Los Angeles — Advertising has long been the lifeline of online search and social media outfits, and as businesses anxiously await the launch of business profiles on Google+, Facebook in an attempt to gain more small-business users, the social networking titan is expected on Monday to reveal plans to launch a new program that includes giving away $10 million of advertising credits to small businesses: Facebook Marketing Solutions, a new report claims.
Barely a week back, we covered that Facebook plans to offer free $50 advertising credits for up to 200,000 small businesses, based on an ad is clicked, the advertiser pays a set rate predetermined for that clickthrough. Now, the latest initiative is being launched in collaboration with the US Chamber of Commerce and the small-business group National Federation of Independent Business (NFIB), a small-business group.
The latest initiative is aimed to inform small businesses on the value of Facebook advertising, and educate them on how to promote themselves on the social media networking site, like buying display ads targeted to specific markets, but also through cost-free measures to engage more with customers, the Wall Street Journal is reporting. According to the Journal, Facebook plans to announce the agreement today.
“As small businesses are seeking ways to remain competitive, the Chamber will continue to provide innovative solutions for succeeding in an ever-evolving economy,” said Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce.
Said NFIB CEO Dan Danner, “Our study indicates that poor sales have been the top small-business problem for some time now, so help in attracting customers will be most welcome.”
Currently, more than 15 million Facebook users in Illinois have “liked” a business, a way customers express positive views on companies and help drive traffic to businesses, said a Facebook spokesman.
The new program will officially kick off next month with a cross-country road show in collaboration with state and local chambers of commerce and regional NFIB offices. At locations still to be determined, Facebook officials and members of the two business groups will meet with local businesses to discuss best practices for marketing to customers through Facebook. Specifically, the partners will coordinate together on a number of initiatives to help businesses, including:
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Resources: The education effort will combine the knowledge and resources of Facebook, NFIB, and the US Chamber to provide American local businesses with webinars, collateral, case studies, and tips. These materials will educate business owners on how to improve their connection to customers and reach new customers through the use of free Facebook tools like Pages and Platform, as well as other marketing options including Ads and Sponsored Stories.
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Roadshows: As a part of this education effort, the program will include a cross-country roadshow coordinated with state and local chambers of commerce and regional NFIB offices. At these events, experts will meet directly with local businesses to discuss how to get the best results in connecting with customers on Facebook.
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Facebook Small Business Boost: Starting in January 2012 and following the education effort, Facebook will begin awarding businesses up to $10 million worth of free Facebook advertisements. The goal of these ad credits is to give 200,000 businesses across the country a $50 boost.
“Small businesses are the backbone of the American economy and we believe that Facebook can be a tremendous tool to fuel their growth and success,” Facebook COO Sheryl Sandberg said in a statement. “Our goal is to give small businesses a boost by helping them find customers the best way possible–through recommendations from friends. We are proud to be coordinating with the NFIB and US Chamber in this effort.”
Advertising is extremely significant for Facebook. Earlier this month, research firm eMarketer unfurled that the social media network will generate $4.27 billion this year, including $3.8 billion in advertising worldwide. That figure is up a whopping 104 percent compared to its 2010 ad revenue of $1.86 billion.
Nevertheless, David Fischer, vice president of advertising and global operations for Facebook, explains that the company’s main goal with the program goes beyond a desire to expand its already flourishing customer base to include more small businesses than the estimated 9.2 million that currently have Facebook pages. He said Facebook wants to help small businesses grow by using the social-networking site as a marketing platform that can assist these companies in securing more customers and increasing sales.
“We see an opportunity for Facebook to offer small businesses a boost,” Fischer says.
Furthermore, Facebook rival Google+ is reported to be setting up “profile pages” for businesses so they can market themselves on the social-media platform, according to technology media news sites. Google also is reported to be pursuading advertisers to set up websites that can be easily accessed on mobile devices.