AD cost will increase.
Facebook has been in hot wate
r once again due to the big data hack publicized recently, with a fine for that potentially costing them over $1 billion, and the new scandal that they may have hugely overestimated video views.
What’s the first thing you do when you have a large debt to pay off? Pass the cost on to your customers…
So be sure make aware your co-workers of that 😉
Customer dissatisfaction: data security and ad fatigue.
Facebook also have other reasons to need to build trust again with their users. They have barely been out of the news in 2018, whether for Mark Zuckerberg giving testimony to Congress in April, the Cambridge Analytica scandal around Trump and Brexit, or the news that the phone numbers that users submitted in goodwill for the 2-factor authentication process to improve security were actually being given to third parties as data.
The general population is much warier now about their data being shared or sold on. Trust is implicitly needed for a good buying experience, and businesses need to show transparency and help build a connection with their audience.
That same audience is increasingly aware of the importance of information security, or infosec, but also very tired of being tracked around the internet being retargeted for ads they might be interested in. We’ve all seen an ad appear on our screens hours or even minutes after we’ve been searching for a similar item.
This is the power of Facebook Ad retargeting but consumers are experiencing ‘ad fatigue’. You need to take note and keep a lid on the frequency of their ads (how many times the ad is shown to the same person).
New competitor for Facebook and Google?
Facebook and Google may be a ‘duopoly’ in the advertising world, but competition is hotting there’s another huge player muscling in on the duopoly’s ad revenue too – Amazon is increasing its ad revenue and has a huge headstart in targeting from its massive database of unique customer information. Amazon is even said to be building its own ad server which would slot it into direct competition with Google.
With its well-known TV and entertainment ambitions, the future Amazon Connected TV might actually give it a competitive advantage over Google. Given that Amazon’s ad revenue grew by an astonishing 129% in Q2 of 2018 to over $2 billion, and is predicted to rise to $5 billion by the end of Q4, anything is possible!