More than 2 billion people are on Facebook, and advertisers collectively spent more than $26 billion on Facebook ads in 2016 to reach that ever-growing audience. And seeing the stats, one can easily assume that the chances of you reaching your target audience through Facebook are pretty high, right? But then you hear from people who say they've spent thousands of dollars on Facebook ads without generating any real results.
So is it worth advertising on Facebook? Are all these numbers pointing to actual opportunity for your business?
People are more likely to buy from brands they follow on social media. A study conducted by Sprout Social reveals that 75.3% of people purchase something because they saw it on some social media channel, proving that a good social presence can lead to brand loyalty.
This shouldn’t be surprising as 2.34 billion people worldwide are on social media and use these platforms to be informed about the world and the brands they like most. They also use it to connect with friends and spread the word about things they enjoy. According to CrowdTwist, 43.5% of millennials use social media to share content about products and services they like.
Instagram is slowly expanding on its advertising potential, with the addition of new direct response ads within the Stories stream.
As first reported by Ad Age, the new direct response ads are similar to the ‘See more’, swipe up prompt which Instagram provided to verified users for their Stories content back in November.
Pandora has been the best-known name in Internet radio since 2000, when founder Tim Westergren launched the Music Genome Project. But the (now public) company has recently struggled to sell enough ads to both offset music licensing costs and turn the kind of profits investors crave. However, the company’s foray into in-car listening, and enhanced efforts to win ad dollars that would normally be spent on terrestrial radio, might turn the tide in Pandora’s favor.
I wrote a note to Pandora founder Tim Westergren in August, asking if he had time to talk things over. He did. Over breakfast at Tim’s favorite spot — Sweet Maple in San Francisco’s Pacific Heights — we talked about a wide variety of topics, including the role of brands in music, fair compensation for musicians, Pandora in the car, millennials, and South by Southwest.