It took Facebook a mere two years to reach an audience of 50 million people. Now with a user base that exceeds over half a billion people it is unlikely to meet someone you cannot find on Facebook. This is what makes Facebook such a prime target for advertising.
Among the half a billion people that use Facebook, 200 million people now use Facebook on their mobile phones also, whether it be on a Blackberry, iphone or Andriod. This is what makes Facebook’s new application ‘Places’ so effective. Facebook is basically the same as Foursquare, which I blogged about a couple of weeks ago. Like Foursquare, Facebook Places is a geolocation service that allows people to check in to different stores and restaurants who use this application and get special deals and coupons.
It is free for a business to use Facebook Places just like Foursquare. But the advantage that Facebook has over foursquare is that Facebook is starting with a huge audience. They can use that as a draw for businesses to advertise on Facebook that they are offering deals through Facebook places. When Facebook offers a new application, millions of people are quickly informed through the social network about it. Foursquare, on the other hand, needs to start from square one and build its audience. Facebook’s ubiquitousness is going to make it very hard for new geolocation services to compete with it.
Gap is one of the first big companies to work with Facebook places. “The company outlined a campaign offering a free pair of jeans to the first 10,000 users who check into their local Gap store using Facebook’s mobile application” (Worthman). This is one example of the way companies can reach out to existing and new customers. Another model is one that might be used by a company like Starbucks, who has expressed interest in this. Not only can Starbucks offer a free latte but they can leverage the social network aspect of Facebook as well. That is because on Facebook places when you check in to one of the participating companies your location updates on Facebook place, your friends news feed and your wall. This will allow your Facebook friends to be informed where you are and what places are offering deals, reaching an even greater market. Starbucks is hoping that this product will take the virtual social network to the next level and make it an actual social network where people are sitting at a table, talking face to face, drinking a latte in Starbucks.
The incorporation of cell phones and social networks and their ability to bring people together brings a unique opportunity for marketers and also for the people themselves, who may just get a free pair of jeans or find their new favorite hang out. On the other hand, the convergence of cell phones, social networking and targeted advertising, also has a dark side. While it may make you feel like the world is actually designed just for you, it is only able to do this by knowing where you are, what you like, and who you want to be with. In this world, the idea of privacy is an illusion and everything that is known about you is used to create your day-to-day experience. We may soon find ourselves living in a world where we will have to be suspicious of every seemly random event and whether in fact it is really random.
Facebook definitely has an advantage over other companies in the advertising category. Facebook gives companies a head start in their advertising because of the extremely large amount of users that it upholds. Many companies use websites to advertise their products, but the way Facebook displays advertisements, helps to boost the views of the companies' products. When you are on Facebook, the right side of your screen makes up quite a bit of advertisements. The interesting thing about the advertisements is that they are directed to the user. For example, on my Facebook, many car parts, dealerships, and links to other car related websites pop up because I am so frequently on those types of websites. The use of the IP addresses gives Facebook the information to which company advertisements they should display on your page. I feel that the information they get from my computer to put related ads up seems a little sketchy, but it is cool to see that they know what I am interested in. The Facebook Places seems like an awesome idea for Facebook to take up. Being able to see where you would like to shop or dine at is a great way in finding a place that you may not have known about or normally would think to go to. Similar to this, is the website opentable.com, which my family uses. This website allows you to look up various types of restaurants and book a reservation. Although the company must chose to be put onto opentable.com, it is a great way for them to advertise their restaurant as there is a overall rating, an abbreviated menu, and a price rating. I think that the Facebook Places is a good idea for travelers as a way to discover tourist attractions and once again, restaurants. Companies that are giving out special deals through the use of Facebook Places, are definitely going to be receiving more hits and visitations from customers who are looking to obtain those deals and give further business. I would say that the Facebook Places will only continue to increase as a way for company advertising and customer base growth.
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