Advertising strategies on Facebook in the UK market

¶ … Advertising on Facebook in the UK Market

Facebook is highly popular in the UK market today, just as it is in many other areas of the world. That has not always been the case, because Facebook has not been a social media tool for that long. In addition, when it first came out it was only for colleges in the United States. Because of its extreme popularity with college kids, the service expanded to include anyone who wanted to join so that they could connect with friends and family all around the world. MySpace was the popular social media platform (and virtually the only one available) when Facebook first came out, but MySpace quickly faded into the background because Facebook was liked better by the majority of people who used it. Many of them switched away from MySpace and started using Facebook exclusively. Others used both or simply left their profile up on MySpace and checked it periodically.

Originally, there were not as many things on Facebook as there are currently. There were fewer people, but there were also fewer businesses and advertisements. Pages were not part of the mix in the early days, and people did not advertise their products or services. Now, it seems as if just about the entire world is on Facebook in some capacity, and that extends to businesses as well as individual people. There are Facebook pages for people's children and animals, for legitimate businesses, for books, for causes, and for other items. Despite Facebook's TOS that states people have to use their real names and they cannot create pages unless they are legitimately affiliated with the industry, organization, or item the page is about, there are many pages on Facebook that are questionable in some way. Another thing that Facebook has been experimenting with is advertising. How people feel about having ads on their Facebook page is something to explore.

Advertising on Facebook is often market-specific in that there are many different places in the world where Facebook is used. If the company does not market to those people in a way that they can accept, with products and services that they want, there would be little point to advertising, at all. This is particularly significant in the UK market, because Facebook has a large presence in the UK and many people there use it to keep in touch with others and to read about their favorite businesses and services. With that in mind, it is important to consider what would b the best way for Facebook to market to the UK and how that marketing should be undertaken so that it will be handled in a way with which the UK audience feels comfortable and to which that audience responds. The UK market is different from the U.S. market or other markets throughout the world, and cultural differences matter greatly where advertising is concerned. It is not just about advertising on Facebook per se, but about how to advertise to the market correctly - and both of these issues should be considered.

Literature Review

There are two specific areas that have to be addressed for this literature review - Facebook and advertising. Both of these need to be examined from a UK perspective in the study, but that is not a requirement for the literature review. There have not been significant studies about this issue, but there are many studies about the value of Facebook and there are virtually countless studies regarding how companies market and advertise their products. Those are the areas on which this literature review will touch, beginning with the value that Facebook appears to have for a large number of consumers in the UK, U.S., and many other countries across the globe. Facebook is not without its troubles and aggravations, but there is much to be enjoyed about the service, as well.

College students were the first to use Facebook, but now it seems as though just about everyone uses the service. There is an age requirement, but many parents skirt around that and get accounts for their children (Klaassen, 2009). They also get accounts under false names, or they get accounts for their pets - both of which are against the TOS of Facebook but are not often removed unless they are causing a problem or they are reported multiple times. Recently, an addition to Facebook has been the ability to purchase credits that can be used to run ads on the site (Womack, 2011; Klaassen, 2009). This has been met with limited success and varied opinions, but it remains an integral part of the site at this time. Facebook sees the value of selling advertising space on the site, because it is such a large platform and people who buy ad space there can get noticed, which means revenue for Facebook (Klaassen, 2009). In addition, companies see the value of buying ads on Facebook because they see that they can make money by getting their name in front of customers and getting those people to click to see what they have to offer.

Advertising on Facebook is similar to advertising on other media, and the same kinds of marketing and advertising principles should apply (Womack, 2011; Klaassen, 2009). That is important to remember when a business is contemplating purchasing ad space on Facebook. For any company that is considering this, the most important things to consider are the same things that are considered with any other marketing or advertising campaign: the target market for the product or service, and the proper message to convey the right information to that target market. Both are vital. There is little point to reaching out to people who will not be interested in the product or service the company has to offer, but there is also little point in reaching out to people if the message given to them is not one to which they would be receptive (Womack, 2011; Klaassen, 2009). That can be worse, because changing the message later may not be effective, and it is possible that those potential customers will be lost forever.

