The viability of Facebook as an advertising platform has been reaffirmed with the announcement that 1 million advertisers now use the social network.
1 Million Advertisers Can’t Be Wrong
Originally built as a way for university students to connect with classmates, over the past 10 years Facebook has moved well beyond this initial business model. By expanding its own services Facebook has become an engagement and public opinion platform, in addition to being a way to stay in touch with friends and family.
Through its advertising and marketing tools, Facebook gives businesses the ability engage with fans, receive customer feedback, build a brand and promote products through advertising.
The number of businesses that use Facebook for advertising and marketing purposes isn't surprising, as it's one of many social networks that provide free and cost efficient services to its users. With this in mind, Facebook has become a place where SMBs can make a marketing and advertising impact -- which is where most of the one million advertisers came from according to multiple reports, such as those from Mashable and the Business Insider.
According to Facebook, there are more than 2 billion connections between local businesses and people, said Laura Stampler. “Every week, 645 million people view and 13 million comment on local businesses pages.”
Along with a few basic tools, such as fan pages, social media integration and content posting with photos, status updates and video, Facebook has a suite of marketing tools. These include comment and subscribe plug-ins, the graph search, partner categories and banner ads.
A Facebook Benefit
As the amount of businesses using Facebook grows, the social network also benefits from this activity through advertising revenue.
According to a report from late 2012, compared to other social networks Facebook had 18 percent of the total mobile revenue for that year, while in May it was noted that for the first quarter of 2013 the company made US$ 1.46 billion in revenue, with US $1.25 billion of that coming from advertisers.
Advertising accounts for 85 percent of Facebook's revenue -- which also includes dollars from the world's largest brands and advertising agencies,” said Jennifer Saba. “…Last quarter, Facebook reported first-quarter revenue of $1.46 billion. Advertising revenue rose 43 percent, the fastest growth rate since the end of 2011.”
Overall, these numbers show that not only is Facebook a worthwhile adverting platform, but that social media is definitely a beneficial way for businesses to connect with fans and customers.