Opinion

Are we in the middle of a Facebook bubble?

In this guest post, James Coleman suggests brands should not create a Facebook page just because everyone else is

During the last fortnight I’ve been struck by the number of times the Facebook icon has appeared at the end of TV ads. Become a fan of food, insurance, homewares, automobiles, travel, whatever. It’s over 15 years since we experienced the internet bubble, but I’m feeling like we’re in the midst of a Facebook bubble.

With over 600m users, Facebook is the largest social networking site in the world. Mashable reported last September that users spend more time on Facebook than Google. Facebook users share photos, videos, links, questions and status updates, sharing their lives in meticulous detail. Businesses are also using Facebook to communicate with their customers and create their own pieces of owned and earned media.

On paper, Facebook is an attractive business channel – a large audience of captivated users waiting to hear from you. Fuelled by the hype that companies must have a fan page otherwise competitors will steal customers and ultimately wallets away, it is no wonder we’re a seeing an explosion in the number of company fan pages being created.

However, the number of successful Facebook branded fan pages is low.

I’m not sure if it is marketers or CEOs who are to blame, but there seems to be a glut of companies creating accounts just to say “we have one”. The saying ‘build it and they will come’ does not always translate for a brand’s Facebook page.

The growth in Facebook company pages is starting to feel a little like the internet boom of the late 90’s, where businesses were encouraged to get online or risk missing out on the riches.

Don’t get me wrong. There are plenty of businesses that have used Facebook successfully to build online communities full of brand advocates. But the majority of pages are underperforming.

As a result many businesses must be starting to doubt the effectiveness of Facebook as the returns are not matching the investment. And I won’t even get started on the issue of risk reputation and IP management. Some company’s Facebook pages are more of a liability than an asset.

The biggest reason Facebook pages fail is the lack of resources companies devote to them, and the simplistic and tactical approach taken. To build an active community and succeed on Facebook takes a lot of manpower and much preparation work. A simple one-way broadcasted message is not going to cut it with a community that wants to be involved in discussions with a company’s brand.

Another reason for underperforming pages is the failure to integrate Facebook and other social media into a business’s overall marketing activity. Instead Facebook is treated in isolation, almost with its own set of rules.

I seriously hope this is not the start of a Facebook bubble. Done properly, Facebook offers companies many opportunities to connect and enhance their customer’s experience, which will ultimately improve the bottom line.

To avoid a pink elephant scenario companies should think long and hard about the big picture before rushing off and creating a Facebook page.

  • James Coleman is the operations manager at Melbourne interactive agency The Online Circle
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