The first thing that companies must do when they decide they are going to focus on advertising on Facebook is ensure that they are reaching the proper target market. They may assume that Facebook users are their target market, but which Facebook users? They are not all the same, and there are many different demographic groups that use the site for a wide variety of reasons (Womack, 2011). When Facebook is seen as a cross-section of society it makes more sense to marketers because they realize that they still have to focus on a particular market instead of focusing only on "Facebook users" (Womack, 2011; Klaassen, 2009), That large of a group should never be seen as a target market, because they are so very different from one another in so many ways. Facebook has basic demographic information about its users, and companies that are going to market their products on Facebook will want to take advantage of any information that Facebook will give them, so that they can better tailor their ads to the right group of people (Womack, 2011; Klaassen, 2009).

Once they have selected a target market that they are going to market to on Facebook, the next main issue for any business is to focus on the message that they wish to present to that target market (Cavusgil, Zou, & Naidu, 1993; Delagneau, 2004; Ewen, 1976). People who are new to marketing do not always understand the value of that, but there are many studies and books that have been written about the need for people who are marketing a product or service to get the proper message out to their potential customers (Hofstede, Steenkamp, & Wedel, 1999). The wrong message not only stops people from buying the product or service that that time, but it may also turn people off completely to the point that they are no longer interested in buying from that company at all. That is especially true if the message is offensive culturally or in some other way.

No matter what country a company is focusing on for marketing, that company must consider culture and other significant factors in its marketing and advertising strategy (Hofstede, Steenkamp, & Wedel, 1999). Culture is vital to decisions that relate to any kind of marketing, so a company that does not consider culture has to stop and take into account the fact that it may be missing something important, to which its potential customers would respond. Overall, there are no easy ways to ensure that culture is completely understood, and a culture needs to be carefully studied. Reading about a particular culture and exposing oneself to that culture are both important ways in which a company can gain a better understanding about what matters to the culture and what is considered valuable (Kanso, 1992; King, 1990).

Facebook sells ads that are pay per click, meaning that a company does not pay for having the ad on the site until someone clicks the advertisement. That is a great way for a company to market, because it is able to place many ads on the site and not pay any money until the ads are clicked - meaning that someone who clicked the ad clearly had an interest in the product or service that was offered by the advertisement itself. There is no charge to the person who has clicked on the ad, and there is only a minimal charge to the company. Some pay per click ads cost more than others, of course, and companies can offer more per click as an incentive to place the ad more prominently or have it run more often. There are many ways to use pay per click ads to the advantage of the company that markets with them, provided the marketing department understands how to use those ads correctly, so that they get the most value for their money.

The keywords that are used for the marketing campaign on Facebook are important, because they need to match what the customer or potential customer is looking for and they need to show up on the pages of people who would be interested in the products or services that are being offered. By ensuring that the right words are being used, the company is better prepared to see its ads placed where they belong and in ways in which customers will respond to adequately to make the marketing campaign worth the cost of it (Featherstone, 1990; Gupta & Ferguson, 1992; Hite & Fraser, 1988; Jain, 1989; Moriarty & Duncan, 1990). Even though a company only pays for the ads when a customer clicks on them, there is still a cost involved. The clicks need to be "worth it" for the company in that the people who click on the ads are likely to purchase the product or service offered.

Marketing in and of itself is a complex venture, and internet marketing is even more complex because it has the opportunity to reach vast numbers of people who otherwise would not know about the product or service. Since that is the case, companies that market on Facebook must take the initiative to make what they sell and advertise as relevant to as many people as possible. For example, if the target market is women between the ages of 35-40, there are still many cultural differences among these women in a global society. Women in the UK will be different from women in the U.S. And women in Asia. By marketing to a specific gender and age group, the company can reach a large number of people but must remember to take culture and society into account so as to avoid offending a large sector of the target market through some unforeseen faux pas (Bartos, 1989; Farhi, 1992; Goss, 1995; Levitt, 1983; Mandese, 1988; Mattelart, 1991; Noyelle & Dutka, 1988).

It is also vital that companies understand the social nature of Facebook. When someone sees an ad they like, they may tell their friends about the ad, the company, the product, or the service. Marketing through social media sites like Facebook means that companies should take the social aspect into account and use ads that appeal to people in such a way that they can pass on the information to other people in their social circle (Womack, 2011; Klaassen, 2009). That is also another good way to get more information out to a market that might be interested in purchasing the product or service the company has made available. When something has been recommended by a friend or family member through Facebook, the person who receives that information will be more likely to purchase it because it comes recommended. Companies can leverage the power of social networking to accomplish that with their ads if they know how they can do that correctly and get results (Womack, 2011).

