As Facebook membership is steadily growing, so too is ad spend on the platform. Facebook’s chief operating officer, Sheryl Sandberg, recently told Bloomberg the site’s biggest advertisers have increased their spending by at least tenfold this year.
Marketers who aren’t already investing heavily in the platform may consider allocating more of their budgets toward Facebook in light of others businesses’ success and Sandberg’s insight on the future of the platform’s marketing opportunities.
Sandberg believes this boost in marketers’ Facebook budgets is a product of the fact that Facebook advertising is no longer in the experimental stage. Her words mirror the language used by Zuckerberg earlier this year when he announced that Facebook would begin offering analytics tools to marketers.
Sandberg reveals that the site is especially gaining popularity with entertainment leaders. “A movie studio last year that did three movies with us – this year, if they’re releasing 12 movies, they’ll do 10 of them with us,” she told Bloomberg. As big companies start increasing their prominence and releasing exclusive content on the platform, Facebook is becoming a more important web destination for consumers. This, in turn, could help smaller businesses who leverage the site to build brand awareness.
Moreover, Sandberg claims that as membership and overall ad spend increase, the site’s prices are holding steady. This means marketers can get more bang for the same amount of bucks.
It seems the only thing that could slow down Facebook advertisements are recent reports of consumer dissatisfaction with the site – perhaps stemming from the privacy complaints that plague the platform.
In spite of these issues, consumer adoption seems to be holding steady, with Inside Facebook reporting the site gained more than 3 million members in July, most of whom were consumers between the ages of 18 and 25 – a group that is highly appealing to marketers.