When speed stuns...is there any stopping Facebook?

Feb 1, 2016 11:35:18 AM

Is there any stopping Facebook?

You don’t have to look further than your own news feed to see that mobile ads are absolutely booming! Everyone is jumping on the paid ad services as reduced CPCs (cost per click) and big ROI are being talked about more & more. This week Facebook have reported that shares have surged a massive 13% and are actually the only major technology stock to be in the green!

Facebook is in one of the strongest position it ever has been, with its MAU (Monthly Active Users) up MOM (month on month) - currently at 1.6billion (!) and user loyalty being higher than ever (rumour has it Facebook were purposely making the app crash to test this!) The tech giant has taken a fast forward step into monetization. Back in Q1 2012, Facebook were earning a tiny $0.32 per user however it is now earning just shy of 4x that! 

Furthermore, with the integration of Instagram into Facebook Adverts Manager this has increased the total MAU by a massive 400million – yes some of these will be a crossover of users but the way you communicate with users through Instagram is very different to Facebook; so there is another chance for a click/ conversion/ any desired action. 

This year seems to have been a massive turning point for digital marketers. Many have said Google and Bing have been dominated by the big players for a too long now and it has been difficult for small to mid companies to get a slice of the pie. The big companies can justify the extra CPC as they can bank on the LTV (life time value) of any prospect buyer in a more confident manner. Social Media has an edge; theoretically it should have more information on any prospect customer which in turn allows companies to create more targeted ad which in turn should level the playing field (somewhat) and overall will bring the CPC down and the ROI up! 

What do you think?

Share your thoughts on this post - whether you agree, disagree or have your own insight to share, we want to hear from you!


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