This week’s newsletter includes two articles that seemingly contradict each other: First, a great article on the growth of digital marketing over the past two years (up to 71% and growing!). Second, the unfortunate layoff of 11,000 META (Facebook) employees. While both are true, the rationale behind each is different.
Let’s first tackle the continued growth in “digital” marketing strategy. Tactics such as social, search, display, streaming audio, and CTV/OTT are available on more platforms than ever and will continue to evolve. This includes every device we touch: phones, computers/laptops, personal devices (Alexa, Google Home), TVs, billboards, and yes even your car as delivery methods. Media companies are offering more digital media than ever and will continue to do so as technology becomes even that much “smarter.”
So, what happened with Facebook, and why the layoffs? As someone who has seen the rise and fall of many “platforms,” META is another example of a media company distracted by the shiny new objects CNBC-Meta plans to lose even more money building the metaverse while its ads business shrinks vs reinvesting into their products. For years, META relied too heavily on invasive advertising technologies and as a result, restrictions from Apple (Apple’s iOS Updates Hurts Facebook Ad Business) and legislatures everywhere are limiting their targeting abilities further.
What does this mean for your media investments? Our recommendation is to keep a close watch on the performance of each media and always be open to testing. Ad tech is evolving faster than ever.
Should you stop advertising on Facebook? Short answer is no! Facebook still works but now requires more monitoring of your campaigns. Small tweaks and FB/Instagram is still a powerful platform.
Have questions? Feel free to reach out, we love talking tech!