Last week marked a historically bad day for Facebook’s parent company Meta. The company lost a staggering US$230 billion in market value after their share prices plummeted more than 26 percent overnight. Rival platforms have disrupted Facebook’s long-held monopoly as the competition to gain and retain younger users has heated up.
For small businesses that rely almost exclusively on social media advertising, the unprecedented loss is concerning. With targeted Facebook advertising becoming more difficult and expensive, the need for an omnichannel and agile marketing strategy has never been more important. Businesses who haven’t previously considered running Google Ads and developing a comprehensive SEO strategy may want to investigate the suitability of this for their business. By diversifying their advertising channels, businesses can better insulate themselves from the unpredictable changes in social media operations.
Why the Plunge
The rise of rival platforms like TikTok are challenging Facebook’s dominance as it struggles to maintain relevancy amongst the new generation of users. Last year leaked internal documents revealed that the platform was concerned about its ageing userbase. If it fails to entice new users, it risks becoming defunct, like so many other forms of technology once heralded as revolutionary and transformative.
The company has invested significantly into reels as a way of keeping pace in an environment of intensified competition. However, Meta has struggled to monetise reels effectively.
Last year also saw the company embark on a costly rebranding exercise which many criticised as a distraction from a series of scandals. Despite having invested more than $US10 billion into the creation of augmented reality experiences, Zuckerberg’s Metaverse is years away. It remains to be seen whether this long-term plan will be successful in luring back a different demographic.
What does it mean for advertisers?
It’s almost impossible for a company to maintain growth indefinitely. A period of stagnation is almost inevitable, particularly in the tech industry which is prone to constant change and disruption.
Nevertheless, Facebook’s ability to offer businesses of all sizes the ability to reach their ideal customers through detailed targeting options was what gave it an edge over other traditional media platforms. Apple’s changes are having an impact on Facebook’s ability to deliver ads effectively. That said, Facebook has developed some pretty interesting workarounds such as their Events API integration tool. The Facebook pixel remains unaffected by Apple’s changes.
So what does this mean for business? Consider diversifying how you reach and engage with new customers and audit your advertising strategy regularly. For B2B businesses LinkedIn can be an effective channel for brand awareness and lead generation. It may also be worth investing in a pay-per-click (Google Ads) or a comprehensive SEO strategy.
AD Media can provide you with an obligation-free website and digital channel health check to help you make those marketing decisions. Contact us today.