Facebook offers the feature to electronically meet many strangers around the world and befriend with them. As the network of friends grows, the scope of ad market is also increases.
The “like” option to any external webpage can take to the fan page of an advertiser and this is how Facebook grow their ad revenue. This seems to be a plus point for Facebook compared to other socializing websites. Others do not have this option to link fan pages and they rely on the Ads on search pages.
Ever wondered how it is possible to link external web pages to Facebook? They use Open-Graph protocol for this purpose. With Open Graph, it is much easier to link your webpage into the social graph. Just like Facebook pages, users can establish connections with social graph pages once they became the objects in the graph. So you can read an article on an online news paper and ‘Like’ it or comment on it as you do it within Facebook.
Revenue from the advertisement is the only income for Facebook. According to latest news, they are in the process of still raising the revenue through ads. They have hired some of the people who were part of developing Google’s Advertisement Network.
Their new strategy in advertising is going to make Facebook a real threat for Google Inc’s Ad networks and other competitors. Facebook’s marketing techniques are known to be ‘relationship marketing’ which differs from other forms of marketing in that it recognizes the long term value to the firm of keeping customers, as opposed to direct or ‘Intrusion’ marketing, which focuses upon acquisition of new clients by targeting majority demographics based upon prospective client lists.” (Source: Wikipeida).
Facebook finds the targets of an ad according to certain criteria such as country a person living, his age, sex, interests, work space, etc. They target a particular group of people with the ads. This gives more result than placing generic ads on the website.
Also to befriend with targeting people makes lot of differences and seems to be more effective. To them marketing is about making relationships than an immediate sale.
But there are negative sides too on the other hand. Fan pages of each advertisement in Facebook gives a ‘trusted referrals’. They lead to only positive reviews and recommendations. You do not get a real-life recommendation about the ads posted there.
Search engine marketing usually attracts more people. Facebook advertising might take long time to establish a relationship and convert it into sales. Hence small business owners may not prefer to invest on this.
It is also a known fact that Facebook is prone to vulnerable attacks and hacks. DoS (Denial of Service) attack happened to Facebook in the past and similar situations may make users hesitate to come back to this site.
However, kudos to Facebook’s Ad strategy. Their popularity and their demographic and geographic targeting of people can surely overcome these cons and it is going to be a beginning of a huge Ad Venture in the web space!!!
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