A Short Facebook History
First a bit of Facebook history:
Lets take a look at a beautiful infographic thanks to Online Schools. Here’s a breakdown the data. With over 500 million users, Facebook is now used by 1 in every 13 people on earth, with over 250 million of them (over 50%) who log in every day. The average user still has about 130 friends, but that should expand in 2011. 48% of 18-34 year olds check Facebook when they wake up, with 28% doing so before even getting out of bed. The 35+ demographic is growing rapidly, now with over 30% of the entire Facebook user base. The core 18-24 year old segment is now growing the fastest at 74% year on year. Almost 72% of all US internet users are on now Facebook, while 70% of the entire user base is located outside of the US.
Here’s a timeline of Facebook’s facts and figures from 2010.
You may not be aware of how big Facebook has become. Well in August of 2010 Facebook overtook Google in the amount of traffic it attracted. That’s huge deal. It not only has 500 million users but now it’s actually traffic has exceeded that of Google.
For the longest time people were wondering what the next Google was going to be. Many thought it would be another search engine but they were wrong. It has turned out to be a social network site – Facebook to be exact.
During the year of 2010 the traffic to Facebook increased 45.57%. Googles continued to grow but Yahoo saw a decline.
There is a lot of talk about the growth in social networks and social media but the lions share is going to Facebook. Others are in the picture of course such as: Twitter, YouTube for example.
Most of Facebook usage is private – around 97%. There are ways of monitoring an individuals status but there is no way to reply to them because of the privacy controls. YouTube is mostly dominated by teenagers talking a load of c_ _ p. Excuse the french, but for most marketing efforts it is not something that we really need to be talking about. It can be used for it’s video hosting and streaming but as a place to reach others in the community with your message it’s not an intelligent crowd.
Twitter is 1/17th the size of Facebook so is not nearly as important. A great communication tool when used right but not in the same league as Facebook by a long shot.
Many people ask the question should I be marketing with Facebook or Twitter? To do a quick comparison:
Facebook vs Twitter
|Popularity||3.4mm visits in Sept 2010||212,000 visits|
|Advertising||Intergrated and extensive||3rd party, limited|
|Media||Text, video, pictures, polls,links||Text, links|
|Best use||Marketing platform||Networking with influencers|
To summarise, Facebook is definitely the platform you want to use if you are interested in marketing. Twitter is the best option for networking with other influencers.
60% of internet users are on Facebook and 50% of Americans are on Facebook. The numbers are just staggering when you think about it. The platform literally allows all of these users to interact with one another. It’s historic. Never before in history have people been able to do this.
Well the question that we all ask ourselves is how can we use the power of a network like Facebook to build our business and increase our bottom line?
What is the ROI of Social Media? Is it really valid question? How do you access the ROI of TV, Radio or Print Ads? It’s difficult. There are ways but it’s difficult to make an accurate judgement. Generally the cost per thousand (ie. The cost of getting your message per 1,000 eyeballs – CPM) is going to be anything from $3 up to $32 per 1,000 using these traditional media. The cost of CPM with Facebook is only about $0.25.
What’s the real question? It’s should I invest in Facebook? The answer is going to be different depending on the company, the business, who is asking the question. A larger coporation that is heavily investing in TV advertising with a large budget would probably not be a good candidate for Facebook marketing.
The importance of establishing priorities for the small business with a limited budget can not be overstressed. For those on a limited budget:
- Adwords and SEO – the low hanging fruit. You are providing a product or service which directly meets the searches that people are entering into the search engines.
- Conversion Optimisation – making sure that your website is not a leaky bucket. You have a sales funnel in place that converts your visitors into buyers.
- Facebook – the source of more prospects.
- The realm of magic…
Facebook is the one place where you can own your audience. On Facebook there are 3 kinds of advertising. 1. Paid, 2. Owned and 3. Earned. Paid means that you are using paid ads on Facebook to reach out to your potential customers. Owned relates to the Fan page option that Facebook provides where you basically have a captive audience of fans who can become your loyal customers too. Fans are really your audience. Your fan base should equal: 10-20% of the local population or 10x as many as the customers you want or 10x the size of your email list.
Facebook Audience Value
|Audience Size||Post Impressions||Advertising Value @ $5 CPM||Annual Value|
|1000||700||$3.50 per day||$1,277.50|
|10000||7000||$35 per day||$12,775.00|
|100000||70,0000||$350 per day||$127,750.00|
|1000000||700000||$3,500 per day||$1,277,500.00|
The way Facebook posts work not everyone of your fans is going to see you post so that’s why on the chart the post impressions is lower than the audience size. Companies like RedBull have a fan base of something in the order of 9,000,000. So that audience size has incredible value to them.
Have a fan page allows you to engage with a lot of people in a very real way. One boxing fan page got 1800 fans for $140. They place content on the fan page and are getting 1.5% feedback from members. A vacation rental company got 3,000 fans in 23 days for a cost of $0.31 per fan. A $1044 to get 3300 fans and they are now getting around 2% feedback on contact they place on the fan page. Another fan page of a company also in the vacation rental market saw their bookings triple once their fan base reached 15,000. Once you reach a point of critical mass the business growth can be exponential.
A restaurant that was about to go out of business hooked up with another company that was on facebook, a health spa which had a fan base of about 50,000, and the restaurant is now one of the most popular in the area.
A Fortune 1000 company generated 260,000 fans in 3 months, 62% of the fans were from word of mouth, 99,122 fans came directly from paid ads at a total cost of $13,758.22, that’s a cost of $0.14 per fan and when worked out per total new fans generated the cost per fan was $0.053.
There a four stages of Facebook Marketing
- Build a fan page
- Build an audience
- Engage that audience
- Get more business
Just like in all marketing the AIDA principle applies
- Attention – you their attention
- Interest – you engage their interested
- Desire – you arouse their desire
- Action – you get them to take action
How important is engagement? Engagement is critical to visability. Not everybody in your fan base is going to see all your posts. As few as 20% of your fans are going to see your post with 0.1% feedback. But if your posts get about 1% feedback you they’ll be seen by around 70% of fans. It’s not enough to get the fans you must have interaction. This is covered in detail in a later article.
What is FaceBook advertising? I’ll be covering it at a later date, but to review it here. To compare it to Google Adwords, Google Adwords finds people via Keywords whereas facebook finds people via what they like, their interests. Adwords demographic targeting is very limited but facebook demographics targeting is very accurate. Facebook provides information like age, marital status… very specific demographic data. Geographic location.
Adwords average click cost is $2.50 vs facebooks average cost per click is $0.80. Costs can be way lower once you’ve done your homework.
With Google you are only reaching people who are already looking for what you offer. Facebook can help you reach more prospects and change the minds of prospects higher up in the funnel. Google is about the low hanging fruit while facebook is about owning your audience.
This is has been an overview of the power of facebook.