Christine's Question: If you were a business owner would you look to advertise your business online? What benefits do you see from online advertising?
As someone who wants to be a business owner sometime in the future, I will definitely look at advertising online because the internet is so highly used and it would be a great way for people to learn about my business. I would want to have my business as the first to come up on Google and if possible, as a side ad on Facebook, just so that the most amount of people would see it.
There are many advantages to online advertising. Without online advertising, many companies would not be known. Commercials are not a worthy way to advertise anymore because we have technologies like DVR and TIVO, which allow us to fast-forward through commercial breaks and there are websites like Netflix, which are completely commercial free. This would no longer be a useful way to advertise a company, but online advertising reaches many people and is pretty unavoidable.
If you were to advertise online, what websites would you link to in order to get the most results?
Monday, April 23, 2012
Project Glass
Google has become a central icon for many generations. We all use it almost daily to either check email or to read the news or to search something. Google has come out with many different technologies, including phones and now, glasses.
These glasses give the wearer a chance to check their text messages and get directions, all hands-free. But don't take my word for it, watch the following video to learn more. This video was posted on Youtube by Google to see how people would take this new idea:
Do you think that this product will be a hit or do you think it is a dangerous direction for technology? Would you buy this product?
These glasses give the wearer a chance to check their text messages and get directions, all hands-free. But don't take my word for it, watch the following video to learn more. This video was posted on Youtube by Google to see how people would take this new idea:
Friday, April 20, 2012
In Response to Lyndzi's Post
Lyndzi's Question: When you see the Apple symbol/logo what do you think of? What are your first thoughts that come to mind about the brand or product?
Apple is a big brand name in this generation and it is on many products we all purchase or see on a daily basis. It is on our computers, our electronics, and our cell phones. Every time I see the Apple logo, I think of the mania Steve Jobs created when he created Apple projects, which are now sold in most stores, such as Target and Walmart.
When I first learned about Apple, I didn't understand the hype, but then I purchased my first iPod, and I understood. I loved the technology, the app availability and the size of the products. I know own an iPad and my brother owns a Mac book. My family alone shows that Apple is a big brand that many people love. Even my parents have iPod's.
Apple is such a big brand, do you think that even now that Steve Jobs has passed away, the brand will continue to grow?
Apple is a big brand name in this generation and it is on many products we all purchase or see on a daily basis. It is on our computers, our electronics, and our cell phones. Every time I see the Apple logo, I think of the mania Steve Jobs created when he created Apple projects, which are now sold in most stores, such as Target and Walmart.
When I first learned about Apple, I didn't understand the hype, but then I purchased my first iPod, and I understood. I loved the technology, the app availability and the size of the products. I know own an iPad and my brother owns a Mac book. My family alone shows that Apple is a big brand that many people love. Even my parents have iPod's.
Apple is such a big brand, do you think that even now that Steve Jobs has passed away, the brand will continue to grow?
T-Mobile
T-Mobile is known for their spokeswoman, the girl in the pink dress. Each commercial shows this carefree, bubbly girl wearing a signature color pink dress. T-Mobile has decided to shed this look, with a new commercial, featuring this girl looking through her closet of pink dresses and throwing them on the ground. She then looks over to the other part of her room and we see her feet as she steps out of her signature dress and straps on a leather outfit and a motorcycle helmet.
T-Mobile ends the commercial with these words: "Set the Record Straight. Test Drive America's Largest 4G Network". There have been reports that this commercial was made to shed T-Mobile's "girly" persona and appeal to more males.
What do you think is the reason that T-Mobile made this commercial? Do you think that this will help T-Mobile appeal to more men?
T-Mobile ends the commercial with these words: "Set the Record Straight. Test Drive America's Largest 4G Network". There have been reports that this commercial was made to shed T-Mobile's "girly" persona and appeal to more males.
Wednesday, April 11, 2012
In Response to Nichole's Post
Nichole's Question: What else can JC Penney do to help their sales increase? Do you think Penney's is on the right track?
Nichole was referring to their new way of doing business, where there are no sales, just low prices to begin with. I think that this is a great way for JC Penney to market themselves because everyone hates having to make sure they get to the store in specific hours to get the sale. This can be impossible for people in school or at work, so having the low prices all the time is a fantastic way to get more people to shop there. I think that they are definitely on the right track of attaining new customers and keeping the old ones.
