My Inquiry Project – Facebook Helping Businesses Grow

My Inquiry Project discusses the benefits that the cell phone industry experiences by using Facebook as their main source of advertising. I discuss several methods that Facebook uses to make their advertisement experience the best on the market. This included their large user audience, their advanced targeting algorithms and a proven increase in revenue for their sponsored companies. To find my whole piece heres the link.

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Synthesis Matrix

What makes Facebook advertisement such a successful tool?

Advertisements on Facebook are a incredibly helpful tool for businesses because:

Names of Authors Facebook’s high amount of users and ability to maintain them and provide them with advertisements daily. Businesses experience a rise in the amount of attention received after advertising with Facebook. Users will be able to see ads based off their Facebook “likes” making them more likely to see ads they enjoy
Paul Tassi

 

 

 

 Facebook has been adapting to new social media interests such as Twitter and Pinterest by incorporating their ideals to maintain its popularity and large amount of daily users.

 

Advertisements are seen around 40-50% of them time.

 Facebook advertises for over one million companies and businesses. It is claimed that being on Facebook has increased businesses popularity and activity from users by utilizing Facebook as their advertisement outlet.  When users “like” certain interests they have on the social media sight it guaranteed that you would see advertisements from those areas of interest almost 60-100% of the time. Advertisements are even supplies based off you demographics selected on Facebook. For example, the author says that he is given advertisements from “Jacks Threads” even though he has not “liked the company”. He claims that due for him being a 18-30 year old male he is automatically supplied the ad.
Peter Sayer

 

 

 

     Facebook is starting to gather more information from users app purchases, their browsing history and other websites they visit in order to formulate more advertisements custom fit to their users. Because of this increase in amount of information gathered from users Facebook is allowing for more ad control for their users, they will be able to choose whether or not to see ads anymore as well as choosing to see more.
Larry Kim

 

 

 

 Since Facebook receives over one trillion page views a month the sheer amount of possible customers is outrageously large. That being said only a little more than half of these users will see advertisements put on Facebook.    Facebook utilizes a topic and interest-targeting algorithm, which targets users from their interests on Facebook as well as their browser history.
Kevin Curran, Sarah Graham, Christopher Temple

 

 

 

 Facebook boasts that it is available in 40 different languages, which greatly increases the amount of diversity amongst its users as well as increasing the pool of potential viewers for advertisements.

 

It allows for businesses to exactly choose whom they want their advertisements to be received by as to avoid the unneeded spending of advertisements that will get dismissed by people you are statistically uninterested.

 

Facebook’s audience also keeps growing as the years go by. As of 2009 older age groups between 35-54 had been almost twice as active on Facebook as in previous years.

 Facebook allows business to have access to millions of viewers daily. By using Facebook’s affordable advertising formats and process businesses gain huge amounts of followers and fans by being active through their media personas and interacting with their fans by supplying offers and informing them of sales or new products.  Audiences can be targeting bases of location, age, relationship status, interests, and the language they speak. This makes the advertisements very selective meaning users will absolutely receive ads they are interested in.
Katherine Roberts

 

 

 

 Based on a study done on college students from different geographical locations across the nation there are some key stats that were revealed that support Facebook’s ability to supply their heavy amount of users with advertisements. 100% of the users that were tested say that they have clicked on applications of advertisements that were supplied for them on Facebook even though only %30 were actually aware that they were advertisements.   Facebook’s ads have increased the amount of views for website it sponsors by %200 and from an online survey %43 percent of online purchasers claim that it is because of Facebook that they found and purchased their particular items. Facebook is privy to all of their users private information since when they sign up for the sight they usually accepts the “terms and conditions” section without reading that part that signs over all of their online information through Facebook to the company to allow them to create personalized ads for users that they know statistically they will enjoy.
Joshua Brustein

 

 

 

 After interviewing 395 different companies about what advertisement outlet was most effective and Facebook was put at the bottom of the list. According to this article Facebook is not using all of their resources to its full potential. For a company who’s targeted audience is on of the largest in the world they aren’t doing as well as they should. Advertisers who use Facebook are seeing 58% higher returns on their investments. Basically they are earning more than half of the money that they invested into advertising through Facebook. AS a result however, Facebook is able to charge more and more per views that they give to businesses ads. They charge on a cost-per thousand basis, a rate that charges companies per 1,000 views they receive on Facebook.  Facebook has began to increase the amount of ads they supply to their users by 85%. However it is said that it doesn’t feel that way because the way Facebook targets their ads toward their users is so effective that users will still only be seeing advertisements they enjoy.
Reed Albergotti

 

 

 

