Quantcast

Post-IPO, Five Times As Many Advertisers Say They’re Pulling Money Out Of Facebook

Get the WebProNews Newsletter:
Post-IPO, Five Times As Many Advertisers Say They’re Pulling Money Out Of Facebook
[ Business]

Although Facebook’s stock price has slowly crept back over $31, its low point last month of $25.52 (after opening at $38) reflected a declining confidence in Facebook’s ability to monetize. And after General Motors publicly yanked all of its ad spending from Facebook, people really started to talk about whether or not it was even worth it for brands to advertise on the site.

Despite some reports suggesting that Facebook’s mobile revenues are looking up, 33across has some pretty unfortunate news for Facebook today.

According to 33across, advertisers are beginning to focus more on the rest of the web and less on Facebook.

Their “Advertiser and Agency Survey” gauged the climate within a group of 2200 brand marketers and agency execs. What they found was that 71% of those surveyed said that they were focusing 80% of their attention in places not named Facebook. In March, the same survey showed that only 58% of the marketers were putting their eggs far away from the Facebook basket.

In March, an albeit small but present 4% said they were putting 80% of their effort in Facebook advertising. Now, that number has dropped to 0%. Only 7% of respondents are putting the majority of their bucks into Facebook ads.

“What was particularly surprising to me was the dramatic shift in advertiser and agency attitudes towards Facebook after the IPO,” said Allie Kline, CMO of 33Across. “Facebook’s future greatly depends on advertiser spend – on both the web and mobile devices – and this survey indicates that they have some work to do to restore advertiser confidence in their Facebook investments.”

But when asked about future spending, opinions have changed drastically since Facebook’s IPO. More than five times the number of respondents pre-IPO now say that they were planning on “decreasing their Facebook spend.”

It looks to be all about confidence. Facebook has to prove to these marketers that the network is still worth their time. Getting GM to come back to the table would be a huge score for Facebook, as a major U.S. brand would be seen as feeling comfortable placing millions of their dollars into Facebook.

Post-IPO, Five Times As Many Advertisers Say They’re Pulling Money Out Of Facebook
Top Rated White Papers and Resources
  • http://www.ratingz.net Bob Nicholson

    My company tried FaceBook ads, and found that the response was not nearly as good as our Google and Bing ads. If FaceBook want to draw advertisers, they need to lower ad rates. Otherwise, advertising on FaceBook is a waste of money. It’s just that simple.

  • http://www.netprofitmarketing.com Jared

    I think it all started when bigger companies like GM said they were pulling their ads because they weren’t working.

  • http://Mabuzi.com Kevin

    We ran a Google, Linked In and FB ads concurrently and no guess which platform had the lowest ROI.

    So we have a team meeting to discuss future campaigns and none, yes none of the team have ever clicked on a FB ad ever. So one must ask what type of product can be sold on this platform considering that purchasing is the last thing on ones mind when one logs into FB platform?

    • http://cass-hacks.com Craig

      It’s a great place to advertize if you are advertizing something like ‘Cow Clicker’. ;-)

      Seriously though, it *may* be useful for something nebulous like ‘building brand recognition’ but any ROI from that is pretty hard to measure.

      If money is tight ROI is more likely to be an important metric.

    • f bone

      Google search is where people are actively searching for the product – so your highest ROI may very well be on this source.

  • http://www.blindcatrescue.com alana miller

    I think that we will all advertise again on FB when all of our viewers have the opportunity to see all of our posts.

    • http://decantery.com Chris Dornfeld

      FB should not be compared to Google as a advertising platform because the behavior and audience interaction is very different. We have found it very useful for certain advertising needs, but not most. FB real challenge is not monetization but a shrinking core audience of key influencers.

  • http://tribalstylemarketing.com/blog tribalstylemarketing

    Use Facebook for the 3C’s…Content, Customer Service, & Connections. That’s it. Anything else would be uncivilized.

  • http://www.tmprod.com Dwight Zahringer

    Social is not going to go the distance with direct ROI. FB was overvalued from the start.