I think they could also try to lower their prices online to compete with the other online stores. Online prices are almost always lower than in-store prices, so being low online is a way that JC Penney could get customers.
Would you be more likely to shop at JC Penney now that their prices are lower? Why or why not? Do their ads work for marketing this new business strategy?
Nichole was referring to their new way of doing business, where there are no sales, just low prices to begin with. I think that this is a great way for JC Penney to market themselves because everyone hates having to make sure they get to the store in specific hours to get the sale. This can be impossible for people in school or at work, so having the low prices all the time is a fantastic way to get more people to shop there. I think that they are definitely on the right track of attaining new customers and keeping the old ones.
I think they could also try to lower their prices online to compete with the other online stores. Online prices are almost always lower than in-store prices, so being low online is a way that JC Penney could get customers.
Would you be more likely to shop at JC Penney now that their prices are lower? Why or why not? Do their ads work for marketing this new business strategy?
Sales Promotion
Car dealerships are well known for using sales promotion to get their products purchased. There are multiple yearly sales, and some are even monthly. This month, there are many new leasing and financing options for different car manufacturers that are an attractive feature to those looking into purchasing a new car.
Many car companies have started to decrease the amount of money a car owner is expected to pay each month, which increases the shoppers interest in the cars. There are deals for Toyota, Kia, Volkswagen, Honda, Chevrolet, Nissan, and Hyundai. Specific cars from these manufacturers are all offered for a low monthly price, ranging from $159-$239 and some are offering 0% financing.
http://autos.yahoo.com/news/top-new-car-lease-and-finance-deals-for-april.html?page=2

Do you think that this is the best way for a car manufacturer to sell their products? Would you be willing to purchase one of these cars for this sale? What do you think the car companies could do to get more customers to purchase their cars?
Many car companies have started to decrease the amount of money a car owner is expected to pay each month, which increases the shoppers interest in the cars. There are deals for Toyota, Kia, Volkswagen, Honda, Chevrolet, Nissan, and Hyundai. Specific cars from these manufacturers are all offered for a low monthly price, ranging from $159-$239 and some are offering 0% financing.
http://autos.yahoo.com/news/top-new-car-lease-and-finance-deals-for-april.html?page=2
Do you think that this is the best way for a car manufacturer to sell their products? Would you be willing to purchase one of these cars for this sale? What do you think the car companies could do to get more customers to purchase their cars?
Tuesday, April 3, 2012
In Response to Kristen's Post
Kristen's Question: Have you ever been influenced to purchase something, or to go see a movie because of social media marketing? Do you think it is a productive way of marketing now a days?
Personally, I think that social media is a fantastic way for marketers to get their product noticed. Almost everyone has a Facebook now, ranging from middle-schoolers to middle-aged people trying to connect with people from their pasts. Seeing ads and statuses on Facebook about products can influence others to try the product or to see the movie, etc.
I know that I would be more inclined to go see a movie or to buy a product if I saw it on Facebook. The ads show you how many of your friends have liked the product and knowing that your friends are indulging in the product makes you more willing to partake in it as well.
I had heard about the Hunger Games, the topic of Kristen's post, from friends and my siblings, but I didn't think much of it until I saw it explode on Facebook. When all of my Facebook friends had statuses about the Hunger Games, I was intrigued and wanted to see what all the hype was about. I hadn't planned on seeing the movie until I saw the hype on Facebook. I think social media is the best way for marketers to get their products known, especially when we can fast forward through commercials, or we mute the TV or change the channel when the commercials come on. This is the best way for companies to get themselves known.
If you were a company trying to get recognized, do you think you would be more apt to use print advertising and billboards, or would you be more likely to make ads for Facebook and Twitter?
Personally, I think that social media is a fantastic way for marketers to get their product noticed. Almost everyone has a Facebook now, ranging from middle-schoolers to middle-aged people trying to connect with people from their pasts. Seeing ads and statuses on Facebook about products can influence others to try the product or to see the movie, etc.
I know that I would be more inclined to go see a movie or to buy a product if I saw it on Facebook. The ads show you how many of your friends have liked the product and knowing that your friends are indulging in the product makes you more willing to partake in it as well.
