After filing for an IPO, Facebook has been the center of attraction for all. The company has also begun trading on NASDAQ. It is worth noticing that Facebook derives 85% of its revenues from ads and the rest from fees and social gaming. This data brings to light the popularity of Facebook ads and the quantum of people using them for businesses.
Facebook ads have become more prominent every year ever since their beginning in 2007. The number of appearances in the newsfeeds has been rising with it being three in 2009, four in 2010 and up to seven in 2011.
Advantages of Facebook Ads for business:
- It is anybody’s guess that advertising on Facebook is an excellent way to make your product go viral taking into consideration the huge user base of the website. There can be no other media to reach such a huge prospective clientele as Facebook.
- Through Facebook ads you can target specific audience for your business. They enable you to select the audience on the basis of education, location, relationships, age, language and a number of other criteria. There is also a possibility of marking different demographic combinations.
- Ads on Facebook can prove to be a boon for small businesses. If you decide to advertise your business through Facebook ads, you have the liberty to choose your audience, the time when you wish your ad to pop up and also the budget allocation that you want to go for viz. pay per click or bulk. PPC or pay per click makes it cost-effective and solely results based. This also allows you enough freedom to begin your campaign with a small budget, carry out a test on audience of different demographics and thereafter alter the campaign in accordance with the response that you get from the target audience.
- When compared to other websites offering similar advertising features, Facebook ads are a better place to broadcast blogs, events, websites and other events that are connected to your business growth. Facebook has privacy settings that enable selective exposure to people and groups, thus making it easier for marketers to filter traffic and target only the relevant audience.
Disadvantages of Facebook Ads:
- The reporting tools of Facebook are quite limited. Although Facebook ads appear to be totally transparent enabling you an access to parameters such as frequency, reach, clicks etc. but what you need to familiarize yourself with is the way Facebook defines those metrics.
- Advertising on Facebook is a trial and error method. It cannot be said for certainty that you will be able to target the correct audience with the very first attempt and that the audience will respond to your campaign as expected by you. Hence it is advised that those beginning from scratch or those who are new to social media campaigning should not overwhelmingly spend on Facebook advertising right away.
- Facebook ads have become invasive with time. In the beginning one saw them only in the news feed but now they are everywhere, from timelines to photos and more. This can create a bad image of your brand in the user’s eye. Also anyone and everyone can create Facebook ads. Both these factors are bringing Facebook ad campaigns on an equal pedestal as spamming which is not good for your brand reputation.
To conclude, we can say that it is no surprise that the pros outweigh the cons of using Facebook ads for business. There are no two ways about the fact that it is a great tool that has benefited a lot of business owners. Facebook ads offer business owners a variety of filters and techniques that enable them reach their target audience. Facebook ads also spread through word of mouth since there is a huge probability that you “like” a particular business that your friend likes and has recommended it to you.
So why is the delay? It’s time to start exploring Facebook with a view to expand your business; however caution must be exercised in deciding the correct advertising strategy.