Last year has been difficult for Facebook, it came to light the Cambridge Analytica’s scandal that turned out into the fall of their shares in 2018, a $5 billion USD fine issued by the FTC of the United States for privacy failures, and on top of that, a reputational crisis. However, these facts do not seem to affect advertisers’ budget in Facebook.
Facebook reported an increase of 28% in advertising revenue compared to 2018, in its 2019 second quarter report, with a figure of $16 billion, of which mobile advertising represented approximately 94% of the advertising revenue in that period. But why aren’t advertisers leaving, when the social network is facing such a dark episode that brings doubt about its future?
Although a bad reputation, one of the reasons why Facebook is still important in marketing budgets, it’s because the network has more active users than any other platform with 2,271 million, according to the study Digital 2019 Global Digital Overview by WeAreSocial and Hootsuite. This report also indicates that 35% of the audiences span between 18 and 35 years old, the most active purchaser segment; a good reason to consider for brands when thinking in abandoning this network.
Does this social network have a future for companies?
“We are investing in building stronger privacy protections for everyone and on delivering new experiences for the people who use our services.” said Mark Zuckerberg, founder and CEO of Facebook in a recent statement from the company.
That is precisely the summary of which involves the redesign of Facebook, a lot of privacy for the users and reinvention of the tab groups, giving priority to these hearings by themselves have been grouped, by responding to their common interests, something that Zuckerberg is committed to offer.
The change will cause many brands to reinvent the way they advertise on Facebook, more than a nuisance, this could mean a lot of opportunities. These are new options that this company gives us and certainly are far from affecting their customers.
“Many things that Facebook does – or are done by other on the web-, many are experiments that only be applied when prove to work. If they lower the return on investment or the amount of leads or reactions to your advertising, they will invent something else. They don’t do anything that affects their revenue”. said Alberto Arebalos, CEO of MileniumGroup.
Currently, the advertising option is not available within the groups, which generates a bit of confusion but it means a great challenge for brands, which requires learning to master the new rules of the game.
Will Facebook take us to its beginnings, where organic reach used to be the most valuable? We’ll see what is down the road.