Facebook can be a marketing tool for small businesses
Written by Shirley Lichti, for The Record, November 21, 2007
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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.
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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