Despite its decreasing reach and rising ad rates, Facebook is still the most effective advertising channel for small businesses.
A new study by digital marketing firm G/O Digital found social media to be extremely influential when it comes to discovering and buying from small businesses. The study surveyed 1000 online and mobile users between the ages of 18 and 29, asking them which social media channel they used to discover or research local businesses. 62% said Facebook, followed by Pinterest (12%), Twitter (11%) and Instagram (9%.)
Facebook might be getting more expensive for these small businesses, but at the same time, it’s doing a lot more for them than it is for big name brands and retailers. This past summer, Facebook toured the country setting up workshops for small businesses, educating them on how to deploy targeted ads within their localities.
It has also been experimenting with a “Buy” button for its ads. This would allow the small businesses advertising on it to also sell directly through the Facebook, eliminating the need and (cost) for their own e-commerce website.
Some of the other key findings by G/O digital include:
– 58 percent of respondents engaged with some form of Facebook advertising at least once a week before entering into a store
– 80 percent say that they’re willing to make a purchase if that SMB has a positive customer review/rating on the company’s website or Facebook page
– 38 percent are influenced by Facebook offers that can also be redeemed in-store
– 84 percent believe that by receiving local deals and offers via Facebook, it will make them more inclined to make a purchase in-store
– 27 percent are willing to give up a bit of their privacy as long as the Facebook ads are relevant to them and their current location
For the rest of the report, check out this SlideShare presentation from G/O Digital: