Where does facebook find its power as online marketer

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Reference no: EM132154059

Facebook has the potential to become one of the world's most powerful and profitable online marketers. Over time, Facebook has changed its philosophy on advertising. Today, companies can place display or video ads on users' home, profile, or photo pages. The ads are carefully targeted based on user profile data. But advertising is only the tip of the marketing iceberg for Facebook. Other money-making ventures are growing even faster than advertising. Will all of this increased marketing on Facebook alienate loyal Facebook fans? Not if it's done right. Research shows that online users readily accept—even welcome—well-targeted online advertising and marketing. It's too soon to say whether Facebook will eventually challenge the likes of Google in online advertising or whether its ability to sell entertainment to users will ever expand into selling other types of products on a large scale. But its immense, closely knit social network gives Facebook staggering potential. The online giant must be careful to not drive off its legions of loyal users with too much advertising or marketing that is too overt. Also expand upon the new avenues that Facebook is using and its marketing implications.

1. Where does Facebook find its power as an online marketer?

2. Discuss the effectiveness of Facebook to generate revenues through its advertising? (Companies can place display or video ads on users' home, profile, or photo pages. The ads are carefully targeted based on user profile data. But taking advantage of the core characteristics of its site, Facebook offers "engagement ads" designed to blend in with regular user activities. Users can interact with the ads by leaving comments, making recommendations, clicking the "like" button, or following a link to a brand-sponsored page within Facebook.)

3. Many analysts view Facebook as a major model for direct marketing in the digital age. What do you think and why?

4. What recommendations would you make to the company? What is working and should continue? What is not working and should be modified?

Reference no: EM132154059

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