ANALYZING EFFECTIVITY OF FACEBOOK ADVERTISEMENTS FOR

SMALL BUSINESSES

Proponents:
Castromayor, Jozl
Cortes, Pearl
Escultor, Rochelle
Gilboy, Elaine
Nool, Kristel
Manaois, Jovan
Mojica, Danielle
Omalin, Rhojean

Instructor:
Prof. Brian Carlo Bobadilla
PURPOSIVE COMMUNICATION
 INTRODUCTION

Background of the Study

Advertising through different social media platforms, calling it "social media marketing,"

is a rapidly growing trend within marketing in present times. The effectiveness of Facebook

advertising by small businesses and its benefits has been one of the most important social trends.

Organizations are interested in exchanging and spreading information through the application’s

advertising feature. In trading products and services, staying close to current and potential

customers, acquiring a better understanding of their customers, and other benefits generated by

Facebook. It is considered by many businesses as a cost-effective strategy to employ when

establishing communication with customers.

Due to the effects of the global pandemic, more physical businesses have shifted to

different online platforms. Physical advertisements also transform into online advertisements to

create awareness of their product and/or service. Small business owners would have to navigate

what the most effective way was to establish that awareness.

Synthesis of Relevant and Related Literature

Facebook Advertising. Free advertising on Facebook can create momentum to reach

potential consumers organically and has the capacity to increase publicity and revenue by

providing human needs and emotions. (Palma, 2017). In fact, Facebook, being relevant to the

majority as a wide social media platform, is a good path for small businesses to take since it is

more profitable and cost-effective compared to other platforms. (Van Brakel, 2020). Integrating
the digital strategy with the features of Facebook advertising can provide the effective targeting

of consumers with a wide range of campaign formats. (Kim, 2017).

Content Engagements. Yang, Ren, & Adomavicius (2019) provided that business pages

that surround Facebook establish communication between the seller and consumers.

Furthermore, it implies that consumers can receive proper customer service as it is a medium,

similar to cellular and telephone numbers, that directs them to the business establishments. In

addition, they concluded that the major form of how businesses engage is through the use of the

application’s reacting and commenting sections. Thus, this creates a pattern of more reactions

but fewer comments and vice versa on every advertisement post of the business. Mariani, Mura,

and Di Felice (2018) emphasize active engagement in social platforms through the use of visual

content, which can result in a successful and effective reach to the target market.

Consumers often observe social media advertisements for their quality of content or

posts, their user interface, and the frequency with which they visit for updates. (Jacinto, et al.,

2021). The engagement of consumers in social media has contributed to a positive response to

advertisements wherein, if there is strong product awareness, consumers are most likely to buy

the product. (Jinang, et al., 2019).

Electronic Word-of-Mouth. The momentum that engagements make on social networks like

Facebook acts as the medium that significantly impacts consumers’ purchasing intentions. (Husnain &

Toor, 2017) Business should also be focused on consumers’ skepticism in order to attain loyalty to the

brand through establishing trust, which can be a marketing niche for the owners. (Manojkumar &

Sharma, 2018).
 The likeness of consumers purchasing products is significantly influenced by the

interactions influenced by the opinions of their personal friends, other consumers and sellers.

Electronic word-of-mouth, or the sharing of personal experiences, reviews, or opinions via

online means, explains consumer decisions in online product purchases. (Catedrilla, 2017). In

addition, having a persuasive and informative campaign through an influencer can boost a

product’s credibility, which can have an impact on the buyer’s purchasing decision. (Dalangin,

McArthur, Salvador & Bismonte, 2021)

Statement of the Problem

The main thrust of the study is to analyze the effectiveness of Facebook for small

businesses.

Specifically, it aims to answer the following questions:

1. How effective are Facebook advertisements for consumers in terms of:

a. Content Engagement

b. Electronic Word-of-Mouth

2. How effective is Facebook as an over-all online marketing strategy for small

businesses?

