Our last blog on social media focused on emerging Facebook competition. News on Facebook, the third largest community in the world, has centered on disappointing news and suggestions of “problems” ahead. Articles touting “several” millions of duplicate memberships on Facebook and counting are an issue to some business oriented media. First, “several” is an undefined amount, and secondly, a few millions in a billion are not going to affect the value of this medium of unprecedented size.
Never in my many years of studying and planning media buys did I think that a potential “billion” reach could ever be possible. Can we even imagine the value to advertisers – the ability to target massive consumer segments of all ethnicities and lifestyles globally! As soon as we marketers learn how to talk to these social media participants without turning them off, both brand building and direct response will be exponentially more effective.
Going back to the headline, why is the value of Facebook stock 54% lower today than its IPO launch date? We have heard the book entitled Irrational Exuberance being mentioned during the peak value of Facebook. Will we as marketers and media professionals be influenced by dismal stock market numbers when making media decisions? Well, General Motors was quoted to be leaving Facebook because of a lack of results, seriously? This is similar to passing on the opportunity to advertise in the “Super Bowl” when given the chance to market directly to your core consumer segment in this the most valuable media property in television! Was this decision influenced by Wall Street?
The evidence says that the smartest people in the room are “NOT” from Wall Street but from marketing departments and ad agencies. While the news from “the street” points to Facebook (and competitors) “inability” to monetize mobile and some of their key properties, there is news that Facebook revenues are up by 32% this year. This speaks to the savvy of marketers and Wall Street’s lack thereof.
Jafet M Ramírez