Amidst claims by research consultancy firm Forrester that Facebook is losing steam, advertising expert Perry Marshall counters by confidently stating that the social networking giant will triple its revenues in two years.
Marshall says, “Facebook is the only company that is monetizing mobile advertising effectively. Forrester is surveying the wrong people and is 150% wrong about Facebook.”
This was in response to Forrester Research’s open letter to Mark Zuckerberg on the conclusion that “Facebook creates less business value than any other digital marketing opportunity … Don’t dedicate a paid ad budget for Facebook.”
“At the beginning of 2013, I would have entirely agreed with Forrester. I was vocal about my disappointment with Facebook. But Facebook has made dramatic improvements to its advertising platform. Marketers are enjoying a bonanza with Facebook advertising, in many cases getting lower cost per new customer than any other online ad platform, including Google AdWords, banner ad networks and email.” says Marshall.
He continues: “It’s no secret, large companies are generally the last to embrace innovative advertising models and they’re the last people you should ask. Facebook has dramatically improved their targeting. In particular, Facebook ‘Likes and Interests’ are now combined with Big Data that accurately indicates interests in hundreds of product categories, and accurate demographic and psychographic information. Facebook is also advertising in the news feed of mobile phones, and those ads work very well.
“People are paranoid about privacy but marketers aren’t trying to invade anyone’s privacy. All we care about is not wasting our money by advertising to disinterested people.
“Facebook has caught the scent. The next two years will be tremendous.”
Taking an objective stance on the networking giant, the corroborative data that has been churned in recent months show a continuous decline in youth engagement on the platform. This is an overall dip which has yet to see any sign towards recovery. Engagement statistics tell a clearer picture as they mean actual usage which translates to actual views for advertisers. And at the moment a conjecture that revenues will increase by such an extent may be a little premature.
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