A business Facebook page should be part of your overall social marketing strategy, but you should temper your expectations. Facebook does provide some benefit, as defined by convertible leads to your website, through PPC within the Facebook network. Ads are based on clicks, and will generally be less expensive than most other pay-per-click
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Over the past few years, the positive impact of Facebook to small businesses has been proliferating, generating up to billions of dollars in revenue. In fact, studies show that 80% of people said that advertisements and comments on Facebook had led them to make purchases.
Unlike the conventional yellow pages, or media print and television ads, Facebook does not only allow small businesses to advertise their products, but they provide more marketing control and data through the friends list feature. It provides a demographic element where business pages will have a wider scope of communication and unlimited promotional means to all the people who follow and like their pages.
For instance, businesses can offer discount coupons, raffles, and incentive promos, as well as organize contests and events, and other forms of advertising while making them viral within business' page circle of followers and on down to the followers of their followers. Facebook can provide business owners the opportunity to grow their community through potential customers who may be loyal to them for many years to come.
Unlike other social networking accounts where posts are limited to 140 characters as with Twitter
, or photo-only updates allowed as with Instagram and Pinterest
; with Facebook, advertising options are unlimited and simplified; one only has to be diligent and creative enough in order to succeed.
Facebook offers a huge audience, whether for a local or global market. With over one billion active users and 23% of those being logged in at least five times per day, Facebook is the largest engaged social network in the world. This gives businesses the opportunity to communicate to a wider scope of audience, both for their existing or potential new customers.
How? By starting a focus group locally around the business' area or state that will have greater chances of increasing community across states, and maybe globally. Think of it as having a focus group first, and through great promotional updates and word-of-mouth strategies, potential customers can increase in numbers.
Also, while followers are waiting for useful information, businesses may also collect useful information about what they really want and how they can be more satisfied through customers' reviews, comments and interaction, which they can use to effectively improve or grow their business. Their communication tools can go from directly messaging customers, to creating group threads, right down to creating group chats and sending them documentary files and even videos. This creates a richer, engaging, and more personalized means of communication.
Facebook creates greater business density. After a small business has created their page and begins having numerous friends and followers, the next step to branding is creating business leverage. This can be done by creating word-of-mouth through the "likes" from the page and news feeds of the business' followers.
Studies show that new customers are more likely to try a business if their friends already use it. The more people like the page, the more people talk about a business product or service, and the more people promote a certain business. This creates a call for loyalty and trust, and this is something a potential customer cannot resist. Their response to trying a new product will more likely be positive. Word-of-mouth creates branding and a better chance for small businesses to grow.
Facebook has a competitive advantage to cost over other social networking platforms. The amount a business pays depends on how many people they want to reach. There are three options for Ad's cost, perfect for small businesses that are still starting up.
The first one is through a daily budget or a lifetime budget for ads that corresponds to a number of estimated new likes per day. The budget can be as low as $5 daily to as high as they want it to be. Choosing a larger amount means more people will see that ad encouraging them to like the page; providing a greater chance to reach a wider scope of audience. For instance, if the budget is $10 per day, Facebook will only show the ad to a certain number of people in the group generating an estimated 47 likes daily.
If a business decides to invest in a bigger budget, for example, $20, this will generate more likes of an estimated amount of 95 likes per day. The business can decide how long their ad campaign will last, but each day begins at midnight. This means that if an ad was posted at 8 pm, the ad would only last for 4 hours before the daily budget will reset. So, a small business must not only maximize their budget, but also the time they will post their ad.
Next, businesses can choose Cost Per Click where Facebook suggests bidding for the ad's click. The lowest bid is as low as one cent, but the cost one is willing to pay increases the chance to win the auction among ads similar to the campaign. Raising the amount of the bid makes the campaign more competitive.
The last one is through Cost Per Mile ad campaign where the cost the business pays is per thousand impressions. This means that every time an ad is shown to a user, it is considered one count of "impression." So, it does not matter how many clicks one ad gets, but the amount one pays depends on how many times the ad was displayed to their followers and friend's list.