Adotas may be missing the bigger picture when it comes to pronouncing Facebook ads a waste of money for small businesses.
Excerpted from "Facebook soaks up local ad biz, does it help the advertisers?" (July 17, 2009):
"74 percent of Facebook's ad revenues is from local businesses, according to Borrell. What are advertisers getting for this? Facebook’s best bet is as a portable data warehouse as advertisers ask for targeted buys, but considering the far flung nature of social networks, it seems wasted money for local businesses."
"considering the far flung nature of social networks, it seems wasted money for local businesses."
Far flung - perhaps. But local too. As more 30-60 year olds get onto Facebook - which they're doing - their local neighbors, friends, and trusted businesses will be on as well.
Local businesses get most of their business from word-of-mouth now. The local ad market, estimated at $100B, is primed to mine the communal knowledge of trusted local relationships.