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Facebook can be a marketing tool
for small businesses
Written
by Shirley Lichti for The Record, November 21, 2007
Founded as a way for U.S. college students
to stay connected, Facebook has evolved into an online social network
that is open to anyone. Currently it boasts a community of more
than 46 million members.
While there are many online social networking
sites - for example, MySpace, LinkedIn, Flickr and Twitter - Facebook
is the most popular in Canada. It experienced phenomenal growth
between April 2006 and April 2007, with members 25 and up representing
the fastest growing segment.
A recent Ipsos Reid study found that 37 per
cent of Canadian adults with Internet access have visited an online
social network and 29 per cent have a profile on at least one site.
Users spend an average of 5.4 hours a week browsing these sites.
Four years ago, online social networks didn't
exist. Today they have critical mass that is attracting the interest
of marketers hoping to facilitate online communication with prospective
customers.
It seems that anytime Facebook members sneeze,
everyone in their network is notified. With communication power
like this, it's no wonder that companies have taken note.
For example, if you visit the Chapters/Indigo
website and find a book, DVD or CD you like, one click adds the
title to your Facebook profile … and alerts your network friends
through an automatic newsfeed.
In setting up their Facebook profiles, members
share a wealth of personal data regarding date of birth, gender,
address, work history, relationship status, as well as favourite
music, TV shows, movies and books. This information is a marketer's
dream - a giant database they can use to target individuals.
Facebook founder Mark Zuckerberg recently
announced a system to make it easier for marketers to target members
and deliver ads to them based on the information they share.
Dozens of large companies such as Coca-Cola,
Microsoft and Sony Pictures Television have signed up. Blockbuster
launched Movie Clique, a Facebook application that lets members
search for movies, list ones they want to see and share ratings.
But if you think marketing on Facebook is
only for big companies, think again. Here's how some local individuals
and organizations are benefiting from this new medium.
Travel Consultant - Brigitte Gingerich
is a travel consultant with Goliger's Travel Plus in Waterloo, a
point she notes on her personal Facebook profile. Because of this
tidbit, she booked a Disney trip for the brother of a friend who
might not have otherwise have used her services given he lives in
Ottawa.
Gingerich's husband Jeff, a real estate agent,
was pleasantly surprised when a former classmate found his Facebook
profile and contacted him about buying a home when he moved back
to the area from British Columbia.
For the Gingerichs, however, Facebook is
mostly about staying in touch with friends. Getting business is
an added bonus.
Baby gifts - Kimberly Rasokas meant
business when she launched The Creative Baby, specializing in baby
clothing, accessories and shower gift baskets. So she created a
group on Facebook to promote her company and to invite friends to
a tradeshow. Those friends invited others, some of whom stopped
by her booth. Rasokas has also received orders from people who discovered
her company from the online group.
Food venture - Starting a Facebook
group was an effective way for Arlene Mahood at Kitchener Comfort
Foods to raise awareness for the not-for-profit retail store. It
allows her to post recipes and cooking tips and encourages people
to ask cooking questions. Although the group is relatively new,
Mahood says it has already attracted members who've made purchases.
Arts organization - Lost & Found
Theatre is another Kitchener-based not-for-profit organization that
has set up a Facebook group. Being able to post print ads, videos
and photos helps the theatre promote upcoming productions. Lost
& Found member, Nicole Lee Quesnel, says the group also lets
the theatre company recruit volunteers more effectively than it
could with email which often has deliverability issues.
Facebook also allows companies to reach members
through advertisements on the site. Banner-like ads can include
information about a company or a link to its website.
Health and fitness - Karen Toth of
Stretch Your Life has used Facebook ads to promote her Pilates studio
in Kitchener. The beauty for Toth is that she can direct her ads
only to members in the Kitchener network and specify the gender
and age group of members she wants to reach.
She has also used Facebook's cost-per-click
ads. These ads allow companies to more narrowly target their efforts
based on keywords in member profiles, political views, relationship
status, education and even workplace information.
While it's easy to promote your company on
Facebook, bear in mind that it was built for people looking to stay
in touch with friends. So don't just rush in. Spend time to understand
its communication etiquette.
If you don't play by its rules - written
or otherwise - don't expect success in this online community.
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