Marketers to Re-​evaluate Facebook Ad Spending in 2018

BY Kathy Crosett
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Facebook is starting out 2018 with some big changes. Now that the social media giant has local advertisers hooked on the power of ads placed on its site, the company has decided to emphasize community. This shift has implications for your clients.

In January, media analyst and guru at Pivotal Research, Brian Wieser put a Sell rating on Facebook stock. Other analysts believe Facebook will likely experience declining growth rates in its advertising business. In addition, consumers have been slowly cutting back on their Facebook addiction. Part of the reason they’re spending less time on the site may be linked to a change in the videos the company is showing.

Facebook’s announced changes to its News Feed translates to a reduced emphasis on brand and publisher content. The move is a bold one for a company that accounts for 20% of all digital ad revenue. While the new initiative might mean a transition to higher quality content on Facebook, ad prices will likely go up. Marketers should be asking themselves how much they are willing to pay. Metrics indicate that the average price per Facebook ad in Q4 2017 was 43% higher than in the previous period, as impressions grew by only 4%.

In addition, a StreetFightMag​.com report notes that Facebook’s new local news and events channel, being tested in six cities, bears watching. The feature is being touted as local marketer friendly. Analysts claim the features of the tool are being siloed. That siloing won’t make it easy for your clients to reach the audiences they want to connect with.

Currently, local small businesses count heavily on Facebook. The results of a Street Fight Enterprise survey show that 41% of SMBs say their free Facebook site is their most effective social media marketing tool. Similarly, 39% say the same about paid Facebook advertising.

In 2018, your clients may suddenly find themselves paying a lot more for Facebook ads. If those ads don’t resonate with the intended audiences, you may have an opportunity to sell more digital advertising.