Advertising is the main reason for Facebook’s success. Many
businesses create ads on Facebook, and it gets paid to deliver the ads. It
publishes ads on the screen that is directly related to the users by gathering
their likes and activities. i.e. if a user mentions that he/she is a fan of
Coca-Cola, then the ads related to that will be showing up to that user.
Even though the click through rate of Facebook is not as
high as Google, it is generating real traffic with the ads in it and letting
the businesses to have a successful advertising campaign. This type of ads is
called Engagement ads, and it is placed on the homepage of Facebook.
Last year Twitter generated a revenue of around £600 million. They achieve this by advertising promoted tweets where advertises pay to have their messages or posts appear on the users Twitter stream. They can target specific users through keywords and Twitter gets payed when users engage with the promoted tweets. Another method that twitter use is to have promoted trends also which can trend to vary on location.
Advertising on Instagram is becoming increasingly
sophisticated. One of the features allows advertisers to show slideshows and
link to sites outside Instagram. Its carousel ads “bring the potential of
multi-page print campaigns to mobile phones – with the added benefit of taking
people to a website to learn more,” according to Instagram’s business blog.
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