Facebook’s New Ad Tools Target SMBs

Fri Oct 10, 2014

Kathy Crosett

There’s no denying that consumers are using Facebook to vet local businesses. Facebook isn’t the only social game in town, though, as the Gannett facebook-logoG/O Digital study showed this summer. But, Facebook is well aware of its growing power in the local market and the company is rolling out new tools targeting small businesses.

In the G/O Digital Study, summarized by Greg Sterling for Screenwerk, consumers who use social media say the following sites are most useful when they are checking out small or local businesses:

  • Facebook 62%
  • Pinterest 12%
  • Twitter 11%
  • Instagram 9%
  • Other 6%

Consumers are apt to follow some local business types more than others on social media. Restaurants are at the top of the list with a score of 38%. Educational and training firms score at 14%, as do beauty and spa businesses. Out of all the local businesses followed by consumers, 9% are financial services institutions.

On average, about 59% of consumers visit Facebook pages of local SMBs at least once a week and 58% engage with Facebook ads from these businesses once a week. To maximize engagement with these consumers, SMBs should consider offering discounts – these kinds of promotions encourage 40% of surveyed Facebook users to make a purchase at a local store.

Given this enthusiasm, it’s no surprise that Facebook continues to roll out services to help small businesses advertise on its site. The latest is “Local Awareness Ads.” This new tool could be particularly useful to SMBs as it is all about mobile geofencing.

By some estimates, at least 30 million SMBs have Facebook sites. It’s a pretty safe bet that most of these businesses don’t know how to effectively use the ad tools provided by Facebook. Sterling remarks that the social giant should “simplify the ad-creation process.”

Even if Facebook makes the change, it’s likely many SMBs will still have trouble setting up their social advertising. If you are selling digital ad services, promote your company’s ability to help your clients optimize their promotional campaigns using the “Local Awareness Ad Format.”

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

View all posts by Kathy Crosett