     Facebook has a long history of targeting users with advertisements based off their “likes”. This way, the ad experience is not as painful for users. Recently however Facebook is allowing companies who advertise with them to advertise on the companies own website. They are also tapping into users browsing histories to create a much more efficient targeting formula.
Perry Marshall and Thomas Meloche

 

 

 

 The amount of members on Facebook has grown exponentially in the past few years. As the internet is going more and more mobile, the numbers continue to rise to the point were Facebook could potentially become to largest advertising site in the world. The site boasts that over half of its users log in daily. The average user is connected to 80 community pages and collectively all users create more than 300 billion pieces of new content each month. With Facebook being translated into 70 different languages now as well. A majority of Facebooker’s live outside the United States.  There are certain scenarios that determine whether or not your business will actually thrive when using Facebook’s advertising features. For the most part yes, companies experience a large amount of increase in sales and customers.  

 

Marshall, Perry, and Thomas Meloche. “Ultimate Guide to Facebook Advertising: How to Access 600 Million Customers in 10 Minutes.”Google Books. Ryan Shea, n.d. Web. 15 July 2014.

Kim, Larry. “Google Display Network vs. Facebook Advertising.” Web log post. WordStream. The WordStream Blog, 15 May 2012. Web. 15 July 2014.

Sayer, Peter. “Facebook Will Gather More User Information, but Offer More Control Over Ads.”CIO. IDG News Service, 12 June 2014. Web. 11 July 2014

Tassi, Paul. “Facebook’s Advertising Is Starting To Spiral Out Of Control.” Forbes. Forbes Magazine, 01 July 2013. Web. 11 July 2014.

Chan, Christopher. “Using online advertising to increase the impact of a Library Facebook page.” Library Management 32.4/5 (2011): 361-370.

Roberts, Katherine K. “Privacy and Perceptions: How Facebook Advertising Affects Its Users.” 24 — The Elon Journal of Undergraduate Research in Communications • Vol. 1, No. 1 • Winter 2010 Privacy and Perceptions: How Facebook Advertising Affects Its Users 1..1. (2010): 24-32. Web.

Brustein, Joshua. “Facebook Analysts Agree to Disagree on Effectiveness of Its Ads.” Bloomberg Business Week. Bloomberg, 30 Oct. 2013. Web. 08 July 2014.

Albergotti, Reed. “Facebook to Target Ads Based on Web Browsin.” The Wall Street Journal. Dow Jones & Company, 12 June 2012. Web. 03 July 2014.


The gaps in the matrix are probably due to the fact that certain sources only cover a specific topic about Facebook advertising. I feel that this is perfectly fine because sources that are missing information about one area carry a lot more information in the others. I don’t think that more research is needed because I feel that each source brings something new to the table that will assist me in the development of my Inquiry Proposal.

 

BECAUSE CLAUSES AND SIGNAL PHRASE ACTIVITY

Facebook advertising is beneficial for companies because:

  1. They give you ads based off you “likes” on your page
  2. They help businesses thrive and expand
  3. They give people potential happiness
  4. They’re proven be very effective

Christopher Chan estimates,  “that the use of Facebook advertising effectively doubled the rate at which new fans were being added to the Library Facebook page”

Kanphassorn Kuntha recognizes that “Before you are even aware you are constantly interacting with your consumers and potential consumers. The advantage of this method is that unless a fan ‘unlike’ you, they are a fan for life and will continue to receive your updates”

Peter Sayer suggests that , “Facebook will use the information gathered from all those sources to identify its users’ interests and match them with advertising, as it already does with information about their onsite activities.

Research Nugget #4

Marshall, Perry, and Thomas Meloche. “Ultimate Guide to Facebook Advertising: How to Access 600 Million Customers in 10 Minutes.”Google Books. Ryan Shea, n.d. Web. 15 July 2014.

This book is essentially a guideline for businesses who want to advertise themselves on Facebook. Its doesn’t take an side for an argument regarding this topic however its a incredibly helpful source in regards to the fact that it lays out several important and helpful details behind the process of figuring out what to do with the advertisement you purchase to show on Facebook.

“To make it easier for you to understand how well Facebook paid advertising may work for your business, take the www.IsFB4me.com 10-question quiz. It will give you a score from 1 to 10 with the higher score representing a better potential outcome for Facebook advertising.”

  • I chose this nugget because I thought that the idea that there is a quiz that businesses can take to see how well their company will do with Facebook advertisements is very interesting. The book continues with a scale that explains what each number means.

The image should interrupt your target customer and make him want to look further at the ad. It has to catch the eye of the Facebook user and make her want to read your headline and your ad text.

