Is Facebook Marketing Good for Small Businesses?

Facebook is a social networking site that has more than 900 million users as of 2012. It is the most popular networking site in many countries, including the United States. Facebook launched a portal in 2011 that will help marketers promote their brands on Facebook. The determination of whether or not Facebook marketing is beneficial for a small business requires you to consider many factors, such as the customers, budget and objectives of the business.


The usefulness of Facebook as a marketing tool requires an accurate estimate of the number of small businesses that use this form of social media. This number is difficult to estimate due to the large variation between sources. Almost 50 percent of small businesses don’t use social networking at all according to Hiscox, an insurance company for small businesses. Facebook only accounted for 19 percent of the businesses that use social media in this survey. Palore is an Internet marketing firm that surveyed small businesses about their use of social media. This survey showed that 54.2 percent of small businesses have a Facebook page and 22.3 percent of small businesses have a Twitter account and a Facebook page.


Customer engagement is a primary factor in determining the effectiveness of a marketing strategy. Facebook is more likely to be useful for large businesses that have stores in many locations. The Roost Local Scorecard is an analysis of Facebook pages for small businesses. This analysis found that an average of 15 percent of the “likes” on the Facebook page for a small business were from local users, which means that a Facebook page would provide little benefit for small businesses.


A business must consider the cost of a particular marketing strategy, especially small businesses with limited financial resources. Facebook does not charge a fee for creating a Facebook page, but a Facebook page used to market a business requires a substantial investment of time and money. This includes the resources needed to update the page with fresh content and respond to comments. A large business typically hires consultants to maintain a Facebook presence, but small businesses often must perform these tasks themselves.


The effectiveness of Facebook also depends on your specific marketing objective. Small businesses typically rely on sales leads more than brand awareness to increase revenue. Facebook can be highly effective in building brand awareness, but it is less able to generate sales leads. A lead generation program that consists of rewarding people for referrals is often more beneficial to small businesses. These businesses may generate leads with a direct mail campaign. Webmaster tools can also allow small businesses to implement pay-per-click and SEO campaigns.

About Steve Baik is a pioneer in the free search engine submission industry and has been providing valuable web tools and resources for small business owners since 1996. Sign up for our free newsletter to receive the latest info on SEO and Internet Marketing.
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4 Responses to Is Facebook Marketing Good for Small Businesses?

  1. You really make it seem so easy together with your presentation but I find this matter to be actually something that I think I’d never understand. It kind of feels too complicated and extremely extensive for me. I’m looking ahead on your next post, I will attempt to get the cling of it!

  2. A small business will create massive things happen by successfully utilizing their Fan Page. Facebook promoting is absolutely concerning linking along with your community members in a very positive and private manner. after you acknowledge your fans, you create them aware that they’re vital to you, instilling empathy and loyalty which will facilitate your business grow in ways in which you had never thought doable.

  3. A contest, whether or not weekly, bi-weekly or monthly, will go an extended approach keep individuals concerned in your Facebook Fan Page. supply a prize of some type related to the competition and create it fun.

  4. Bang on Target. Facebook is really becoming one superb platform for Social Media Marketing in fact to be honest it is one of the best in this Business. I was just looking at the tips and to my amazement they do have this superb feature through you can target your market with precision and impeccability.
    Facebook is not only playing its part in making the world literally a global village but it has also worked to make a business out of it. The other day I was discussing about the benefits of advertising your business via Facebook. If we consider Facebook as a country, with a population touching merely 450 million users it would be ranked 6th according to population. Targeting these 450 million users using a single banner advertisement is not only cheap as the reach per person will be quite low but will also yield great output as the advertisement can be targeted explicitly.

    So Facebook is really on a Roll!!!

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