Facebook allows over 400 million people to connect worldwide. It targets advertisements to users based on demographics like age, gender, and interests. While some disadvantages exist like fraudulent clicks and market saturation, Facebook advertising can be effective for businesses. A clothing company used free Facebook fan pages to expand from small local sales to a profitable business with $50,000 in annual revenue. Overall, the document finds that Facebook advertising is generally successful due to unique targeting abilities, though uncertainties remain like ad relevance.
