Since Facebook went public, companies are now able to purchase advertising on this particular platform. These advertisements show up on the far right side of my newsfeed. What exactly is it that these companies are hoping to gain? Do they want me to go to their Facebook page? Do they want me to go to their website? Or do they want me to make a purchase? Apparently there are now 3 different ways that companies can purchase fan likes for their pages. These three are 1) cost per thousand impressions 2) cost per click or 3) cost per action. Respectively each option becomes more specific and ultimately more expensive. Each company has a different value for their fans. For Zara values one of their Facebook fans at $400 while Coca-Cola values their fans at $70. My question is where does the difference in value come from. Is it because Zaras fans are more likely to spend money at Zara? However, it is also pertinent that companies understand that not all of their fans are the same. Not all fans are "created equal." Some customers become fans of companies pages and are going to consistently make purchases, but other customers become fans simply because they have aspirations to make purchases but cannot afford to.
The ultimate question is it worth it for companies to purchase Facebook fans. Honestly, it all depends. Now that is the answer to most business questions, but it is very true. It is up to the company to decide at its core what it hopes to gain from its potential Facebook fans. If the company just wants to have engagement with their potential consumers then it would be very logical to make the purchase, but companies should not just throw away their money simply to increase their Facebook numbers. As social media platforms continue to develop, companies are going to have to seriously look at their budgets and be very strategic when allocating funds to the different platforms. These decisions cannot be made on a wim, but they must be strategic decisions that fall in line with the companies plans and goals for the future.
I completely agree with your post Mary Elizabeth. I myself have constantly wondered about the advertisements posted along the side of my news feed when I log onto Facebook, and the motives behind the companies responsible for posting them. It will be interesting to see where the future goes for businesses who are trying to increase their presence on social media by purchasing followers and fans through Facebook.
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