  • This nugget starts off the section that begins to discuss the importance of the visuals of an advertisement. I picked this nugget because this is a topic I am most interested in. The book continues to talk about how sexual images tend to get the best reaction from people and how companies need to figure out how to capture a users interest from a single thumbnail sized picture.

Kim, Larry. “Google Display Network vs. Facebook Advertising.” Web log post. WordStream. The WordStream Blog, 15 May 2012. Web. 15 July 2014.

This is a full length article that compares and contrasts Facebook advertising and Google advertising. It seems to be more biased towards to the fact that Google advertisements are a much better investment however it still supplies substantial and useful information.

I think Mr. Zuckerberg is in denial here – he wants to be this cool company that’s all about “connecting people,” but 85% of his revenue is driven from internet advertising. Advertising is his business model. The sooner he figures this out, the higher the chances that Facebook is actually worth +$100 billion.

  • This part of the article was discussing a quote from Mark Zuckerberg who talks about how his main purpose for Facebook is to connect individuals throughout a network and disregards the amount of advertising Facebook incorporates as well as the revenue they get from it. After finding out that Facebook gets 85% of its revenue from advertising, its interesting to see how Mr. Zuckerberg wouldn’t comment on it. 

Given its impressive global reach, Facebook has the potential to be as much of an advertising behemoth as Google. But the question remains – does Mr. Zuckerberg even want Facebook to be an advertising-based company?

  • Based off Zuckerberg’s quote, we can assume that he’s not to thrilled about the fact that Facebook is turning into a advertisement outlet for major companies. However Im sure he doesn’t mind the mounds of money pilling up.

Serfaty, David. “Facebook to Marketers: Get Smarter With Your Creative | DigitalNext – Advertising Age.” Advertising Age DigitalNext RSS. AdAge, 19 Feb. 2014. Web. 15 July 2014.

This article talks about the logistics behind the process of advertising on Facebook. It includes several sections that discuss the process of Facebook’s advertisement  and even though Ive found several sources that talk about the same topic, this source discusses the people involved and what their jobs are like.

With Lookalike Audiences, marketers can get very close to ensuring that every piece of ad creative they produce with Facebook is targeted at a specific user group based on those users’ similarities to the advertisers’ existing customers.

  • I chose this nugget because I thought that the Lookalike feature that Facebook is using is very interesting the way that it will give advertisements to people who’s profiles look similar.

This means that marketers need to jettison generic ad creative and text-heavy wall posts in favor of high-quality, engaging ad creative with smart imagery and limited text. Facebook will reward them for doing so with greater exposure in users’ News Feeds.

  • This talks about how Facebook is turning to overloading users news feeds with ads to make their advertisement process more efficient.

SYNTHESIS!

Overall the sources I found each carry their own unique weight about Facebook advertising. The book I found was very interesting since it was an source that was written for business men to understand what they would be getting into if they were to go ahead and use Facebook advertising for their products. The other two sources stated information very similar to previous sources I have found. The second article stated information I was already aware of from other sources including the third source I found however it was incredibly helpful since it would compare the advertising information fro Facebook to that of Googles. The final source was very similar to sources I found in previous research nuggets though it still provided much needed information.

Nugget #6

I chose this nugget because I believe that it states an idea that is very crucial especially in todays society. The fact that technology has gotten to the point were that its able to basically simulate our potential to talk to other human beings or even think for ourselves is unsettling. I think that this short nugget greatly captures that idea as well as summing up the section of the article that it was in. There is a great video of a man who recited a poem he wrote regarding this topic. Heres the link.

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“Although thinking goes on in one’s head, external media serve to materialize thoughts and, through feedback, to augment the actual paths the thinking follows. Methods discovered in one medium provide metaphors which contribute new ways to think about notions in other media. ”

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Research Nugget #3

Sayer, Peter. “Facebook Will Gather More User Information, but Offer More Control Over Ads.”CIO. IDG News Service, 12 June 2014. Web. 11 July 2014

The point that this article comes across is about the increase in information Facebook will be collecting from its users in order to supply them with more ads. It also talks about how Facebook is allowing for users to have more control over their ad experience than before as a sort of comprimise.

Facebook will use the information gathered from all those sources to identify its users’ interests and match them with advertising, as it already does with information about their onsite activities.

  • This talks about how Facebook is going to begin collecting information from other sights linked to Facebook to allow for even more ads that will peak at users interest.

A screenshot illustrating the function showed that clicking on one corner of the ad will drop down a menu allowing users to select one of four options: “I don’t want to see this,” “Hide all ads from this advertiser,” “Why am I seeing this?” and “This ad is useful.” Asking for more information will show the interest areas identified by Facebook to which the ad is related, allowing users to reject further ads associated with that interest.

