Traditionally advertising has always been a push strategy, which is a fairly simple concept; a push strategy is as the name suggests; it is pushing your product directly to the customer via various mediums which traditionally were T.V., Radio, and print, trade shows, etc. With the advent of the Internet the push strategy was still in play by using email marketing, banner advertisements, etc., these still used the same concept. Even SEO originally used a push strategy using various technologies to push products to end users, but then things started to change and SEO gravitated to a pull strategy. A pull strategy is the opposite of a push strategy in the sense instead of pushing a product out to a customer; the goal is to pull the customer in by motivating them to actively seek out your brand or product. The Internet has given consumers access to a plethora of information, creating well informed consumers who come armed with information and know exactly what they want and that has changed how we market.
Then came social media which not only changed how we market but completely changed the concept of marketing and advertising completely. Unlike traditional advertising, including traditional Internet marketing, social media created relationship marketing which instead of looking at just the short term sale that many traditional advertising looked at it considers the long term and its purpose is to create customer loyalty through interaction and relationships. Social Media is completely redefining how we do business, we no longer just sell our products, we have to market ourselves as a company and even the individuals within the company. Social media has had the most dramatic increases in advertising that we have ever seen and of course Facebook is at the forefront of this dynamic new concept of marketing.
In just two short years the increases in Facebook advertising is nothing short of spectacular; in 2009 U.S. businesses spent just over $500 million dollars advertising on Facebook and that number more than doubled the following year to $1.2 billion and this year is forecasted to hit $2.1 billion and $2.8 billion in 2012. If these numbers hold true the increase between 2009 and 2012 will be over 400% in the U.S. and almost 700% worldwide.
In 2009 the total online advertising revenue in the U.S. was over $22 billion, of which Facebook had 2.4% of that total and in 2010 they had 4.7% and it is estimated that it will be 7.7% this year and 8.8% by 2012. This is incredible for just one company to have such a large portion of online advertising.
Facebook has over 500 million users, it is estimated that Google has 300 million users and Facebook is less expensive than Google with the PPC rate below $1. I am not a Google basher, actually I am quite fond of Google, but Search Engine Marketing is being left in the dust compared to Social Media.
It is obvious that Social Media is here to stay and that it is and has changed how businesses market themselves, and that Facebook is king of the heap, however I would like to caution people to not put all their eggs in one basket and not to depend on any one company for advertising regardless of how successful they are. Remember MySpace?