Significance of the Study

The study's findings could have a significant impact on the following beneficiaries:

Small Business Owners. Facebook advertising is one of the most common forms of

online advertising as there are many users of the application, and with that, small business
owners would benefit a lot from the study. The study's findings would provide entrepreneurs

with various methods for establishing an effective advertising strategy in the application.

Consumers. This allows them to decide which businesses they want to support. The

findings of the study would allow them to frequently seek information about the products that are

being offered with convenience. 

Department of Trade and Industry. The results of the study would give them

additional information on the different features that can be used on Facebook to ensure that

advertisements abide by the rules and regulations set by the government for consumer safety. 

Facebook (now known as Meta). The ability to target a particular audience is a major

benefit of Facebook advertising. The findings of the study would provide information on how the

developers of the application can update its features to help businesses advertise their products

and services and increase interactions with existing and potential customers.

Future researchers. The findings would serve as future reference in further research on

the effectiveness of the application’s advertising features.

Expected Output

The researchers’ end goal for this study is to create a public service announcement in

connection to the results of the study. The researchers’ advocacy is to provide information to

help create an effective advertising strategy to establish their brand’s awareness on the online

platform.
 METHODOLOGY
In this part, the research methodology would be presented specifically (1) research

design, (2) research locale, (3) sampling method (4) research instrument, (5) procedure and (6)

statistical treatment of the study.

Research Design

In order to attain the objectives of the study, the researchers used a descriptive research

design and a quantitative approach in gathering the data needed to analyze the effectivity of

Facebook as an online marketing strategy for small businesses. Descriptive research design

allows researchers to gain an in-depth understanding of their chosen topic without conducting

experiments using scientific methods.

Research Locale

The study was conducted on the social media platform, Facebook. The platform is known

as a social networking site that makes it easy for users to connect and share. Facebook, the

world’s largest social network, was created in 2004 by Mark Zuckerberg while he was at

Harvard University. As the platform continuously updates its services, it helps businesses sign up

on Facebook for free to start-up their small businesses through online advertising. Advertisers

create campaigns that have specific goals that they think will help them get an increase in

visitors. It is also easy to provide customer support to existing and potential customers as

businesses can respond quickly to inquiries and resolve them quickly as well. (Hall, 2021).
Sampling Method

The participants, purposively chosen as Facebook users in the Philippines, ages 18 and

above, will be asked to be part of the study. The researchers will look for 20 respondents as their

participants through the means of purposive sampling, as they will be chosen based on a specific

characteristic required for the study, which is a Facebook user at the age of 18 and above.

Because they will have extensive experience in the chosen topic, these chosen respondents will

provide an inclusive set of participants who will greatly assist in providing the information

required for the research questions and surveys.

Research Instrument

The primary instrument in gathering the data was the survey questionnaire. The

questionnaire was developed through the synthesis of related literature to determine the

indicators that would best describe the variables presented. The questionnaire is composed of

two parts. The first part of the instrument focused on the respondents’ profiles. Information such

as gender would be asked of the respondents.

The second part of the instrument would deal with the effectiveness of Facebook advertisements

for small businesses, specifically Content Engagement and Electric Word of Mouth. Each

variable is composed of eight (8) statement indicators, which the respondents would rate using

the 4-point Likert Scale.

Data Collection Procedure

This research utilized quantitative research that enables us to use it online in gathering

and collecting data from the respondents. In collecting data, we chose an online survey in the

form of using Google Forms that gives the listed questions and multiple choice for the

respondents to choose their best response to every question. It also has easy access and instant

results in collecting data, which can make the research comprehensive.

Statistical Treatment

The study's goal is to determine the efficacy of Facebook advertisements for small

businesses, so the researchers decided to use the Likert Scale as their statistical treatment. They

decided that the result of the scale they used would be interpreted as a percentage. For the reason

that it will be much easier to determine the outcome. Through this statistical treatment, the

researchers will be able to analyze the effectiveness of Facebook advertisements for small

businesses.
 RESULTS
This part presents, analyzes, and interprets the data gathered. These are presented in

tabular and textual form following the sequence of the statement of the problem regarding the

effectiveness of Facebook advertisements.

