With all the recent updates with IOS 14 and Google getting ready to do the same thing, the big question is do Facebook ads still work?
You might like this answer, but it depends.
In the past with a decent ad and enough pixel data, Facebook could turn out some crazy ROI.
But that’s gone.
Now Facebook is relying on the creative to do most of the work.
That means descriptions, images, headlines, etc. need to pull their weight.
That is where the breakdown is happening.
The ads I see running in my newsfeed don’t have copy strong enough to even get me to click. I’m a hyper-clicker, so you know it’s a problem.
And that’s not all.
Facebook’s growth is declining. The number of app downloads on the Apple and Google play store have been steadily falling for over 12 months.
Clubhouse, TikTok, and a slew of other apps are eating away the audience.
ABC, CBS, and NBC were once the only TV channels, but now there are hundreds of channels segmented by niche.
We are now seeing the same type of fragmentation happening to digital media.
So yes, Facebook ads still work, but you need to be more creative. Plus, now is the time to start testing out other marketing channels.
AT&T announced Monday that it will merge its WarnerMedia with Discovery Inc creating the #1 player in ad-supported premium video in the US.
This is causing Facebook to freak out because this new competitor is aiming to take away market share.
While we don’t know the impact of this merger over the long run, we do know that Facebook is struggling to find ad space. Three years ago they bet everything on Facebook video.
They wanted to go head to head with YouTube, and so far it is not working. Now throw in the AT&T and Discovery merger, and things have gone from OK to bad very quickly.
Talk soon,
Charles
