Changes on Facebook might cost advertisers more money per lead
CONCERNS over privacy broke the internet last year. Now, Facebook will lead marketers to recalibrate their measurement of success on the platform.
Facebook Chief Executive Mark Zuckerberg recently said that the company will shift towards becoming a privacy-focused social network.
Zuckerberg’s vision is to integrate the other social media platforms that Facebook Inc. owns. He believes that the shift can be achieved by merging Facebook, Instagram, WhatsApp, and Messenger.
The end goal is to transform the current digital town square to a “digital living room” where conversations are encrypted.
Facebook does not have a good reputation for privacy-protective services but Zuckerberg is hopeful.
“We’ve repeatedly shown that we can evolve to build the services that people really want, including in private messaging and stories.”
The new pursuit of private and secure communications will be evolving its single most important revenue channel — advertising.
The platform, valued at US$490 billion, makes money from business users targeting ads to people openly sharing their data.
Above all, Facebook allows business users to zoom in on multiple variables and target ads to a specific target market.
What does it mean for Facebook business users?
Leads are as good as gold to CMOs and Facebook offers 2.7 million potential leads worldwide. It’s why Facebook advertising has become so popular with business users.
At first glance, the shift to private and secure communications look like it can hurt Facebook’s business model.
In truth, Zuckerberg is helping businesses give customers what they want and need.
End users are demanding stricter privacy-protective services and it is at the core of Facebook’s new vision.
As a result of that, business users will be able to provide a more digitally-relevant experience for its customers.
While the scale of data will be reduced, the quality of leads will be of better caliber. Therefore, CMOs can carry out their marketing campaigns and project for higher sales targets with more confidence.
In terms of cost per lead, the price will tentatively increase. However, that may not reflect the total spend required to generate the same results in marketing campaigns.
With technology constantly evolving, the marketing toolbox will continue expanding as well.
It’s vital to keep relevant to the market changes and demands. That is essentially what will sustain success for a business on the social platform.