Despite Facebook's long and storied history, it may have
reached a point where its future is in doubt. The company is facing several
major challenges, including political controversy, regulatory scrutiny, and
antitrust lawsuits. This is not to mention the fact that the internet is
undergoing a secular shift and digital ads are on the rise.
Facebook has a massive trove of user data, and the company
has developed several technologies that can help advertisers target their
messages to the right people. It also has a platform that allows businesses of
all sizes to advertise. And, it has a robust reporting system that can provide
useful information to marketers.
However, the biggest challenge to Facebook is not from the
government, but from other competitors in the space. Apple and Google have been
the subject of numerous antitrust suits, and there are plenty of other
challenges on the horizon. Aside from the usual regulatory hurdles, advertisers
have to adjust to a new digital ad landscape.
One of the most notable changes is that Facebook is no
longer a direct competitor in the direct response space, thanks to Snap. While
Snap's business is still a notch below Facebook's, it demonstrates the
potential of a more integrated strategy.
Another significant change is that Apple has begun comparing
links to websites to signs in their own apps. For example, instead of
displaying ads for products you may already own, Apple will now display ads for
products you haven't yet acquired. Similarly, Apple has introduced a pop-up
window in its iPhone apps.
Facebook's marketing has improved over the years, and its latest
innovations include a chatbot to help salespeople connect with consumers, and
the ability to place ads in Reels, Stories, and even the Feed. But while these
improvements help marketers get their message to consumers, they are not a
replacement for the old fashioned one-on-one approach.
Perhaps the most important innovation of all is the ad
exchange, where Facebook can share information with other advertisers. As the
largest ad exchange in the world, Facebook has a lot of data about its users,
which it can share with other advertising platforms.
One of the best parts of the ad exchange is that it can be
used to display advertisements that are relevant to your specific demographic.
For example, you can buy a drink from an upscale bar that only serves wines
made from grapes grown in the region. In the past, you had to pay to see these
ads, but now you can see them on your timeline.
There are a variety of other changes to come in the next
year. Google and Facebook will both make up around 57% of mobile ad spend. They
also have a slew of other announcements on the horizon, including more advanced
AI that will make it easier for advertisers to reach the right audience.
