In one of our last post “Why Google is Getting Extremely Desperate for Google Plus Success?” we mentioned an important reason for the ongoing tussle between the two giants is fight for advertisers.
We mentioned “Google’s holy grail in revenue is its online advertising market share. So far Google has done a terrific job in corning the maximum share within the industry. However, with the growing clout of facebook, its kingdom has begun to feel the tremors. And there lies the urgency, the desperation to make it work.”
We also noted an additional point that “Its not that facebook will become a runaway leader in the world of online advertising. It is way behind right now and has a conceptual flaw within. People who throng to facebook, do it to get connected and not to shop. This point was highlighted in our last post - Can facebook become the next e commerce monster? Those who search are more likely to buy than those who are using a platform to get social.”
Wall Street Journal’s latest story confirms our observation. Advertisers (despite of getting the best of targeting) are questioning the profitability factor and their reliance on facebook as an advertisement channel. With each passing day the doubts are growing bigger and bigger.
The company recently reported its first-quarter ad revenue which was down 7.5% from the previous three months. This implies that, advertisers are getting disillusioned with all the tall claims of best ROI and so on. Experts point out - Facebook offers targeting not tracking (the google way). Its "Sponsored Stories" feature too hasn’t attracted much of success.
On the other hand facebook evangelists claims that “Agencies are used to conversions and clicks, not social sharing or PTAT - people talking about things - as metrics of success” and that is the reason why they aren’t able to understand facebook as a social platform for advertising. Critics claim that the metrics haven’t changed , on the contrary, facebook is using its scale to dictate terms.
It’s not that everyone is unhappy. Big brands like ford claims it has tasted success with facebook advertisements. Research firm eMarketer released a study showing 84% of executives it polled said that social media campaigns had boosted the effectiveness of sales and marketing efforts. Yet eMarketer also said that "while measuring followers and Facebook 'likes' provides marketers with a hard number, no one yet knows how those numbers translate into a quantifiable return for brands."
In short, advertisers can use facebook for business to spread brand awareness and enhance consumer engagement. However, to drive direct sales, they will have to wait. This becomes a lip smacking proposition for Google which wants to retain its Numero Uno crown for online advertisement Platform amidst growing competition.
We mentioned “Google’s holy grail in revenue is its online advertising market share. So far Google has done a terrific job in corning the maximum share within the industry. However, with the growing clout of facebook, its kingdom has begun to feel the tremors. And there lies the urgency, the desperation to make it work.”
We also noted an additional point that “Its not that facebook will become a runaway leader in the world of online advertising. It is way behind right now and has a conceptual flaw within. People who throng to facebook, do it to get connected and not to shop. This point was highlighted in our last post - Can facebook become the next e commerce monster? Those who search are more likely to buy than those who are using a platform to get social.”
Wall Street Journal’s latest story confirms our observation. Advertisers (despite of getting the best of targeting) are questioning the profitability factor and their reliance on facebook as an advertisement channel. With each passing day the doubts are growing bigger and bigger.
On the other hand facebook evangelists claims that “Agencies are used to conversions and clicks, not social sharing or PTAT - people talking about things - as metrics of success” and that is the reason why they aren’t able to understand facebook as a social platform for advertising. Critics claim that the metrics haven’t changed , on the contrary, facebook is using its scale to dictate terms.
It’s not that everyone is unhappy. Big brands like ford claims it has tasted success with facebook advertisements. Research firm eMarketer released a study showing 84% of executives it polled said that social media campaigns had boosted the effectiveness of sales and marketing efforts. Yet eMarketer also said that "while measuring followers and Facebook 'likes' provides marketers with a hard number, no one yet knows how those numbers translate into a quantifiable return for brands."
In short, advertisers can use facebook for business to spread brand awareness and enhance consumer engagement. However, to drive direct sales, they will have to wait. This becomes a lip smacking proposition for Google which wants to retain its Numero Uno crown for online advertisement Platform amidst growing competition.
Also, for an effective Social Media campaign that actually works,
This is a great story. Many SEO's and advertisers has invested an significant amount of money into Facebook ads. Now, the truth is is unfolding that Facebook doesn't offer the best ROI for online advertising. However, it's presence on the Internet remains the champion of Social Networking.
ReplyDeleteTerrible logic! FaceBook was down 1st NON-CHRSITAMAS quarter? CHRISTMAS? Shouldn't that be exactly what we expect to happen?
ReplyDeleteNope. You failed to see the logic. The problem with the facebook revenues wasn't a NON-CHRSITAMAS quarter.. it was and will be because, more and more people who are using facebook are going mobile and facebook hasn't figured out a way to monetize this segment. This fact has been highlighted in the S1 Clause they have filed for the IPO.
ReplyDelete