A realistic overview of small business marketing on Facebook

I read a report yesterday that puts small business marketing in Facebook in perspective and gives a realistic overview. Summary: use social media to enhance your web presence but have your own niche site to control your web presence.

Now, I believe in using Facebook for business and some small companies use it much more effectively than others. But the report confirms that having a web site separate from Facebook remains essential for attracting a niche market.

The article in Social Media Today entitled "Facebook, Why Nobody is Listening" by Urs E Gattiker indicates that most people go on social media won't interact with status updates from brands.

Research, based on 400 million Facebook fans, indicates that only 3.5 to 7.49 percent see your status update (Parker, Brian, June 21, 2011). Also, just 0.25 to 0.90 percent interact with the status update.

To put this in email campaign terms, only 3 to 7 percent open it. Moreover, less than one percent click-through on one of the links you provide in your email newsletter. That sounds like a nightmare for any marketer.

Therefore, 50,000 Facebook fans (or email newsletter subscribers) represent just 3,750 active Facebook likes (or newsletter subscribers). The rest is deadweight, fake user accounts or robots who certainly are not potential clients.

A niche website should be your focal point

A responder to the article left a comment citing a Pew Internet and American Life Project on “Why Americans use Social Media” provides some insight. In essence, people use social media sites to connect with friends and family. Everything else (including your website) just gets in the way.

Summary of the report:
“Two-thirds of online adults (66%) use social media platforms such as Facebook, Twitter, MySpace or LinkedIn. These internet users say that connections with family members and friends (both new and old) are a primary consideration in their adoption of social media tools.

Small businesses--and I would emphasize independent consultants and solo entrepreneurs--won't fare as well.

That doesn't mean a Facebook for business isn't valuable, it is. But it also means don't count on Facebook alone or one of the other social media sites to drive traffic.

Getting into search engines requires having a stand alone website that is optimized for your niche and your area of expertise.


Click here to read the report on Social Media Today.