Facebook’s Potential Decreasing Success in Digital Advertising

As technology becomes more advanced, people around the world become increasingly reliant on the Internet, smartphones, and computers. The advent of smartphones and their wildfire-like proliferation across consumers around the world furthers corporations’ technological success. Social media and Internet giants such as Google, Yahoo, and Facebook have profited significantly off consumers relying on social media platforms and popular Internet pages. How? Through digital advertising, including pay-per-click and video advertisements, search engine optimization, and display promotions.

Facebook is leading the market-wide use of digital advertising, having increased performance of these promos year after year. Just several days ago, the Harvard-dropout-founded social media platform announced it reaching the unprecedented milestone of 2 billion unique users around the world. However, Facebook’s digital advertising is expected to sharply come to a halt.

Three popular digital agencies, including Wpromote, iCrossing, and an unnamed organization, have reported their clients’ decreased spending on Facebook’s digital ads. Wpromote reported that last year, Facebook’s digital ad spending shot upwards 154%. This year, the social media giant’s online promotional expenditures will raise a mere 51%; not exactly a dollar value decrease, but an unarguable slow in advertorial activity.

The unnamed digital agency, who did allow reporters to identify it being based in New York, stated that clients have not increased spending overall on Facebook ads. iCrossing’s predictions are in between both of these organizations, expecting spending to trend upwards of only 40%, in comparison with last year’s 48% rise. Pay-per-click advertising costs on WPromote’s top-notch campaigns have more than halved in value as the top digital agency hopes to retain existing patrons and draw in new customers.

Companies, corporations, and businesses traditionally relying on Facebook to promote their offerings are cutting back, hoping to better evaluate the value of advertising on Facebook. Groups are also slated to spend more of their precious digital advertising budgets on other Internet sites, including social media competitors, search engines, and news agencies, among others.

Despite meaningful expectations that Facebook’s digital advertising success will soon decrease, the blue- and white-colored social platform’s representatives failed to comment on such findings. The upcoming earnings report for the social media giant is expected to be released in less than a month, on Wednesday, July 26th.

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Dil Bole Oberoi