I had heard about the Hunger Games, the topic of Kristen's post, from friends and my siblings, but I didn't think much of it until I saw it explode on Facebook. When all of my Facebook friends had statuses about the Hunger Games, I was intrigued and wanted to see what all the hype was about. I hadn't planned on seeing the movie until I saw the hype on Facebook. I think social media is the best way for marketers to get their products known, especially when we can fast forward through commercials, or we mute the TV or change the channel when the commercials come on. This is the best way for companies to get themselves known.
If you were a company trying to get recognized, do you think you would be more apt to use print advertising and billboards, or would you be more likely to make ads for Facebook and Twitter?
Gas Prices
Gas prices have been fluctuating for as long as anyone can remember. Our parents remember them being in the $1 range, whereas we remember them being around $3.50-$4. The one time that gas hit over $4 was in 2008, when they peaked and then declined. But, unfortunately, gas prices are expected to rise to that $4 mark again this month. They have been raising a fraction of a price each day and this could have a major effect on the amount of driving people will be doing.
In class, we talked about how gas prices are inelastic because no matter how much it is, people still tend to buy gasoline in order to fill their car and get where they need to be. Some are saying they think that people will start to consolidate their errands and car pool more often if the gas prices get out of control.
David E. Parsons of AAA Carolinas said "We expect prices to increase into May,” said Parsons. “The good news is that in the past two years we saw a stabilization or reduction of gas prices once we get into the summer months. We hope that scenario repeats itself again this year.”
If this trend continues, what kinds of things will you do in order to cut back on the money you spend weekly on gas? Do you think that people will change their lifestyles to save money?
In class, we talked about how gas prices are inelastic because no matter how much it is, people still tend to buy gasoline in order to fill their car and get where they need to be. Some are saying they think that people will start to consolidate their errands and car pool more often if the gas prices get out of control.
David E. Parsons of AAA Carolinas said "We expect prices to increase into May,” said Parsons. “The good news is that in the past two years we saw a stabilization or reduction of gas prices once we get into the summer months. We hope that scenario repeats itself again this year.”
If this trend continues, what kinds of things will you do in order to cut back on the money you spend weekly on gas? Do you think that people will change their lifestyles to save money?
Tuesday, March 27, 2012
In Response to Christine's Post
Christine's Question: What do you think will happen to Android products when they cant offer great app's for their consumers?
For me, an Android owner, I have no problem with the apps I am offered on my phone, but I know many people buy their phones specifically for the app options. Therefore, if Android does not step to the same level as say, the iPhone, they will start to become obsolete and eventually, they will not be anyone's first choice for phones.
I think that Android phones need to offer the same applications as other smart phones if they want to stay in the competition. As stated in Christine's blog, developers are using their time to make apps for iPhones and I think that they need to focus on making the same or similar apps for Androids as well. If the developers only focus on the iPhone, the Android will not be purchased quite as much as it is now.
How do you think Android could market their product to increase sales, even without the same apps as the iPhone?
For me, an Android owner, I have no problem with the apps I am offered on my phone, but I know many people buy their phones specifically for the app options. Therefore, if Android does not step to the same level as say, the iPhone, they will start to become obsolete and eventually, they will not be anyone's first choice for phones.
I think that Android phones need to offer the same applications as other smart phones if they want to stay in the competition. As stated in Christine's blog, developers are using their time to make apps for iPhones and I think that they need to focus on making the same or similar apps for Androids as well. If the developers only focus on the iPhone, the Android will not be purchased quite as much as it is now.
How do you think Android could market their product to increase sales, even without the same apps as the iPhone?
Groupon
Groupon is a company that allows people to find coupons for local businesses in cities all over the United States. They put coupons online and email them to their clients, then the clients can share them with friends. They sell memberships for clients that will enable them to get the emails and the coupons with the deals offered by the website. They also sell each individual deal for a separate cost. They guarantee satisfaction in their deals, offering the "Groupon Promise":
Groupon is a "deal of the day' website that gives their users discounted gift certificates to shops in 48 countries. They were made to give people a chance to try something new in their town, to venture out and not follow the same routine or go to the same places all the time.
Groupon puts its ads on Facebook and Twitter and emails their deals out to clients, as well as using the social media outlets.
How else do you think Groupon should advertise in order to get their name out there more?
Wednesday, March 21, 2012
Connecticut Science Center
Saint Patrick's Day is known for it's extravagant parades, rowdiness and Irish food and drink. The Connecticut Science Center decided to use the parades to their advantage, making a huge dinosaur that roared and had informational banners on it. They knew that this parade drew nearly 75,000 people and they knew that this would be a good way to get their business known.
