10 Statistics About Facebook That Reveal Its Value As a Tool For Businesses
Facebook is reporting 2.7 billion monthly users in the second quarter of 2020. Do you really think your customers are not using Facebook to connect with other users and businesses?
As business owners, we’re sure you get plenty of advice on why Facebook is important without any statistics to back those views up. We won’t waste your time trying to convince you of the value Facebook has for your business without evidence. Instead, let these new 2020 statistics speak for themselves and you can decide if Facebook is valuable for your business.
1. Reaching an astounding 60.6% of internet users, Facebook is the largest used social platform
2. 37% of people 65+, 60% of those 40–60, 84% of those 22–38, and 74% of those 21 and under use Facebook
3. 80.4% of US Social Referrals are from Facebook
Social referrals are a key part of facilitating conversions, from social media views to click-throughs and then to purchases. A social referral is when a user engages with content posted by a brand and then clicks onto their business page from that piece of content. A brilliant piece of content can lead a customer on a journey from mere entertainment, to brand discovery and driving your new customer to make a purchase.
It’s almost an invitation saying “hey, we think you might like this content, and while you’re here, come to our page and see more content/services/products you might like”.
4. Instagram accounts for 10.7% of social referrals
Keep in mind that Facebook and Instagram are both owned by Facebook so when you connect your Facebook business page with your Instagram page you can share content simultaneously to both platforms, gaining you social referrals on both pages.
5. 15% of Facebook’s users use the app for shopping
Facebook reported 2.6 billion active monthly users as of Q1 2020, that means roughly 390 million monthly users that are going on Facebook just to shop.
6. 78% of Americans reported they have discovered retail products to buy from Facebook
7. The average cost per click on Facebook for the Automotive Industry is $2.24
8. The average cost per 1,000 impressions is $7.19
Why is that number important for your business?
This is vital for businesses to understand when you compare the cost of advertising on Facebook to the cost of something like marketing with a direct flyer mailer.
A quote we received in November 2020 estimated it would cost $3,330 to mail 5,000 8x11 postcards.
When mailing postcards, often you are just mailing them to every person with an address in a certain area, hoping the flyers reach a few relevant customers in that area.
It is a little of the ‘mail and pray’ method, you are mailing flyers to any person in the area — praying some of them to decide they want to work with your business based on receiving your flyer and that your advertising money will be well spent.
The cost per flyer from the example above would be $0.67. With a Facebook Ad, we can treat an impression the same as a flyer the client receives in the mail. The ad on Facebook (if done correctly by an Advertising Professional) will only appear to users in the relevant area that also meet the requirements and online behaviors set in place for the ad.
Not only are you spending $7.19 to reach 1000 potential customers on Facebook instead of $666 via mailer, but that online customer group is going to be a more relevant customer base because of the detailed targeting used in the ad.
$3,330 will get you 5,000 postcards to anyone who lives in your selected area
$3,330 spent on Facebook ads will see an average of over 450,000 impressions
9. Users click on an average of 11 Facebook Ads a month
10. 180 million businesses use Facebook and their Apps to connect with customers
With 180 million other businesses already on Facebook and connecting with their customers, doesn’t it makes to have your business join this online community and start connecting with your customers too?
Optimize Social Media provides social media & reputation solutions that evolve with our clients. As social media experts we manage Facebook, Twitter, Google, Yelp, YouTube and Instagram accounts for our clients daily. We help the modern business owner implement a specialized social media strategy so they can make more money in real life. Enjoy our blog.