Where Do You Find Small Joys?

► Social Scene: Meta Shakes Markets

Last Wednesday, February 2nd, Meta, the company formerly known as Facebook, shook financial markets with its 4Q2021 earnings announcement.

Facebook reported these key metrics:

• 1.93 billion daily active users (known as DAUs) in its core Facebook offering. DAUs dropped about 1 million from 3Q201 and missed market expectations of 1.95 billion. This was the first decline in users reported by the social media giant.
• 2.91 billion monthly active users (MAU) and missed market expectations of 2.95 billion. This was the slowest quarterly growth in 3 years.

To put this in context and understand what this means for Facebook and other similar social media platforms, understand how Facebook has continued to increase its user base.

• Facebook grew its user base by adding new segments, notably parents and grandparents. By doing so, Facebook’s standing as a platform targeted at high school and college students lost its luster. Increasingly, younger demographics are flocking to short-form video platform TikTok.
• In addition Facebook invested in other platforms notably Instagram and WhatsApp to expand their offering and user base.

Further Meta’s earnings announcement drew attention to two other key challenges:

• Apple’s change to its privacy policy had a significant impact on Facebook’s advertising revenue. Since it reduced Facebook advertisers’ ability to effectively target audiences. Further, this challenge could cost Meta as much as $10 billion in revenue this year.
• Beyond its difficulties attracting younger users that prefer TikTok, Facebook’s competitive video product, Reels, generates less revenue than when users spend time in their feed.

As a marketer, I believe this news shouldn’t have been as surprising as it was.

Why?
Because the fault lines for these issues already existed.

Unlike other forms of media, Facebook focused its revenue model only on advertising rather than diversifying with other revenue streams. As long as Facebook’s user base continued to grow and users spent more time on the platform, they profited.

Even better, Facebook advertising was a boon for marketers of all types both large and small. By investing in Facebook advertising, marketers benefited from the ability to laser target audiences based on their behavior.

In the process, they could gather otherwise difficult-to-get information about prospects and buyers. Further, they could use this information to find similar or look alike audiences cost effectively for both major advertisers and small businesses.

Since Apple’s changes allow users to control their privacy and tracking, Facebook can’t deliver the same level of advertising effectiveness. While this isn’t a new advertising problem, it’s a significant change in how brands and businesses invest in many social media platforms.

As a result, Meta’s stock dropped 26% the next day and wiped out over ​​$200 billion of the company’s market value. Further, it brought down the stocks of other social media platforms solely focused on advertising such as Twitter, Snap and Pinterest.

What does this mean for you as a marketer?
Beyond rethinking how your Facebook advertising and use of Facebook, focus on how you can get your Facebook based audience to spend time on your owned media.

Throughout the history of social media platforms, well used and liked platforms can disappear seemingly overnight despite their success. For example, my friend and colleague Mike Allton of AgoraPulse and The Social Media Hat blog, lost about a quarter of a million followers when Google+ went POOF!

As Joe Pulizzi, author of Content, Inc. has said for years:

“Don’t build on rented land!”

Actionable Marketing Tips

• Move social media based relationships to owned options. At a minimum, offer your audience a reason to share their contact information with you. Assess whether you need to use an enticement.
• Continue to use organic posts on Facebook and other social media platforms. Data has shown that these posts continue to attract better results than paid options. BUT—realize that social media companies looking for new sources of revenue may change the rules for engagement.
• Determine what other social media options will help your business to expand its reach and audience. Test Slack or Discord channels.
• Assess what these social media changes mean for your distributing content marketing and maintaining contact with your audience.

Actionable New York Marketing Minute

❤️ Spreading the Love

Valentine’s Day is around the corner and love is in the air. In the US, consumers are expected to spend about $24 billion this year. (BTW—Check what I wrote about the holiday earlier in the season.)

Yet you and your audience face very real challenges as we approach Valentine’s Day. Even worse, people are tired of feeling restricted by COVID and limited product availability. So, one solution is to find small joys where you can.

But one thing is true:
We all need more love in our lives whether it’s from our partners, family, friends, colleagues, pets and others.

Although some businesses have reduced their Valentine’s Day emailings, for others, Valentine’s Day is an important element of their annual revenues. These businesses include jewelers, florists, candies and restaurants.

Around NYC, candy sellers dressed up their windows and signage to attract passersby.

Alternatively, give your product a different spin so it stands out. 

For example: Ellevest, a financial services company targeting women, dressed up their Money and Friendship workshop as a Valentine’s Day promotion. Check out their clever copy:

Actionable Marketing Tip:

• Use Valentine’s Day as an opportunity to reach out to your audience to show that you really  care about them. Of course, this should be a non-promotional communication.

Marketing Reads

► Branding on a Budget
Checklist: How To Do Branding On The Cheap

Take the time to make sure that your branding is consistent across all environments and platforms. This article will help you to make sure your brand remains visible.

► Celebrate Customers: 100 Ways You Need To Follow

In a month full of holidays, take advantage of these opportunities to engage with and celebrate your customers, employees and audience.

► Want To Be A Content Entrepreneur? Special Training Offer:

From leading content entrepreneur, Joe Pulizzi, and the team at The Tilt.

Get access to everything you need to go from content creator to content entrepreneur.

Work at your own pace, online classes for anyone looking to grow their content business.

Affiliate Offer