  • This nugget gives a picture as to how Facebook has started to give users more control over the ads that their users will be facing in the future. I think that this is a very wise move for Facebook since they will be bombarding their users with more ads, this gives them the ability to claim that their users are able to control their ad experience if they were ever to get back feedback about the excess ads.

Kuntha, Kanphassorn. Advertising on Facebook. Pathum Thani, Thailand: Faculty of Journalism and Mass Communication, Thammasat U, 2011. Sciseb. International Journal of E-Business Development, Nov. 2011. Web. 11 July 2014.

This was an excellent source that went into detail about the precise process that Facebook goes through during their advertising process. The source doesn’t take a side per say but it lists out a large amount of facts about Facebook users world wide and goes into detail about how certain advertisements find there way to specific users.

Audiences can be targeted by location, age, relationship status, and interests. They can also be targeted by language, as Facebook is available in 40 languages with many more in development. Facebook has focused its advertising strategy around its vast member data, allowing advertisers to target an audience segment precisely. Facebook offers advertisers the ability to reach their exact audience — from a broad demographic, to a geographic preference, and to a more granular interest development

  • This nugget is a clip from when the author began to discuss how advertisement can be supplied to specific users. It goes on to discuss how you can choose who can see the ads from their gender to the language they speak to the area in a certain country they live in.

Before you are even aware you are constantly interacting with your consumers and potential consumers. The advantage of this method is that unless a fan ‘unlike’ you, they are a fan for life and will continue to receive your updates.

  • This talks about how companies are able to interact on Facebook with their customers. Its a very interesting idea since all they need is a “like” and they can supply their followers with as many ads and offers as they please.

Tassi, Paul. “Facebook’s Advertising Is Starting To Spiral Out Of Control.” Forbes. Forbes Magazine, 01 July 2013. Web. 11 July 2014.

This article was very interesting to read since it brings Facebook into a new perspective. It shows how Facebook has turned to any means necessary to keep itself from becoming they next Myspace or AIM, social media sights that were thrown aside because of loss of interest.

Facebook has tried to wear many masks in order to stay relevant over the past few years. It believes its chat and message systems can compete with Gmail. It was letting people upload videos and pictures before Vine and Instagram were cool, yet both are now more trendy than the site itself. You can follow celebrity or public figure posts now the way you would on GooglePlus. The site has even added Twitter’s hash tags now, so you can see what hundreds of other people who don’t understand their privacy settings are doing on #friday.

  • This nugget went into description about how Facebook has adapted to the modern social media crazes and has adopted many aspects that other media sights have produced in order to maintain a social media dominance by not letting any other sight have any aspects that Facebook hasn’t already acquired.

I will admit it’s not always the case that an ad is my lead story when I pull up Facebook, but I’d say I see one a solid 40-50% of the time. And if it isn’t there immediately, it’s only a scroll or two down the list.

  • I chose this nugget because it casually brings up a very important topic. The fact that you can never escape ads on Facebook and that almost all the time you will see them and the longer you use  Facebook the more ads you will come in contact with.

SYNTHESIS!!!!

From the very first article you can see that Facebook is starting to change the way they run things to stay on top.  A similar topic is brought up the third article were Facebook’s adaption to other media sights is mentioned. Both sights discuss how Facebook’s advertisement campaigns have become much more involved with their users information in order to increase the amount of advertisements as well as adding new experiences that mimic those of other social media sights. The second source touched on similar topics discussed in the others however stood alone in the wealth of information it supplied. It went into great details and covered many different aspects about the background of the advertisement process in the world of Facebook.

 

