The answer is simple. It depends. Awhile back I worked at a bar called Bamboo Willies which had its own Facebook page. For the bar it was an almost totally free way of advertising (the only real cost was the fact that someone was 'on the clock' whenever they were updating the Facebook page). The Bamboos page had a few thousand 'friends'. So imagine... Friday night there is an event, say a live band and drink specials. Bamboos writes about it on their wall and they know they are going to get the word out to AT LEAST 75% of their 'friends' (that's a conservative number, it could be 90% or more, it just depends on how many 'friends' check their Facebook everyday). In the bar and restaurant industry, social media sites are easily the least expensive and one of the most effective ways to bring people in. They can connect with hundreds or even thousands of people, essentially for free.
On the other hand, take a company like Coke. They are actually paying Facebook and other social media networks to do legitimate advertising on their websites. While the cost of advertising is not an issue for large companies like this and they are effectively able to reach millions everyday, some users may find the advertisements annoying. According to this LA Times article, nearly half of all advertising dollars ($1.68 billion) spent will go to Facebook. Obviously that is an outrageous amount of advertising and we can expect products to be pounded into our heads on Facebook and other social media sites in an almost subconscious way, with absolutely no end in sight. These advertising companies have found that this is an effective way to advertise... for now. Only time will tell whether or not people will become annoyed by constantly seeing ads, and if so, what effect it will have on purchasing.
Yes, I agree that social media is great for businesses, especially the small ones. This mode of advertising to gain market share can be achieved at little to no extra cost for businesses such as bars. I recall when I initially moved to Baltimore in 2006 and the only way I learnt about night life was through facebook pages of establishments posting upcoming events and promotions. Once I found out that, I could easily invite my other friends on facebook to attend. As you noted, the cost to a business like Bamboo Willies was simply paying an employee on the clock to update their facebook group page. In reality, social media marketing, in order to be successful, costs more than just a facebook group page. See my latest blog post for additional information.
ReplyDeleteIt is also interesting that you mention multinationals like Coke who have an enormous market share and can afford to advertise at any cost. What I really don't understand is why Coke would pay facebook to advertise for them. They are a household brand name in every part of the world. I personally would get aggravated if I saw content pushed at me like a popup on facebook. The day that happens is when I would stop patronizing facebook.
I fully support your opinion. I have noticed the same in Poland in my home city. My friend started a bar/club and for the purpose of promotion and informing customers about events etc. thier facebook page has been incredibly helpful. Social media boosted their sales and postioned them well in the entertainment business. But as you mentioned it is important to know how to weigh the amount of information given to potential customers. In my opinion the secret to success is to find the balance between satisfying and annoying customers.
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