Capitalism.
Some say it is the root of all evil, others that it is what helps a business grow and flourish. I’m not here to tell you what the system does, but I will say how facebook has changed since it’s IPO.
Whether you are a consistent social media user or just using once a month, you’ve undoubtedly noticed that their are more ads across your newsfeed. The algorithm is changing, and it is not changing in favor of the users. In a free service the user is what is being sold, and the buyer are the business pages. Posts are showing up less frequently on newsfeeds and facebook is pushing it’s sponsored posts ability to increase profits.
On a more positive note, these sponsored posts are a fantastic way to reach like minded users and find a targeted group to build your following. For example, one of my clients is a printing company near a large ivy league university. Every year the graduating seniors must bind their thesis and turn it in to the university. With the social ads it is possible to target only graduating seniors at that particular school and do it only during the 2 month period in which they must bind the thesis. If you really wanted to get particular than you could align each ad with the students major based on when the turn in date is scheduled.
What other advertising medium can you reach out to this specific of an audience? Facebook may be headed in the direction of evil, but for a small business with minimal ad budget, it can be a gold mine. This campaign referenced gained 40+ clicks to their online order form page in the first day. That day cost them $3 in media buy. In comparison, this could have bought one single click on google adwords.
Written in entrepreneur.com:
May 2012: Facebook’s IPO debuts disastrously. The stock price opens at $42.05 but closes at $38.23. Despite the lackluster performance and some technical snafus, some 500 million shares are sold and the IPO raises $16 billion. Facebook becomes the second largest IPO in U.S. history.
December 2012: At the final bell of the year, Facebook stock closes at $26.62, a far cry from its IPO.
February 2013: The Pew Research Center releases data suggesting that users are getting tired of Facebook. Reports of “Facebook fatigue,” especially among teens, continue to surface.
May 2013: Facebook credits gains in mobile advertising for the growth of its first-quarter revenue of $1.46 billion — an increase of 38 percent compared with the same quarter last year. The company’s shares slide to around $26.
Source: http://www.entrepreneur.com/article/226688#ixzz2UDg2Hvav
Thanks for reading, more rants about facebook to come.
About Roger Tower
Digital marketing agent by day and amateur crime fighter by night. This ninja ginja writes about technology trends, social media advancements, and light commentary on our digital culture. Founder of Tower Agency, Roger can be found working hard in the office or playing hard outside.
Positivity is a virtue and there is no shortage with this young entrepreneur.
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