Advertising with Facebook has Grown Year on Year

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Source: Mashable

Advertising with Facebook has grown year on year. Therefore, it was a great surprise when General Motors pulled its $10 million budget from Facebook. Following this news, there has been a flurry of debates regarding whether or not Facebook is a worthwhile advertising and marketing investment. It also begs the question whether social media as a whole is a good investment.

Facebook is the world’s biggest ever media property, with 901 million active users and over 500 million daily logins. These statistics show the astronomical reach and frequency which Facebook has to offer, with a large amount of users being young, wealthy and well educated. Also, content such as statuses, posts and tweets can now be tagged and their conversions assessed. Monitoring systems such as Klout offer the service to determine how a social media platform is performing against its competitors and whether it has produced a significant ROI.

For the UK alone, Facebook has 30,945,100 users, 49.63% of the country’s population. In contrast to LinkedIn, which reaches just 13.42% of the UK population. Facebook users in the UK have increased by 1.52% in the last 6 months and by 2.30% in the last 3 months. The network along with LinkedIn and Twitter is constantly growing and the emergence of Google+, Pinterest and Quora has created exciting advertising and marketing opportunities.

A recent study showed that click through rates for Facebook display ads were up 18% when compared to 2011. The table below highlights the most popular and successful advertising categories. Further to this, in April 2012, 7% of all visits to a website came from Facebook, making Facebook the second biggest source of traffic in the UK, after Google.

CTR League

Source: TBG Digital

It must be remembered that Facebook offers more than advertising alone, with a number of fan pages, advertisers can promote their brands through social media. 500 hours are spent on Facebook in the UK every month, with the average session lasting 22 minutes. One Facebook fan to a company’s fan page means an additional 20 visits to the website each year.

With all of this in mind, it can be questioned whether or not General Motors made the right decision pulling their Facebook budget. With users ever increasing and strong results being achieved, Facebook along with Twitter and LinkedIn are proven as a successful marketing tools and ones which will continue to provide positive results.


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