Facebook Ads Help Some (But Not All) Small Businesses: Survey Says

It's no secret that businesses increasingly use Facebook to reach customers, but how many are really willing to pay for it?

Business owners say they like Facebook as a marketing venue, but less so as an advertising outlet, according to a new survey from MerchantCircle. The study found that while 70 percent of business owners used Facebook for marketing, just 23 percent had actually shelled out money for Facebook ads. That was up 5 percent from the prior survey six months earlier. However, among those who had used Facebook ads, response was largely favorable, with 62 percent saying they would do so again -- representing opportunity not only for those small businesses, but for Facebook itself.

However, of the 28 percent of small-business owners who wouldn't use Facebook ads again, most (66 percent) said they didn't attract new customers. However, a growing number of business owners (41 percent) said the ads cost too much (41 percent) and didn't get clicks (37 percent).

Why it matters to your business: Facebook has proven to be a great marketing tool for small-business owners, but I'm wondering if entrepreneurs are somewhat spoiled by the fact that it's free. Perhaps that's making them reluctant to shell out for ads on the social network. If your business is getting a lot of response from Facebook in general, it's likely it's worth your while to at least experiment with Facebook ads.

Comments

[YogiBear53]

07:49 AM on 01/28/2012

Facebook does not work well for my business, which is B2B. However, it might work okay for B2C. I don't think its going to make a lot of money though. On the other hand, Google seems to have maxed out its earnings - judging from the nature of the stunts they are pulling. Ten bucks says the paradigm for earnings from search is changing.

[Lochness71]

01:52 PM on 01/26/2012

Maybe ads do not work since most people are annoyed by them.

[UberdanSounds]

01:40 PM on 01/26/2012

I've seen statistics that keep saying social media has a positive ROI and who knows exactly how they calculate that. It might only work for certain kinds of businesses, it might only work for certain kinds of customers/clients. What I do know, is that obviously sitting on Facebook all day is total waste of time. Unless of course, you are providing Customer Service through those channels like Straight Talk, Zappos, etc. The Ads they sell are cool because you can target who you want down to the niche of niches.

For me, I'm rarely on FB, & I use Ad Block Plus+ on Firefox so I never see Ads. Sorry, slows my browser down too much, and quite frankly, they're annoying.

For Small Biz, I highly recommend getting good @ what you do 1st. Then, get an email auto responder where you send out deals @ least once a month. Have contests, trivia, happy hours etc. For pete sakes, just do some marketing!

[Amanda Houghton]

04:26 AM on 01/26/2012

My opinion is that most small business owners do not know about the ads and/or how to use them. It's strength is the ability to target an particular audience that fits with advertisers needs. Therefore they should be more cost effective.

[workwithmom]

02:45 AM on 01/26/2012

Well its truth ! Facebook ads though do not create sales at least gains traffic

[SSHARLIE101]

11:54 PM on 01/25/2012

O i have to say this, at least its helping some people out, and at least we have a computer to post some adds that are worth it, as in biznesses, so what at least we no it something good out of it thats for sure, and makes allot of CENTS of it all i dont mind POSTING some adds that are worth it ok, and i cant stand it when people complain about FACEBOOK, or TWITTER come on know, WHAT you think they have COMPUTER'S TECK for is to help other out or what is best for other's in a POSITIVE WAY or MANNER and i dont think POSTING is a bad thing at all, ADVERTIZEMENT and thats what's its for , HMM;/

[wzjussayin]

10:39 PM on 01/25/2012

If one can afford to hire a full-time or even part-time social media regurgitating monkey - go for it, but odds are, one can't. Having a free facebook page is not free, and it's a colossal waste of time and energy.
Run your business well and things will happen, one real customer at a time.
From what I have seen, facebook doesn't translate into sales, and it makes a business look like it's desperate, cheap, and has way too much time on its hands.