Research proposal

Berger 1

Name

Professor

Course

December 2 , 2008

Is Advertising on Facebook the Right Move for Companies

The struggling economy means businesses must find solutions to generate revenue from customers who have less disposable income . One idea being used by companies is Facebook , an Internet-based social network for people to access others . However , business people are stumped over how to best reach this audience without being intrusive or overstepping privacy laws

Determining new customers strategies through Facebook have been futile According to an IDC survey , less that

three in five people , or 57 percent , clicked on an advertiser while using the on-line service (Stone , 1 ) Worse , just 11 percent of those potential customers actually bought products through those Facebook ads (1

One observer said it is unlikely people who are primarily interested in their friends lives are inclined to purchase goods and services on-line Ted McConnell , a Proctor Gamble general manager , said Facebook is not someplace most people go to shop (1

Microsoft disagrees with McConnell 's assessment of advertising on Facebook . According to their website , more than 38 million people access Facebook monthly (Microsoft , 1 ) That means there are many opportunities for people to share opinions regarding what they like and dislike . Plus there are ways Microsoft to research those likes and dislikes and have those companies come in contact with those potential buyers (1

Another reason why Microsoft hopes advertisers will try harder to reach customers . The demographic of Facebook users is the one most advertisers covet : 18-to...