The business landscape has shifted significantly in the past 20 years, particularly for small businesses. In the past, it was very challenging for small companies to stand out since larger firms could spend much more on advertising. Nowadays, both small and large businesses are using social media to run their ad campaigns. While this has many advantages, there are also some drawbacks to keep in mind.
Below, I list a few of the advantages and disadvantages that, hopefully, will help you make an informed decision on whether or not you should consider using social networks to advertise your business or products.
Pros:
- Greater exposure to a broad range of potential clients and customers
Thanks to the rise of social media, small businesses are finding themselves on a similar level as large companies and corporations. The cost of running a successful ad campaign on social media is minimal compared to the expenses of television ads, potentially reaching hundreds of thousands of potential customers. With newspapers or local TV ads, businesses typically reach only a small audience, but a solid social media campaign can connect you with people worldwide for much less than local advertising would cost.
- Little to no cost for small business startups
While you can set up a Facebook, Twitter or most other social media accounts free, in most cases, you will also want to take advantage of the low-cost advertising available through social media sites. For instance, with Facebook, you can use the promotion tool which allows you to spend a small amount of money (or larger amount depending on how many people you want to reach) and have your business show up on Facebook users pages.
- Greater targeting of potential clients and customers to specific locations or interests
The great thing about promoting your business on Facebook is that the promotional ads can target very specific audiences, such as a local business targeting potential customers in a 50-mile radius or a business specializing in sports equipment targeting those who are into sports. With other types of advertising campaigns, it is very hard to reach specific audiences, so you may end up paying much more than you should, to reach people who may not even be interested in your company or product.
- Greater potential for customer feedback and “word of mouth” (through sharing)
With social networks, your customers can provide immediate feedback on your company or product. Current satisfied customers can also “share” a link to your company’s page, allowing more potential clients or customers to become aware of your business or product. Just a handful of customers talking about your business can in turn land you hundreds or even thousands of leads.
Cons:
- Higher chances of irrevocable damage to brand image
While gaining exposure to all of those potential clients can be a great thing, there is also the risk of harmful exposure. Social media allows for “word of mouth” advertising, where customers can discuss the good, the bad and the ugly about companies. In other words, if you offer an excellent service and have many satisfied customers or clients, this will come across on your Facebook page or your Twitter feed. If you have customers with bad experiences, however, this can also come across social media and can significantly impact future clients.
- Other competing businesses also using social media
One of the downsides to using social media to launch your business’s advertising campaign is that many other companies employ the same platforms for their advertising needs and you may find the competition rather stiff, and sometimes conflicting, depending on the service or product you are offering. As social media networks become increasingly popular, more businesses are cramming the platforms, making the competition unbearable in many sectors, and requiring more brainstorming and innovation to emerge to prospective customers or clients.
In conclusion, social networking makes it quite easy for a slight misstep to cause irreparable damages to businesses. However, the evolving nature of relation and communication between businesses and consumers, and the many success stories we hear from businesses that actively employ social media platforms not only makes it an enticing option but also makes it an important one.