Facebook Inc(NASDAQ:FB) has fast grown into one of the most popular social networking site all over the world. The site has allowed people to interact with one another, and the more the people joined, the more the site became a very attractive opportunity for small businesses. They could put up their offerings on the site for free, and they even got the opportunity to promote their work, and spread the word around.
The site provided a platform for these budding business groups, but needing to pay for this sort of advertisement is not what most of them prefer. A survey was conducted by Reply through e-mails, and 3,434 members from the MerchantCircle participated in the survey, as respondents. While Facebook remains the most popular site for promotion of small business ventures, they are not willing to pay for these benefits. 68.7 percent of the people who responded said that they used Facebook to promote their products and offerings, but a good 74.3 percent of them said that they would not use the paid services for their promotion.
Only about 6.6 percent of the respondents said that they were using the “Offerings” feature on Facebook. This goes to show that this feature did not really incite people into using it. While these businesses are glad to have Facebook, they are not dependant enough to want to pay to promote their products.
There was a survey conducted last year as well, by MerchantCircle in December. The 2,500 small business companies had responded, out of which 96 percent of them had been aware of the display ad offering by the social networking site. But out of these 96 percent, 23 percent had used the services, after which, the 28 percent of users had said that they would discontinue the use of the offerings. The majority of these people said that the offerings had not helped them gain new customers at all. Some of them reported that the rates to get these offerings were beyond their budget, while a small portion of them also cited low clicks as their reason.