Table 1 Respondents Profile

Attributes Frequency Percentage
Gender
Male 7 26.9
Female 18 69.2
Prefer Not to Say 1 3.8
Total 26 100%
Age
18 5 19.2
19 14 53.8
20 4 15.4
21 2 7.7
24 1 3.8
Total 26 100%
Facebook Usage
Always 16 61.5
Often 6 23.1
Sometimes 4 15.4
Never - -
Total 26 100%

Table 1 shows the demographic profile of the respondents for the study. For the gender,

the male has 7 attributes with a percentage of 26.9. For females, we have 18 respondents, which

is equivalent to 69.2 and for our respondents that prefer not to say the gender, we have 1

respondent and a percentage of 3.8, for a total of 26 respondents and 100%.

In terms of age, 18-year-olds have 5 respondents, accounting for 19.2 percent of the total.

For 19-year-olds, we have 14 respondents with 53.8 percent. For 20-year-olds, we have 4
respondents with 15.4 percent. 21 years old, has 2 respondents with a frequency of 7.7 percent.

And lastly, 24 has only 1 respondent, for a total of 3.8, for a total of 100% and 26 respondents.

For the time consumed in using Facebook, there are 16 respondents who say "always"

with 61.5%. For "often", it has 6 respondents with 23.1%, and for "sometimes," it has 4

respondents with 15.4%, for a total of 100% and 26 respondents. There’s no response to the

selection of "never."

Table 2 Content Engagement

Results Strongly Disagree Disagree Agree Strongly Agree
I1: Facebook Engagement Ads
Results in
3.8% 26.9% 50% 19.2%
Percentages
I2: Facebook Stories
Results in
- 11.5% 50% 38.5%
Percentages
I3: Facebook Group/ Community
Results in
3.8% 15.4% 42.3% 38.5%
Percentages
I4: Facebook Marketplace
Results in
11.5% 26.9% 19.2% 42.3%
Percentages
I5: Facebook Shop
Results in
3.8% 26.9% 30.8% 38.5%
Percentages
I6: Facebook Video
Results in
- 11.5% 42.3% 46.2%
Percentages
I7: Carousel Ads
Results in
11.5% 42.3% 26.9% 19.2%
Percentages
I8: Automated Chat bots for FAQs
Results in
7.7% 23.1% 30.8% 38.5%
Percentages
RESULT ANALYSIS
Results in
Percentages 5.26% 23.06% 36.54% 35.11%
Average:
 Table 2 presents the different content engagements that a seller can undertake in

advertising its products and services. Data shows that 35.11% of the respondents strongly agree

that different features of Facebook can engage consumers effectively in building brand

awareness. 46.2% of the respondents see that Facebook videos are the most viable way of

introducing a product or service by the seller. In contrast, 11.5% of the respondents think that the

use of carousel ads is the least effective way of communicating their products to their consumers.

Additionally, only 5.26% of respondents don’t see content engagement on the platform as an

effective tool in advertising.

Table 3 Electronic Word-of-Mouth

Results Strongly Disagree Disagree Agree Strongly Agree
I1: Comment Section
Results in
3.8% 11.5% 30.8% 53.8%
Percentages
I2: Like and Reactions
Results in
3.8% 19.2% 23.1% 53.8%
Percentages
I3: Recommendations & Reviews
Results in
- 3.8% 30.8% 65.4%
Percentages
I4: Public Posts
Results in
- 3.8% 42.3% 53.8%
Percentages
I5: Messenger
Results in
- 11.5% 23.1% 65.4%
Percentages
I6: Influencers
Results in
- 15.4% 38.5% 46.2%
Percentages
I7: Poll Voting
Results in
- 30.8% 30.8% 38.5%
Percentages
RESULT ANALYSIS
Results in
Percentages 1.09% 13.71% 31.34% 53.84%
Average:
 Table 3 depicts the efficacy of online interpersonal influence (e-WOM) in the platform,

which plays a significant role in consumer purchase decisions. According to the data, almost half

(53.84%) of the twenty-six (26) participants strongly agreed that the electronic word of mouth

generated by Facebook advertisements is effective in their purchasing decisions, and this

includes the comment section, likes, reactions, and public posts. It also appears that 65.4% of the

respondents think that the use of recommendations, reviews, and messenger are effective

mediums for Facebook advertising. In addition, it shows that the poll vote is the lowest indicator

of the electronic word of mouth, with a percentage of 38.5% of the participants.

