How do Social Media companies make money? “Senator… we run ads…” and they make billions doing it. Facebook is second only to the Google Ads network in advertising revenues and its because of the sheer scale of daily active users on their platform. In fact, nearly 1.47 billion people or 66% of their monthly active users engage with Facebook on a daily basis.
The argument for advertising on these platforms is easy to make. With so many people engaging daily with social media it’s a compelling opportunity for your business to reach your target audience. But, it’s not just the reach that these platforms provide that make them great for advertisers, it’s their targeting abilities.
Targeting on social media is based on audience psychographics and demographics. Ads can be targeted to segmented groups of people based on their activities, interests, age, gender, income levels and even job titles, just to mention a few. This enables advertisers to deliver very compelling ads to the people that are most likely to engage with them. Done right, social media ads can be very effective for your business.