OUR TAKE ON THINGS
Over the years, many brands have raised doubts about social media’s ability to generate revenue. But according to some stats from Gartner Research, social commerce sales are expected to bring in $30 billion each year by 2015.
According to the data, about 20% of shoppers prefer a brand’s Facebook page to its website when making purchases. One in three businesses use Facebook to reach out to customers, about 10 million registered small businesses have a Facebook presence and 89% of agencies use Facebook for advertising purposes.
The study also proves that 79% of fans following brands on Facebook are more likely to purchase items from the company than 41% of non-fans. This data makes 89% of small businesses believe that Facebook is a valuable marketing tool.
The data from Gartner Research shows that Facebook drives 26% of referral traffic to business websites. Further, companies see a 58% drop in marketing costs when moving to Facebook. It also reveals that fans share brand related content when it’s interesting. 36% of users post brand related content to their wall.
The positive findings do not end here. While it is expected that social commerce sales will bring in $30 billion each year by 2015, it is also predicted that 50% of these web sales shall occur through social media.
In 2011, $3.8 billion of Facebook’s $4.27 billion revenue came from businesses advertising their services. This figure is expected to rise to $6 billion by the end of 2012. In 2011, Facebook had given 200,000 small businesses $50 in free advertising credits to attract businesses. It has turned out to be a $10 million investment worth every dime for Facebook as well as the businesses reaping the benefits of marketing through Facebook.