Facebook & Google Dominate the Market
I’ve seen different estimates on just how large the digital marketing industry is. While some estimate the overall advertising industry to be north of $600 billion, reports are coming in that digital marketing is expected to surpass $80 billion in 2017. Facebook is climbing through the roof. In the second quarter of 2017 alone, Facebook reported more than $9 billion in advertising revenues (up 47% from the Q3 2016). Where is all of this money coming from?
It is obvious that people are spending more and more time online. Nonetheless, cnbc claims (I mean “reports”) a steady $72 billion U.S. advertising dollars spent on television ads. Many television stations, especially the news, attribute their success in maintaining market share and advertising revenues to live streaming their shows…and of course, the number of hours baby boomers spend online continues to increase.
The bottom line is that your Facebook newsfeed is becoming a top place for Facebook to earn their money from businesses trying to reach you. The upshots are that Facebook will continue to build out robust tools to allow the most relevant content (or largest pockets) to reach you making your newsfeed an increasingly great place to find things. The down shot is that your business will likely have to spend more money on marketing to use these targeting tools as the digital space becomes increasingly crowded marketplace.
A key tip to consider when building your online community is to really understand your niche carefully. This will save you piles of money in the long run. For example, instead of spraying a flier in front of 100,000 people in your target zip code, understand where they hang out and strategize how to reach them there and retarget those who expressed even the slightest interest in your product (e.g. visited your website, liked a post, etc.). Consult with experts to architect a proper digital strategy because there are inexpensive ways to maximize the impact of your online efforts and no shortage of methods to spend money.