How can Businesses Relate to Social Media Users?

June 24, 2012 · Posted in Online Marketing 

Recently in a poll conducted by Reuters it was found that eighty percent of Facebook users have not purchased an item due to a company’s advertisement on Facebook. That is huge when you consider Facebook has almost a billion users almost one-seventh of the total population on Earth and that many people are deciding that the advertisements by web marketing company’s on Facebook are not worth their time.

The amount of money that companies are spending to reach consumers on Facebook only to have their advertisements ignored is massive. If there are hundreds of millions of people that are looking at Facebook advertisements and not bothering to click, it suggests to me that companies are wasting their time trying to reach the people they want to buy their products. Marketing companies in order to be successful on Facebook have to go back to the drawing board.

Large companies are now wondering whether or not the investment of advertising on Facebook is worth it in the long-run. General Motors recently announced they were getting rid of their advertising on Facebook deciding that the returns they were getting back were not worth it for the company on their balance sheet. It was estimated that GM was spending $10 million a year to advertise on Facebook before they pulled their advertisements.

It seems like a struggle to effectively advertise on Facebook however I think there are ways companies can use it effectively. I believe in order for a web marketing company to succeed on Facebook they need to spend time talking to the users of Facebook directly. You cannot get an idea of advertising to them based on a couple of likes on their wall, you need to ask questions to them about what other things they like and dislike and maybe use that as a basis for the certain demographics that companies and advertising firms need to target for their long-term investment to be a success.

With the huge userbase of Facebook ignoring the marketing potential of the site would be a tremendous loss for web marketing companies. If a company can find a way to properly tap into the right way to effectively advertise to the users on Facebook it will end up leading to huge revenue for everybody involved.

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