Facebook will make about $310 Million in ads this year and quite surprisingly $229 Million will come from local advertisers. That means that local advertisers account for 74% of the total ad revenue. This is the reason Facebook can be effective because you can target a certain area.
The other benefit is you can create an ad as low as $1 a day that will be sent to your target market. I am currently doing that with Gameday Rivals and have gotten over 162,000 impressions and have spent only $34.
Another way to market to customers on Facebook is by creating a Fan page. Jackie Bese who’s been utilizing Facebook for years suggests that if you are going to create a Facebook Fan page for your business make sure you have an 80/20 balance in your marketing. Huddle Productions did a video interview with Jackie Bese on Social Media and who you can use it for Business.