The Connecticut Science Center is approaching its third year anniversary and they used this parade to get out their mission of having a hands-on museum which saved people from traveling to New York or Boston to see this type of interactive museum. The banners featured information about the museum, including a picture of the distinctive building. The museum plans to use these banners on their building, in order to reuse them instead of getting rid of them.
Can you think of another company that has advertised in a unique way? Can you think of any other marketing tools the museum could use to get their name out?
The Connecticut Science Center is approaching its third year anniversary and they used this parade to get out their mission of having a hands-on museum which saved people from traveling to New York or Boston to see this type of interactive museum. The banners featured information about the museum, including a picture of the distinctive building. The museum plans to use these banners on their building, in order to reuse them instead of getting rid of them.
Can you think of another company that has advertised in a unique way? Can you think of any other marketing tools the museum could use to get their name out?
In Response to Nichole's Post
Nichole's Question: How successful do you think are marketers by marketing through film?
I believe that marketers are very successful in using their marketing in films. It definitely helps the marketers get their product out there, especially now a days when there are things such as TIVO, Hulu and Netflix, where we can watch television shows without having to see commercials. Therefore, embedding marketing into films and television shows helps them to give attention to their product in a different way than in commercials.
They made a movie based on this concept, which featured Jim Carrey, called The Truman Show. This movie shows that when marketing is included in a TV show or movie, people are more willing to buy it. The movie is based on the idea that Jim Carrey's whole life had been filmed for a TV show, which he didn't know about. It is a television show that markets different products, as you can see in the following clip:
This show helped the people in the world to decide what products to buy, as it tends to do when other celebrities in movies or television market products to us. Everyone wants to be like their favorite celebrity and this causes them to buy products they may not normally buy because their favorite celeb did.
Can you think of any products you may have purchased because you idolized the spokesperson? Can you think of a specific movie or television show that had mass amounts of onscreen marketing in it?
Friday, March 9, 2012
In Response to Christine's Post
Christine's Question: Do you think the directors made this controversial ad to increase recognition and buzz over the premier? Is this an example of marketing gone too far?
On Christine's blog this week, she posted the following link and asked the question listed above.
http://www.youtube.com/watch?v=WYVPrP4AXQo
I watched this ad and I don't believe that it is supposed to be reflecting 9/11, as the article stated. This ad does show a man falling, but I don't think it is supposed to be reminiscent of the dark period of the 2000's. I think that Mad Men made the ad in a way that they think will interest their viewers to watch the show, not to become a controversy or insult anyone.
There are plenty of ads that have gone too far with their marketing, but I don't think that this is one of them. I think that this ad just has something to do with the plot of the show, not with the history of the United States.
Can you think of an company/ad that has gone way too far?
On Christine's blog this week, she posted the following link and asked the question listed above.
http://www.youtube.com/watch?v=WYVPrP4AXQo
I watched this ad and I don't believe that it is supposed to be reflecting 9/11, as the article stated. This ad does show a man falling, but I don't think it is supposed to be reminiscent of the dark period of the 2000's. I think that Mad Men made the ad in a way that they think will interest their viewers to watch the show, not to become a controversy or insult anyone.
There are plenty of ads that have gone too far with their marketing, but I don't think that this is one of them. I think that this ad just has something to do with the plot of the show, not with the history of the United States.
Can you think of an company/ad that has gone way too far?
Facebook: Is It Sexualizing Young Girls?
In a recent Yahoo! news story, the author, Lylah Alphonse, poses the question, "is Facebook sexualizing young girls?" The article goes on to talk about younger, middle school age girls, Grace, Jordan, and Lily, who talk about how getting "likes" on Facebook mark a person's popularity in their schools. This causes them to only video chat when they look perfect or wearing skimpy outfits while taking pictures for Facebook.
The role models these girls look up to, like Miley Cyrus, have gone from clean and innocent to sexy and skimpy. This makes the girls feel as though they need to look inappropriate in order for people to like them. The more Facebook "likes", they believe, the more people actually like them.
Do you think that Facebook is appropriate for girls in middle school or should it be limited to a certain age?
The role models these girls look up to, like Miley Cyrus, have gone from clean and innocent to sexy and skimpy. This makes the girls feel as though they need to look inappropriate in order for people to like them. The more Facebook "likes", they believe, the more people actually like them.
