Social media and the advertising business model
Advertising on Facebook v. Twitter

As the prevalence of social media continues to rise, organizations of all types and sizes are recognizing the ways in which social media can help them better understand, respond to, and attract the attention of their target audience.

Through Facebook, companies can connect with real people: they can reach over 400,000,000 active Facebook users, attach social actions to their ads to increase relevance, create demand for their product with relevant ads. Businesses decide whether they want to advertise their own web page or something on Facebook like a Page, Application, Group or Event. Businesses upload creative including a title for their ad and content for the body of their ad in the space provided. A preview of it will be shown to them.

Businesses can target their exact audience with demographic and psychographic filters about real people. Facebook targets all users 18 and older in the default location.

Companies can create Facebook ad by quickly creating image and text-based ads to advertise their own web page or something on Facebook like a Page or an Event. They can choose to pay per click (CPC) or impression (CPM) in their local currency. Ads in the same campaign share a daily budget and schedule. Once the campaign set up, businesses need to set their daily budget and their schedule. How much do they want to spend per day? The minimum budget is US $1.00 a day. Then, they need to define if they want their campaign run continuously starting once the ad is approved or at a specified start and end date. Finally, they need to confirm the maximum they are willing to pay per click or per 1000 impressions depending on their payment method. The suggested bid range shows what other advertisers are currently bidding to reach people in the same target.

The final step of the ad creation process is to review your ad (targeting, budget, errors…). Companies can track their