Facebook, under investors’ fire due to doubts whether it can generate income fast enough, is proving that partnering with small businesses saves the day: Advertising revenue is up by 61 percent to $1.6 billion – fueled by mobile and local ad sales.
Looking into the numbers, let’s just say that it’s about time for Facebook to capitalize on the assets. According to the new data released by Facebook, people are well-connected with small businesses on Facebook:
- There are more than 2 billion connections between local businesses and people.
- There are more than 645 million views on local business Facebook pages and 13 million comments on them.
- Seventy percent of monthly active Facebook users in the U.S. are engaged and connected to a local business.
Those stats show that the market is there. So, is it safe to say that Facebook and small businesses is a match made in heaven?
I think so. Let’s take a look at things from both sides.
Facebook and Small Business
Facebook Needs Small Businesses
Facebook can’t deny the fact that it has to perform better to please investors. Facebook shares that were priced way below the IPO price of $38/share in 2012 have started nearing the IPO price, closing at $36.80 on July 31, 8PM ET.
Small Businesses Need Facebook
As small businesses are looking for cheaper advertising option, they need a place to promote their products and services. Google AdWords is one and Facebook Ads is catching up and gaining more attention – and more ad revenue.
Although Facebook ads’ effectiveness is still pretty much questionable in delivering results other than the increase in the typical metric of “likes,” small businesses are still counting on Facebook ads with the hope of getting brand exposure as well as new leads – and hopefully, more sales.
Some evidence in the form of case studies – such as this case study on how Miishka, a fashion entrepreneur who built a sustainable business entirely on Facebook and is attracting 1,000 buyers in 6 months – can give an idea or two for small business owners on what Facebook for Business can offer them.
But still, when it comes to ad effectiveness, seeing is believing.
The typical result of Facebook ads is the increase in Likes. However, Facebook Likes alone won’t matter if you can’t translate that into leads or buyers. Looking into the case studies, Facebook ads seem promising. However, you need to be aware that the case studies represent some of the best cases.
Achieving similar results is very much possible – but challenging.
So, what’s your take? Are Facebook ads effective for your organization or are they benefiting Facebook more than the advertisers?
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