Facebook

Facebook is a social media site where advertising is very effective. The US has over 160 million people checking into Facebook each month. Companies advertise on Facebook by creating pages about their company and then they have people become a fan by liking their page. This is extremely effective because once you like the company’s page they tell you about their new products and upcoming sales which you see on your news feed. They get more people to like their page by having one person like the page and then it shows up on their friends news feeds that they like the page and more people like it because they think it is the "cool" thing to do. This is good for the company because it creates more impressions that the company gets. Just by creating a page on Facebook Starbucks has advertised to 5.6% of America. This is extremely effective because some companies spend millions of dollars on a 30 second commercial that may not even reach this many people and the commercial costs money every time it has to run (Sean). According to a study done by Arthur J. O'Connor 99.95% of how a stock changed was based on how the fan counts for the company changed. This shows just how effective Facebook can be in advertising because companies can make money just by getting likes on their page (Marritz).