Do you think that Facebook is appropriate for girls in middle school or should it be limited to a certain age?
Wednesday, February 29, 2012
In Response to Maggie
Maggie's Question: People think that the money they earn is all worth it at the end of the day, but is it really?? Why do people work at jobs they hate??
Maggie posed this question on her blog this week after writing an article about bosses taking advantage of their employees. I have been in the work force for the last six years and I have dealt with many different types of employers. Working is important, especially in our world, where the economy is a roller coaster ride and we never know when it will dip and jobs will be unavailable. I think that people who have a job need to keep that job until they find another one if they want to support themselves. I know that some jobs may make people unhappy, and if you are so unhappy that you are depressed all the time, then by all means, you should quit. But if you are just unhappy as in you don't like doing the menial tasks you do, you should hold onto your job and search for another at the same time.
I think that the economy and the uneasiness about the job market is the reason people stay at the jobs they hate. They need to support themselves or their families and they feel like their unhappiness is worth the money they receive in order to do this.
What do you think people who hate their jobs, but need to keep it, can do to improve their work experience?
Apple's Market Value
Apple is well known for selling iPod's, iPad's and Macs. Recently, they have become well known in the marketing industry when their market value hit the $500 billion mark. Not many companies have ventured towards this mark and those who have reached it tend not to stay in the $500 billion range. Shares for Apple now cost $544.17, which is up 1.6% from its previous price.
Apple is one of only six U.S. companies that has reached this phenomenal milestone, alongside Exxon Mobil, now worth $411 billion, and Microsoft, their biggest competitor, now only worth $267 billion. Apple reached this bar because of their extreme sales and profits, and their worth is 15 times what their profit was last year.
What do you think other companies, such as Microsoft, would need to do in order to compete with Apple?
Source: http://www.washingtonpost.com/business/technology/apple-market-value-hits-500-billion-where-few-have-gone-and-none-have-stayed/2012/02/29/gIQABzs8hR_story.html
Apple is one of only six U.S. companies that has reached this phenomenal milestone, alongside Exxon Mobil, now worth $411 billion, and Microsoft, their biggest competitor, now only worth $267 billion. Apple reached this bar because of their extreme sales and profits, and their worth is 15 times what their profit was last year.
What do you think other companies, such as Microsoft, would need to do in order to compete with Apple?
Source: http://www.washingtonpost.com/business/technology/apple-market-value-hits-500-billion-where-few-have-gone-and-none-have-stayed/2012/02/29/gIQABzs8hR_story.html
Sunday, February 26, 2012
In Response to Johnson's Post
Questions: Should John smith sell the names? (Be sure to answer the poll to the left of this post.) Also, Does the AMA Statement of Ethics address this issue? Go to the AMA website (American Marketing Association) and look at their Statement of Ethics. What in the Statement relates to John Smith's dilemma?
I do not think that John Smith should sell the names because that is going against the privacy of those who took the survey. The American Marketing Association addresses that companies need to foster trust with their consumers, and avoid discrepancies in the delivery of distribution. This means that if John Smith was to sell the names to the car dealer, he would be breaking the basic code of ethics that each company needs to follow.
Though it will be hard for John Smith to have to lay off employees due to the lack of money, selling the names is not a good way to make money for the firm.
What ways do you think John Smith could raise money to keep his employees?
I do not think that John Smith should sell the names because that is going against the privacy of those who took the survey. The American Marketing Association addresses that companies need to foster trust with their consumers, and avoid discrepancies in the delivery of distribution. This means that if John Smith was to sell the names to the car dealer, he would be breaking the basic code of ethics that each company needs to follow.
Though it will be hard for John Smith to have to lay off employees due to the lack of money, selling the names is not a good way to make money for the firm.
What ways do you think John Smith could raise money to keep his employees?
Wednesday, February 22, 2012
In Response to Lyndzi's Blog
Flash mobs have become less popular today, why do you think that is? Do you think a flash mob is a good marketing technique?
In Lyndzi's blog this week, she asked the question above about flash mobs. Personally, I don't think that flash mobs have become less popular, because they have only been around since 2003 and not many people used them to begin with. Nowadays, flash mobs are trying to become more successful. They have been used in movies such as Friends with Benefits, and there is even a TV show focused on flash mobs, Mobbed.
