Is Facebook still relevant? It's a question we've heard many times: do a simple web search and you'll find that everyone from Wall Street analysts to marketing professionals are questioning the value of the platform. As with most broad, over-arching questions like, "Is Facebook still relevant?" the answer is a relative one, because it depends on how one defines "relevance" and how a small business uses the platform for its inbound marketing goals. Therefore, a more thorough examination of Facebook's so-called "relevance" is in order.
Understanding the Challenges Facing Facebook
First, it is important to be completely transparent about the challenges Facebook is up against, both in the short and long-term. It's no secret that Facebook has lost its "cool" factor. These things inevitably occur when a company becomes as omnipresent and large - one billion users and counting - as Facebook. In addition, smaller, more hip companies are eating into Facebook's user base. Think Snapchat, which famously refused Facebook's $3 billion acquisition offer. In addition, many Facebook users are increasingly concerned about privacy issues and the company's ever-changing policies on the issue.
But Remember: "Relevance" is Relative
It goes without saying that Facebook is aware of all of these issues. For example, towards the end of 2013, David A. Ebersman, Facebook’s Chief Financial Officer, noted that the company had seen “a decrease in daily users, specifically among younger teens.” According to Ebersman, these users, mostly American and likely around 13 or 14, weren’t deleting their accounts; they were, however, checking their accounts less frequently.
At the time, many news outlets made a big fuss out of Ebersman's comments: here was further proof, in the words of Facebook's own CFO, that Facebook is becoming less relevant. The comment made headlines but completely oversimplified the issue. If you're a small business and your primary audience is 13 or 14-year old Americans, then yes, it should be cause for alarm. But most small businesses who use Facebook for inbound marketing purposes reach a completely different demographic. Therefore, the more telling question is "Is Facebook still relevant to your specific business?" And the answer, generally speaking, is "yes."
"Relevance" is More than Stock Price or Analyst Reports
In addition to misappropriating Ebersman's quote to answer the question "Is Facebook still relevant," other analysts and writers - quite understandably - view the company's relevance through the lens of stock performance. However, once again, a flat stock price doesn't mean the platform can't provide value to your marketing department. Furthermore, one can make a convincing argument that Facebook's financial valuation is well-positioned for the long haul: by embracing mobile advertising, the company can relatively easy generate income from its one billion-plus users.
Facebook's Exchange Platform Continues to Impress
It's also important to talk about the elephant in the room: Facebook's ad retargeting Exchange platform, which rolls out highly-customized paid ads that leverage users' profile data. The platform remains a hugely valuable tool for marketing departments that has consistently outperformed traditional display ads. For example, according to recent data advertisers spent 127 percent more on spend on Facebook Exchange ads in November and December 2013 than the same period in 2012. Most compellingly, advertisers benefited from 58 percent higher click-through rates (CTR) and 18 percent lower cost per conversion compared to the 2012 holiday period.
Your Marketing Department is the Best Judge of Facebook's Relevance
By this point, we hope we've successfully argued that the idea of "relevance" is only as, well, relevant to your company and your inbound marketing goals. Therefore, we'd like to turn the question around: the best person to answer the question "Is Facebook still relevant?" is marketing manager who uses the platform. To gauge the "relevance" of Facebook, users should:
- Regularly check engagement metrics.
- Make sure your page is aligned to your brand and reaching the right audiences.
- Consistently post compelling content to attract visitors to your Facebook page, and...
- Most importantly, quantifiably track the ROI of your paid ads on the platform.
Does Facebook deliver a return on your inbound marketing efforts? Then it is relevant. Does it underperform compared to other inbound marketing channels? Then some tweaks may be in order. It's a simple as that.
With that in mind, we'd like to your feedback: do you think Facebook is still relevant? Have Facebook ads delivered consistent returns for your firm? Do you expect to invest more in Facebook ads in the future? Less?
Looking to get the most out of Facebook? Contact us for a free consultation.
