Social networking in business - Facebook

Using Facebook

Over the years, there's been an abundance of new technology to help sales and marketing departments improve and track their performance. Although things have been tough over the last 18 months, advances in technology means that they are new effective ways for businesses to connect with those around them.

Recent years has seen the rise of social networking - a new way to allow businesses to connect, not only within, but with their customers.

Europeans are getting more socially minded every day. According to the Internet Advertising Bureau, Europe will be spending a lot more time interacting with social media in 2010. European companies are said to be using social media mainly for research purposes and to drive product sales. European users meanwhile are spending more and more time on the web and in particular on social media sites, Hotelmarketing.com reported.

Facebook success

According to comScore, Facebook is the most popular social network in 11 out of 17 European countries. Other social networks are feeling the pain of the Facebook growth but still play an important role.

Although some companies have struggled with the idea of social networking, one company who has embraced it, is Domino's Pizza.

"Facebook is central to our social media strategy," says Robin Auld, marketing director of Domino's Pizza UK & Ireland, to silicon.com.

The latest addition to this strategy is a Superfans application on the company's Facebook profile page. Loyal fans of Domino's on Facebook are rewarded with a promotional code which can be used to get discounts on pizza deliveries. "This application will enable us to leverage the importance of brand advocates in growing our customer base," explains Auld.

Growth of social networking

According to recent research from analyst Forrester, use of social networking tools by marketing departments is set to increase throughout 2010 and beyond as companies search for ways to reach out to, and extend, their customer base.

It's predicted that spending on social media in the US alone will grow from US$716 million in 2009 to more than US$3.1 billion in 2014. This rise in marketing spend on social networking platforms is higher than any other form of interactive marketing - the total market for which is set to grow from US$25.5 billion in 2009 to nearly US$55 billion in 2014.

2009 ended with major shifts in social network advertising spending. Facebook, at 350 million users worldwide, is the premier destination for marketers in the US and many worldwide markets. In 2010, it is predicted it will surpass its former rival, MySpace, in ad revenues. In total, marketers will spend US$2.2 billion to advertise on social networks worldwide in 2009, with US$1.2 billion in spending in the US. In 2010,Facebook will account for nearly one-quarter of all social network ad spending worldwide, up from 20 percent in 2009, Research and Markets stated.

While companies may have been happy to experiment up until now, the next 12 months will see a focus on the social platforms that can turn customer connections into actual sales.

According to Ed Thompson, analyst at Gartner, Facebook will become the number one social network in all but 25 countries.

"Facebook membership hit 300 million in September 2009, and is roughly doubling each year," says Thompson. "It is reasonable to assume that it will attain a membership of 600 million (including inactive accounts and a small number of users with multiple accounts) by the end of 2010 based on the trajectory in 2009."

As Facebook continues to grow, so will its importance - Facebook has strategic value as it brings millions of people into one place. How will you use it for your business?

Jodie Humphries

Jodie Humphries graduated from Bath Spa University with a BA Hons in Creative Writing in 2008. She has worked for GDS Publishing for the digital group since July 2009. She has previous experience with writing for the web, running her own website since April 2007.

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