When Facebook introduced their advertising platform they definitely could not have judged the kind of impact it would have on the social media marketing industry. Facebook ads have provided marketers with a lethal weapon that other channels could not provide: the ability to get to a large, active audience. Facebook’s total 2010 ad revenue of $2 billion gives an idea as to the reach and value of the medium. The similarities between performance-based targeting and Facebook advertising are uncanny. Marketers can choose if they want to pay depending on clicks or impressions and can base this decision on their ROI goal. Search marketers need to judge whether Facebook is more like Search or display advertising in order to create an ideal targeting strategy.
There is no restriction on who can use Facebook as an advertising medium. With the demographics of Facebook users becoming extremely diverse, most brands have a lucrative opportunity of reaching out to their audience via Facebook. If you are looking at a campaign that will generate sales instantly then Facebook might not be the best platform for you. On the other hand it’s a highly beneficial medium if you require reaching out to a specific set of people who are active and are more likely to be involved with the brand. The biggest advantage that Facebook provides is that it gives you an idea of the kind of reach you will have based on your parameters and that helps you decide whether or not you want to actually invest in the advertising method.
Understanding where your revenue is coming from is extremely important in the long run. Users need to be able to attribute the right kind of importance to the various media channels in order to effectively distribute advertising investment. More often than not, marketers assume that clicks are responsible for final purchase and hence end up spending more in hopes to generate more revenue.
Facebook advertising is definitely on its way to becoming an integral part of an overall marketing mix. With adequate research and understanding of the medium, marketers can definitely use it to its optimum potential and eventually boost revenue.