Concept Experience #5

Facebook tinkered with users’ feeds for a massive psychology experiment

Scientists at Facebook have published a paper showing that they manipulated the content seen by more than 600,000 users in an attempt to determine whether this would affect their emotional state.
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The paper, “Experimental evidence of massive-scale emotional contagion through social networks,” was published in The Proceedings Of The National Academy Of Sciences. It shows how Facebook data scientists tweaked the algorithm that determines which posts appear on users’ news feeds—specifically, researchers skewed the number of positive or negative terms seen by randomly selected users. Facebook then analyzed the future postings of those users over the course of a week to see if people responded with increased positivity or negativity of their own, thus answering the question of whether emotional states can be transmitted across a social network. Result: They can! Which is great news for Facebook data scientists hoping to prove a point about modern psychology. It’s less great for the people having their emotions secretly manipulated.
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In order to sign up for Facebook, users must click a box saying they agree to the Facebook Data Use Policy, giving the company the right to access and use the information posted on the site. The policy lists a variety of potential uses for your data, most of them related to advertising, but there’s also a bit about “internal operations, including troubleshooting, data analysis, testing, research and service improvement.” In the study, the authors point out that they stayed within the data policy’s liberal constraints by using machine analysis to pick out positive and negative posts, meaning no user data containing personal information was actually viewed by human researchers. And there was no need to ask study “participants” for consent, as they’d already given it by agreeing to Facebook’s terms of service in the first place.
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Facebook data scientist Adam Kramer is listed as the study’s lead author. In an interview the company released a few years ago, Kramer is quoted as saying he joined Facebook because “Facebook data constitutes the largest field study in the history of the world.” It’s a charming reminder that Facebook isn’t just the place you go to see pictures of your friends’ kids or your racist uncle’s latest rant against the government—it’s also an exciting research lab, with all of us as potential test subjects.
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Research Nugget #2

Chan, Christopher. “Using online advertising to increase the impact of a Library Facebook page.” Library Management 32.4/5 (2011): 361-370.

The main point of this article is the process of analyzing the social media network known as Facebook to test the efficiency of its advertising network. Studies were done in universities nationwide to get students more interested in the library pages of each university.

As the results of this study were being analyzed, it was surprising justhow much information about Facebook users was being made available to advertisers, and the extent to which Facebook tracks the activities of its users.

  • I chose this nugget because I thought it was interesting that the even the author was surprised by the amount of information Facebook gathers from people regarding their interests and their activity on the social network.

This suggests that the use of Facebook advertising effectively doubled the rate at which new fans were being added to the Library Facebook page.

  • After organizing the test to see if users would be more inclined to use the Universities library page after it was advertised on Facebook I thought this was a very good summary nugget of the results. The amount of views on the page doubled proving that Facebook advertisements are very helpful.

Roberts, Katherine K. “Privacy and Perceptions: How Facebook Advertising Affects Its Users.” 24 — The Elon Journal of Undergraduate Research in Communications • Vol. 1, No. 1 • Winter 2010 Privacy and Perceptions: How Facebook Advertising Affects Its Users 1..1. (2010): 24-32. Web.

This scholars source talks about studies done on Facebook users to determine they’re perception of how the ads on Facebook effect them.

The site lets advertisers select the exact demographic that sees the ad, which helps them not waste time or energy on people outside of their chosen market. The advertiser can view the results of who is clicking their ad, and modify it accordingly.

  • While discussing the advertising techniques that Facebook used to make it such an alluring outlet for companies, this nugget talks about how companies are able to send out their ads to Facebook users who show interest in similar areas to their product and so makes the advertisement process much more productive. 

According to Facebook Statistics (2009), there are over 300 million current active users (i.e. users that have logged-on in the past 30 days). Facebook users have claimed the site a “necessity, along the lines of oxygen, water, and food” (Verna, 2009). For many people, visiting Facebook has become an integral part of their daily lives, and has even caused some to have an un- healthy obsession with the site.

 


Brustein, Joshua. “Facebook Analysts Agree to Disagree on Effectiveness of Its Ads.” Bloomberg Business Week. Bloomberg, 30 Oct. 2013. Web. 08 July 2014.

The argument that this artier takes is that Facebook ads are not being used to there full potential and that they are loosing steam. It talks about how big of an advertising agency it is and continues to  go onto supplying its readers with numbered facts surrounding this topic.

Elliott argues that Facebook isn’t taking advantage of its assets. For instance, the company touts the value of the social graph, an in-depth look at its users’ social connections.

 Analyzing data from traffic on social sites, it found that people are clicking on more Facebook ads and advertisers are seeing 58 percent higher returns on investment than they were a year ago.

  • Similar to a nugget I chose for the previous source, this shows how useful advertisements on Facebook can be since they can double the revenue and activity for companies who use Facebook to advertise their products.

Facebook still drives about 57 percent of that traffic. A year ago it accounted for 77 percent. Pinterest and Twitter have gained the most ground. If advertisers really are unhappy with what Facebook has to offer, they’ll soon have more options.


Synthesis:      Each of the sources I found brought something different to the table regarding the effectiveness of Facebook advertising. The third one was a shorter article however was really helpful in regards to the fact that it took both sides of the argument. It also had similar thought to the source that talked about a social experiment. The second source I found (was a pdf so could not be linked) took a different perspective by discussing a social experiment with university students to see the effectiveness the ads would have in getting student to use library resources. The third and  first shared much similar ideals including the fact that companies that used Facebook ads experienced a spike in activity from their users that doubles in their customer numbers.