Mobbed is a show in which people create a once-in-a-lifetime event through a choreographed dance. The people who appear on the show tend to have a secret they want to tell their friends or family, and with host Howie Mendel, they present the secret in a different and unique way.
I think that flash mobs are an awesome marketing tool. My friends and I have always wanted to see a flash mob and I think if I saw one, I would be more inclined to buy whatever they were marketing.
In Lyndzi's blog this week, she asked the question above about flash mobs. Personally, I don't think that flash mobs have become less popular, because they have only been around since 2003 and not many people used them to begin with. Nowadays, flash mobs are trying to become more successful. They have been used in movies such as Friends with Benefits, and there is even a TV show focused on flash mobs, Mobbed.
Mobbed is a show in which people create a once-in-a-lifetime event through a choreographed dance. The people who appear on the show tend to have a secret they want to tell their friends or family, and with host Howie Mendel, they present the secret in a different and unique way.
I think that flash mobs are an awesome marketing tool. My friends and I have always wanted to see a flash mob and I think if I saw one, I would be more inclined to buy whatever they were marketing.
General Mills
This week in class, we have learned a lot about ethics in companies and what a companies social responsibility is. I decided to look into the most ethical companies in 2011 and found out that every year, a list comes out of the most ethical companies of that year.
General Mills has been on that list for many years, including 2008, 2009 and most recently, 2011. General Mills is in the food/beverage industry, and make food items from cereal to Pillsbury cookies to yogurt to vegetables. They operate brands such as Bisquick, Green Giant and Haagen-Daz. General Mills has thirteen main goals, as outlined in their "Champions Code of Conduct":
http://www.generalmills.com/~/media/Files/COC_English_GMI_site.ashx
They work to make good relationships with consumers, to treat their employees well and help their communities. "For General Mills, high ethical standards are not something new. It is who we are" (Ken Powell, CEO).
What companies can you think of that need to improve their ethical standards?
General Mills has been on that list for many years, including 2008, 2009 and most recently, 2011. General Mills is in the food/beverage industry, and make food items from cereal to Pillsbury cookies to yogurt to vegetables. They operate brands such as Bisquick, Green Giant and Haagen-Daz. General Mills has thirteen main goals, as outlined in their "Champions Code of Conduct":
http://www.generalmills.com/~/media/Files/COC_English_GMI_site.ashx
They work to make good relationships with consumers, to treat their employees well and help their communities. "For General Mills, high ethical standards are not something new. It is who we are" (Ken Powell, CEO).
What companies can you think of that need to improve their ethical standards?
Wednesday, February 15, 2012
In Response to Kristen
In Kristen's blog this week, she talked about the sponsored stories on Facebook and posed this question: Have you noticed these new types of advertising on Facebook? Would you be more likely to react to an advertisement and use a product or go to a place that you know your friends have been to?
The sponsored stories on Facebook can be something your friends have visited or it could be linked to the items you've "liked" or "followed" on Facebook. I notice these ads every time I go on Facebook because it is usually a bright ad that grabs your attention. I almost always get an ad for shoes or a clothing store and I see these ads constantly on my Facebook and any other website I go onto. These ads can be things your friends have liked, which can sometimes sway my opinion to like them as well, but I tend to pay less attention to them, and sometimes I ignore them completely if it is a friend I don't tend to agree with on items.
These ads are helpful for the companies using them because people like to know the opinions of their friends before they purchase something and having an ad that your friend has "liked" helps to sway you to purchase the product.
Do you think that there are other ways for the ads to catch your attention than to have your friends opinions linked to them?
The sponsored stories on Facebook can be something your friends have visited or it could be linked to the items you've "liked" or "followed" on Facebook. I notice these ads every time I go on Facebook because it is usually a bright ad that grabs your attention. I almost always get an ad for shoes or a clothing store and I see these ads constantly on my Facebook and any other website I go onto. These ads can be things your friends have liked, which can sometimes sway my opinion to like them as well, but I tend to pay less attention to them, and sometimes I ignore them completely if it is a friend I don't tend to agree with on items.
These ads are helpful for the companies using them because people like to know the opinions of their friends before they purchase something and having an ad that your friend has "liked" helps to sway you to purchase the product.
Do you think that there are other ways for the ads to catch your attention than to have your friends opinions linked to them?
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