Facebook is claiming more importance this year than ever before. According to Craig MacDonald, an online marketing buff, Facebook becomes the place to be seen this year. The number of companies doing marketing and advertising on this social networking site is increasing. Estimates reveal that companies are allocating a bigger budget on Facebook advertising, and that’s quite a big deal of funds for social media advertising.
Although Facebook suffered from awful clickthrough rates in the previous year, it is making things better now. It is surprising to see that this social media site now rivals established search engines (e.g. Google) as a popular internet marketing platform. Facebook is one of the most popular sites today with over 500 million members. At any given time, millions of people are on the social networking site, posting content or links and connecting with people. It is a powerful vessel, which can be tapped strategically for profit purposes.
In 2009, Facebook was the most popular domain in the United States and had nearly 9% of internet traffic in the country. Smart businesses and investors have noticed this wide audience involvement on Facebook that they have thought of ways to tap into even a small percentage of this immense audience pool. As online marketing investment is expected to grow in 2011, the number of businessmen who will use Facebook as a marketing platform is also predicted to increase.
According to experts, the crisis in the economy has prompted this shift in style of advertising and marketing. More investors are willing to try relatively novel forms of advertising, such as mobile advertising and social media marketing. These forms of marketing are cheaper than the traditional methods (TV and print media advertising). Another advantage of online marketing techniques is that they are generally easier to evaluate than old methods.
A recent survey indicates that the advertising revenue of Facebook has risen to $1.21 billion—that’s about £745. This revenue is expected to rise as more business owners are using the social networking site for marketing campaigns. More entrepreneurs and business owners are realizing that the popularity of social media sites is growing. Hence, they are becoming target sites for people doing marketing. It is virtually easy to advertise products and services on these sites. It would not take too long to create a business page or brand awareness.
The revenues acquired by Facebook can be compared to the revenues gained by major internet advertising platforms like Google and Yahoo. Of course, Facebook is ahead when it comes to popularity, but Yahoo has a bit higher revenue ($1.44 billion or £886 million). Facebook is not sitting idly with all these developments. It is continuously doing upgrades for both ordinary users and marketers.