today some say that if you do not participate in Facebook, YouTube and Second life you are not part of the cyberspace anymore. It is a known fact that “companies invest millions of dollars in social media, with little understanding of how it influences consumers to favor their brands or buy their products.” (Divol et al 2012) However, “without knowing how social media affects consumer behavior, companies run the risk of aiming it at the wrong targets, wasting time and money on ineffective efforts, and generally failing to harness its potential.” (Divol et al 2012)

Thus it is very important for marketers to “understand social media’s core functions: to monitor, respond, amplify, and lead consumer behavior. Then look for the best opportunities to carry out those functions along the journey that consumers embark upon when they make purchasing decisions.” (Divol et al 2012) It is said that there are two types of potential audiences on Facebook “Fans of brands on Facebook (those who have explicitly “liked” a brand) are the easiest to reach with social-media brand impressions” as well as “friends of fans typically represent a much larger set of consumers.” (Lipsman 2012)

Social Media “allows firms to engage in timely and direct end-consumer contact at relatively low cost and higher levels of efficacy than can be achieved with more traditional communication tools.” (Kaplan et al 2010) However, due to all these great benefits Facebook can offer it is said to be failing marketers. (Elliot 2013) Firstly, Facebook offers too little guidance and support.

Secondly, “ it has quietly became almost entirely reliant upon Web 1.0 style display ads and simplistic targeting” (Elliot 2013) as well as “it no longer supports social marketing and only shows each brand’s posts to 16% of its fans.” It has become a traditional ad seller “where it created less business value than any other digital marketing opportunity.” (Elliot 2013)

To Facebook or not to Facebook?! #ditgitaleconomy

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