Estimated reading time: 2 minutes, 35 seconds

“Is Facebook advertising worth my investment?” This is always the question marketers ask. Ever since it was founded over a decade ago, Facebook has grown from a mere website for Ivy League undergraduates into a global social media giant which affects the day-to-day events of billions of people and businesses across the globe. One of the key reasons for this unprecedented growth is advertising.

From research, it is estimated that approximately $27 billion in advertising revenues was created in 2016 by Facebook which is up from approximately $765 million in 2009. This is an increase of over 3000% in just a span of less than a decade. This growth in revenue is linked with the increase in the number of businesses which use Facebook as a platform for advertising their products and services whereby they spent money on it.

Popularity aside, is Facebook advertising effective? In a corporate setup where every coin counts, this question is critical. Every business will always invest where returns are expected. However, the best way to know if Facebook advertising generates returns for your business is by trying it out and calculating the return on investment based on the results you obtain. If you are still in the dark and need information about Facebook advertising, here is information that can help you make an informed decision.

For you to decide on whether Facebook marketing gives you a return on investment, the first thing you should do is to look for hard numbers. The most important things you must address are:

The population of Facebook users: 22% of the global population is made up by active Facebook users. Of this populace, more than ¾ are adults.  Out of over 2.27 billion monthly active users as per Statista, 76% look for captivating content for consumption. Accordingly, content consumption has increased by more than 55% since 2014. More than 60% of social media users are interested in learning about new products and services. According to 2015 research by TheDrum, 52% of consumers were influenced when making online and offline purchases by Facebook. Furthermore, fans who like a business page on Facebook are 79% likely to purchase a product or service than the non-fans. Lastly, while building awareness, the average costs per impression are 5 times higher in TV commercials than Facebook ads. For instance, the approximate cost of a Facebook ad is at around $7 while the television commercial is $35.

Now back to whether Facebook advertising is worth it, it is without a doubt that Facebook can offer a user positive ROI. However, there is still work to be done in planning and executing a flawless advertising campaign. Although you might be a pro Facebook user, building and executing a successful advertising campaign on this platform can be a different thing altogether.  Unfortunately, a majority of businesses find themselves on the wrong side by underestimating Facebook and ends up overspending to get results to no avail. Just because Facebook ads are available does not mean that they are easy to use.

Summing it up then, Facebook advertising is worth any serious marketer’s money and time. However, there must be a proper strategy in place to ensure you get everything right.

Last modified on Monday, 18 March 2019
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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

Find his portfolio here and his personal bio here

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