With social media sites like Facebook, interaction is key (Womack, 2011; Klaassen, 2009). Ads that are interactive can be good money-makers, but they may not be of the pay per click variety and, therefore, may cost more. Pay per click is not the only kind of ad that can be used on Facebook, and there are other choices. If a company does not want to use pay per click, the company may choose to buy ad space that they pay for up front. They can still make a lot of money that way, of course, because customers and potential customers can click on the ad and buy the product or service that is offered from the company. The only real difference is that the company has already paid for the ad, so the money has been spent whether customers click on the ad or not. That can be a bit of a negative for some companies, but those that have more money to spend find that they can do very well with well-worded, attractive ads that they pay for in advance and that will display on the site a specified number of times (Womack, 2011; Klaassen, 2009).

What users of Facebook typically do with their page and what they "like" on the site, as well as who they are connected to and friends with, can also affect what ads they see. If a company wants its ads to show up for a certain subset of customers, that company should consider aligning itself demographically with pages and people who appeal to the target market that company wishes to reach (Klaassen, 2009). That can be one of the very best ways for a company to reach the people it really wants to reach, since there are only a few good ways of getting noticed on social networking sites, since there is so much competition with which a particular company must deal in order to be successful.

By understanding how companies work when it comes to marketing and advertising, and understanding how Facebook works for marketing to customers and potential customers, anyone who uses the site (consumer or marketer) can have better results and a more enjoyable experience (Womack, 2011; Klaassen, 2009). That is one of the best aspects of social media, is that users can adjust their experience to a certain extent, so that they mostly get what they want and need, without all of the things that they would like to avoid and the kinds of interactions that do not interest them in any way.

Research Question and Research Objectives

For this particular study, the research question is as follows:

What is the most effective way for Facebook to add advertising that would be acceptable to the UK market?

This is a simple question, but it has far-reaching implications for the advertising market in the UK and for Facebook in particular. Marketing Facebook as a service in the UK is relatively easy, but advertising other products and services on Facebook in the UK must be done properly or people will not respond to it. Facebook will also be putting its reputation on the line to some extent, because it is risking offending or upsetting many of its UK users by adding advertising to their Facebook experience. If this is not done correctly, many users could leave the service in favor of something else that would suit their needs without requiring them to be subjected to advertising.

To that end, this study will attempt to meet the following research objectives:

Determine whether Facebook should advertise on their pages in the UK market.

Determine what kind of advertisements Facebook should put on their pages in the UK market.

Determine the best course of action for Facebook to take regarding ad space and placement on its pages in the UK market.

Methodology

The methodology of any study is highly important. Without a good methodology, a study can falter and even become confusing to anyone who reads it in the future. Studies should also be able to be replicated, and when the methodology is clear and the study makes sense, it is much easier for future researchers to replicate the study and see if what they learn from it matches what the past study conveyed to them. For this study, the research design, data collection, and timescale are all significant and will all be addressed.

Research Design

In general, research is either qualitative or quantitative. Quantitative studies deal with facts, figures, and statistics, and qualitative studies deal more with feelings, emotions, and opinions. There are also mixed-method studies where both of these procedures are used, and that is the type of study that will be conducted here. It is important to understand what kind of marketing is being seen on Facebook in the UK today, but it is also important to know how Facebook users feel about the advertising that is presented to them. Because these are both significant issues, the researcher will need to study both sides of the spectrum in order to make a determination from which conclusions can be drawn when the study is completed at a later date and the data is analyzed and presented.

For the qualitative portion of the study, the researcher will survey 100 people who live in the UK and who use Facebook. Those individuals will be asked about the advertisements that they see on their Facebook pages. The researcher wants to know what people think about those ads, and how the ads make them feel. Whether the participants want to buy the products or services that are offered is significant, along with whether they click on the ads and how often they actually do purchase something that has been advertised to them on Facebook. Other factors about the ads also matter from a marketing standpoint, however, such as the size, color, and placement of the advertisement. These factors are just as important as the information that the ad conveys or the product or service that is being sold through the advertisement. Surveying 100 people will provide a great deal of insight into the way that UK Facebook users perceive their experience when it comes to ads.