Facebook has been in the news recently for a huge data scandal, and many advertisers may be wondering if the writing is on the wall for the downfall of Facebook. But recently reported Q1 reports in stock prices tell a different story. Facebook is here to stay, and is still a viable social media platform…at least for now.
What’s the deal with the Facebook data scandal?
In short, Facebook exposed personal data for roughly 87 million Facebook users to a third party research firm, Cambridge Analytica. This same firm worked for the Trump campaign. Its Vice President was Steve Bannon (who was later appointed a senior advisor to Trump once he became president). The majority of the data was from users in the United States and exposed during the 2016 presidential run. Obviously, this doesn’t look good for Facebook, and some would say they are complicit in influencing the outcome of the election. All of this lead to a ton of bad press and recent congressional hearings with Facebook founder, Mark Zuckerberg.
Can’t Nobody Hold ‘Em Down…
Despite the congressional hearings and bad press, Facebook appears to still be claiming in earnings. This week they reported Q1 2018 financial results with $11.97 billion in revenue. As a result, their stock price jumped 7% this week. Plus, Facebook still has 1.45 daily active users and 2.2 billion monthly active users, more than any other social media platform.
The reality is that Facebook continues to be a major player in the social media world as well as for online advertising. It is still the largest social network. For those 35 and over it is the most widely used social media platform. It is important to note that this demographic tends to have more expendable income and buying power so marketers should include Facebook in their marketing mix.
With that said, there are certainly changes on the horizon for Facebook. It’s speculated among some marketing experts, myself included, that Facebook will adjust their algorithms so that your news feed focuses on friends and groups. This means that companies are going to have to pay to play to gain exposure.
Unique and original content will be even more important to gain exposure. Sponsored posts, sponsored page suggestions and other Facebook ads will be a must.
Facebook Advertising & Social Media Marketing
If you have questions about Facebook advertising or social media marketing in general, or you’d like to learn more about how we can help with your social media marketing efforts, drop us a line at 910.681.0548 or send us an email. We’d love to chat!