In 2004, Mark Zuckerberg created a simple website for his fellow Harvard students. It was intended for networking and communication and quickly branched out to additional colleges and people. This site, Facebook, would eventually become a massive Internet superpower frequented not only by students but also friends, strangers, celebrities and organizations. Though Facebook is widely considered to be a social website, its original mission of networking continues to this day. Many businesses have found a home there, using the platform to boost their popularity and sales.
Facebook’s Business Model
Facebook helps businesses in many ways. First and foremost, they do this through advertising. In fact, since Facebook doesn’t require its users to pay a membership fee, they’ve become dependent on ad revenue. It’s a business model that’s been employed for a long time; before the Internet’s creation, radios, magazines and television stations all relied on ads. Facebook has found great success in advertising; in 2017, they made approximately $39,942,000 just through ads. In exchange for this sum, businesses have gained massive traction on the website, increasing their sales and clientele.
However, paid advertising is not the only thing Facebook offers businesses. Thanks to the sheer amount of people on Facebook, earning word-of-mouth advertising is equally common. Facebook pages don’t have hours of operation; they allow people unfiltered access to their products or services 24/7. As clients or curious newcomers interact with the business’s posts, they also share it with their friends.
For example, say a local ice cream shop hosts a giveaway on their Facebook group. Anyone in the community can share that post to their own timeline, giving the shop free advertising. In fact, Facebook has evolved over the years, making it much easier for people to see what their friends are doing. Now, if a user so much as comments on or likes a post, it can show up in their friends’ timelines. It’s made it easy for a business to acquire earned advertising.
Modern Advertising with Facebook
Facebook has made many similar, small adjustments over the years. Facebook walls became timelines, with different classes of pages depending on the need. If a user wants a personal page, they can still do that, but there are also individualized pages for community figures, freelancers, non-profits and other types of organizations. Facebook reviews changed to recommendations to encourage additional exposure and to prevent the potential negative effects of word-of-mouth promotion. Recommended posts now appear in timelines alongside regular posts, broadening the number of businesses a user can interact with on any given day.
Facebook needs businesses, and businesses need Facebook. In this modern age, businesses need an internet presence to survive. Bigger names do this through a company website, but not all organizations have the resources or budget to maintain one. In that respect, Facebook makes for an excellent middle ground. When people research a business, a Facebook page is sometimes all it takes to give them the information they need. Even if a business does have its own website, a Facebook page supplements it, drawing traffic from more sources and giving the business additional opportunities to connect with new or returning customers.
Communication is the backbone of marketing and sales. Facebook enables effective communication and helps businesses build and maintain strong customer bases, gain Internet popularity and find success in the modern era. In return, the businesses contribute to the site’s ad revenue and give Facebook’s users a reason to keep coming back. Both have adapted to help each other, and they will continue changing for a long time.
Social media advertising through Facebook is just one of the many means of using social media marketing to advance your business. Rockstar Designs believes in providing the best quality marketing services and website design for your business. Contact us today to see how we can drive new customers and deliver a high R.O.I. for your business.