Table 4 Effectivity of Facebook Advertisements

Results Strongly Disagree Disagree Agree Strongly Agree
Content Engagement
Results in
5.26% 23.06% 36.54% 35.11%
Percentages
Electronic Word-of-Mouth
Results in
1.09% 13.71% 31.34% 53.84%
Percentages
RESULT ANALYSIS
Results in
Percentages 3.17% 18.38% 33.94% 44.47%
Average:

Table 4 shows the overall effectivity of Facebook advertisements. According to the

collected data, 44.47 percent of the participants strongly agreed that Facebook advertisements are

effective. It also reveals that 53.84 percent of the participants considered electronic word-of-

mouth generated by the platform to be an efficient tool for business owners to promote their

products and build brand awareness. Furthermore, the table also shows that only 3.17 percent of

the participants strongly disagreed that Facebook advertisements are effective.

 DISCUSSION

This part presents the answers to the research questions, the conclusions drawn from the

findings, and the corresponding recommendations.

I. Effectiveness of Facebook Advertisements

Content Engagement. Based on the result, it shows that 35.11% of the respondent are

strongly agrees that Facebook is highly effective to the consumer in building brand awareness

and promoting the business. The use of Facebook Video, a strongly agree percentage of 46.2%,

is considered the most effect feature that the platform offers in introducing the product and

attract potential consumers.

Electronic Word-of-Mouth. As a result of the data analysis, almost half (54.84%) of the

twenty-six participants strongly agreed that the electronic word of mouth generated by Facebook

advertisements is a strong factor in the consumers’ purchasing decisions. The use of the review

and recommendation features and Facebook Messenger, each with a percentage of 65.4%

strongly agrees, is the most selected feature that can also persuade them to buy.

II. Facebook as an Over-all Online Marketing Strategy for Small Businesses

Based on the result of data analysis, an average of 44.47% of participants strongly agreed

that Facebook advertisements are effective in promoting small businesses. With a percentage of
53.84%, electronic word-of-mouth seen in the platform plays a significant role in spreading

information and the quality of the product.

Summary

The data collected from the small number of respondents suggests that the use of the

online social media platform, Facebook, for advertisements is effective in terms of content

engagement and electronic word-of-mouth. Additionally, the data reflects that the use of the

platform for advertising is a viable means of communication with consumers. One reason for this

positive outcome is the frequency of Facebook usage by the respondents. Thus, the results

indicate that the activeness of the respondents on the platform can influence the research data.

Conclusion

The study analyzes the effectiveness of Facebook advertisements for small businesses in

terms of their content engagement and generating electronic word-of-mouth. The researchers

conclude that the use of Facebook as part of the advertising strategy of small businesses is

effective and should be a consideration in building brand image. The influence that e-wom

provides is a salient factor to consider in order to determine the success of the advertisement’s

reach to consumers.

However, the study only involved a small number of respondents, and their age range

affected the results. Additional research might expand the age range of the respondents and

examine the similarities and differences in opinions between age groups. Future research should

also analyze the perspective of small business owners in running the posts and interactions on the

platform.
Recommendations

Based on the limited data gathered in the study, the researchers recommend that future

researchers expand the age group that participates in the study and explore new features the

platform has to offer in the near future that can help businesses expand their reach to their

consumers.

To policymakers, the researchers recommend enforcing rules and regulations on the use

of online platforms for advertisements. The threat of fraud and overpricing can be experienced

virtually. In order to ensure consumer safety and security, special measures must be taken to

ensure the different features of the platforms that are commonly visited by consumers.
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