How Valuable Is Facebook to Your Business?

Most companies are not looking for their business challenges to be explained to them; they are looking for a prescription to solve them. Today, numerous online services are all clamoring for consumer attention, all suggesting that solutions are just a click away. Moreover, consumers seem to be increasingly encouraged to use the Internet to meet personal needs: for example, buying products from online stores.

Meanwhile in the business landscape, there’s a clear shift towards the belief that online media tools can solve problems of advertising, branding and so on. The truth of this really depends on one factor: you, the business executive. Social media buzz is just as prevalent, and companies every day are turning to websites such as Facebook and Twitter in a bid to become more visible in the marketplace and to reach a more youthful demographic.

Can Facebook add value to your bottom line or company image? As with any other tool, the value of Facebook depends on how it is used. No doubt, any online platform capable of attracting as many friends or fans to a business as Facebook does has the potential to direct enormous traffic to an online product.

And statistics released by Facebook lay claim to this business-generating potential. For example, company data presents Facebook as one of the highest-trafficked websites in the world, with more than 400 million active users overall and more than 100 million active users on mobile devices. And the average user on Facebook has 130 friends.

This average user also spends more than 55 minutes a day on the social network. Fifty-five minutes a day is a lot of time. If businesses have 55 minutes every day to reach users on a social network that has a total of over 400 million active users, then clearly Facebook as a platform is not to be ignored.

To reinforce these statistics, a January 2009 Compete.com study ranked Facebook as the most used social network by worldwide monthly active users, followed by MySpace. Facebook is becoming an increasingly significant way for businesses to reach youth, as noted in an article by Michelle Sullivan on Uwire.com. She coined the phrase the “Facebook effect” to illustrate the power of the website to enable people to interact and voice their opinions.

So how can you use Facebook to add value to your business? We’ll talk about that in detail in a future post.

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  1. With nearly half a billion users and hundreds of useful tools and apps, the possibilities of using Facebook as a tool to boost your business seem endless. However, there are a number of things companies should consider before signing up. This is why it is important for companies to have a clear Social Media Marketing strategy and policy. Using media sites though, puts a company's network security and privacy at risk, and causes problems for its IT department. It is therefore important to have social media policy in place. Decision-makers and IT managers should explore issues surrounding social media in the workplace for them to be able make informed decisions about whether or not to block social media sites, and to create a sound social media policy for their companies. Here is a good place to start: http://bit.ly/d2NZRp

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