For a business to establish a social media presence it needs to market on famous websites. Facebook is the best choice to start marketing on social media. On an average more than 1.4 Billion people use Facebook every single day. Some may use it once and some multiple times.
This makes Facebook a platform where one can find a potential customer. The positive point being that the user might be connected to his friends and family all over Facebook . The user maybe looking for a company for business. Hence, Facebook is a platform that helps people meet.
This growth of Facebook's name for business marketing is in return a marketing example by the company itself.
Marketing By Facebook
Reshuffling of content
Facebook is a platform that uses online services to orient its content. A specific feature of Facebook remains that it reshuffles its content. Due to this a user gets to see a new page and gets in touch with a different content every time they use the services offered by the company. Facebook takes a lot of care of the overall experience of the user .
Facebook has a popularity far more than companies competing with it. Facebook is known and always the first option . This is due to the positive awareness towards the company. According to a brand evaluation Facebook stood with a value of $147 billion but had a 7% decline in value in the year 2020.
Reason behind the Brand Name
The market in which the company operates is a highly competitive one. This sector is not new to everyday changes. The only mantra to sustain here is to innovate or else perish. Many companies fight daily on an average to emerge as a innovator. Facebook has already achieved this status which gives it its Brand Name.
BCG Matrix is is used by companies to analyse the growth and performance if their products. Every method is an question to some answer. The question that the BCG Matrix answers is "Which product to put in the money and which to withdraw from". Basic points to understand are:
- Cash Cows – most profitable
- Stars – high competition
- Question marks – uncertainty
- Dogs – can be less profitable or may even be negative profitability
Facebook and BCG Matrix
Every product that is offered by Facebook is a star in the BCG Matrix. This is something very noticeable. All these products brought a lot of popularity since there inception. Facebook is a major Market Share itself. But it has competition from companies like LinkedIn and Twitter. Instagram faces competition from Snapchat. But Whatsapp is a clear winner due to its worldwide deep reach.
Facebook's main competitor
Instagram the photo sharing application is the biggest competition of Facebook. It is very odd to say this as Facebook bought Instagram. The deal was confirmed in 2010 for just $1 Billion. Instagram has a net worth of more than $100 Billion. So, Facebook is at a huge profit.
LinkedIn is another website that is aimed mostly at Professionals.
Microsoft purchased it in 2016 for $126 per share. LinkedIn had an annual revenue of about $6.8 billion at the end of 2019.
Twitter was started in 2006 by Jack Dorsey, Noah Glass, Blitz Stone and Evan Williams. Twitter relies mostly on advertisements for revenue. The company had an annual revenue of about $3.45 Billion at the end of 2019.
Facebook and Ad revenue
Facebook made $17.44 billion through ad revenues. This makes up the lion’s share of its revenue growth. The Company's hardware business Portal and Oculus, grew 80% year-over-year to $297 million.
Marketing on Facebook
Facebook Marketing also can be taken as individuals marketing their products on the social media platform. An user can create a Facebook page to advertise about product. Facebook provides these services to the users for free. Users can create individual profiles or business pages for companies. One can also create a page for any group attempting to develop a fan base for a product, service, or brand.
Sectors which benefits the most
- Brands. Food, electronics, home goods, restaurants—nearly any kind of item or company can be promoted through Facebook. This can turn passive customers into active fans. People then would follow news of promotions and developments. They would then share it with their own friends.
- Local businesses. A business family-owned, or a franchise both can be benefited with this. A Facebook page basically helps to turn a customer base from local to a fan base.
- Personalities. Musicians, celebrities, authors, syndicated columnists are mostly people who want to be known. They make money by interacting with more and more people.
- Non-profit organizations. NGO's such as Charities, political groups, and public service campaigns come under this. These can use all the people connecting abilities of the social media platform for their use.