24 May

Why Advertisers Are Flocking to Facebook

WRITTEN BY Amit Singh

The Facebook advantage

The biggest advantage of Facebook (FB) over other social media platforms like Twitter (TWTR) and LinkedIn (LNKD) is its monthly active users (or MAUs) of 1.7 billion as of March 31, 2016. These users generate a plethora of information online, thereby helping businesses to target advertisements according to demographics and user interests, which leads to better conversion rates.

According to the eMarketer, a recent survey conducted by Social Fresh, Firebrand Group and Simply Measured stated that “Nearly all social media marketers worldwide believe Facebook produces the best ROI and is essential to social media marketing success.”

Why Advertisers Are Flocking to Facebook

How Facebook generates the best ROI for advertisers

Social Fresh, Firebrand Group, and Simply Measured surveyed 551 social media marketers worldwide and 95.8% of them agreed that Facebook produces the best ROI (return on investment). Many brands prefer Facebook for posting videos because its user base is both geographically and demographically diverse compared to other social media platforms such as Twitter and Google+ (GOOG).

Facebook’s products and tools enable advertisers to leverage the company’s unique combination of reach, relevance, social context, and engagement. The system is designed to help advertisers show people ads that they find interesting and relevant. Facebook continues to invest in improving its ad targeting to increase the relevance of ads.

Investors can consider ETFs to gain portfolio exposure to Facebook. The Technology Select Sector SPDR ETF (XLK) invests 6.7% of its holdings in Facebook.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.