When Facebook began to monetize
their platform with advertising, skeptics expressed concerns with mixing “business
with pleasure.” The millions of avid Facebook users were spending their time
communicating with their social groups, in a personalized platform that was
free of commercial influence. Years later, Facebook has made some smart changes
to their news feed and profiles to integrate brands and products effectively
and more importantly, in a disruptive way that consumers are responding to.
According to the first annual
Social Media Intelligence report released on Monday, “which took into account
more than 131 billion Facebook ad impressions and 4.3 billion social
engagements, Facebook ads were clicked 29% more often in 2013, and the return
to investors was 58% higher than last year.” Other metrics are also more
favorable, like cost-per-click, which has proven that Facebook ads are becoming
cheaper and more effective.
Brands are responding in a huge
way. More and more companies are utilizing the platform to reach a dedicated
segment of consumers, however, this adoption curve comes with a double-edged
sword. If the social network saturates with branded content more than
user-generated original communications, the cachet and utility of the network
will be jeopardized. Facebook will have to continue to evolve and build their advertising
business while staying true to their core competencies of being a social
network.
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