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The Facebook Dilemma – Advertisers, We Have A Problem!

Pulling ad dollars from Facebook is admirable and understandable.

However, until the users flee, the latter will not have much of a long term impact. Facebook is funded in large part by small businesses and DTC (Direct to Consumers) and those businesses rely on Facebook for revenue. Think about the last time you were on Facebook, how many times did you see a Coke ad? What about a Starbucks ad?

While companies like Coke and Starbucks, combined add serious revenue to Facebook, the reality is they are just not as invested in digital platforms to the extent they can be, yet. That is a major reason why investors look at Facebook as a company that has not even touched its true revenue growth, yet.

I agree with the reasons to pull ad dollars from Facebook, unequivocally. However, this is the largest platform to spread information in real-time that the world has ever seen. So what is a small restaurant or local business suppose to do? Well, if Facebook is a major part of your CAC and helps generate business in times like this, pulling ads is not an option.

2.6 billion users monthly, there is nothing that comes close (Google is not a social platform).

Facebook’s true power is its users, not the advertisers. Come the end of Q3, with more people sheltered in place and more companies adjusting to this new norm, Facebook is going to show you how they now control the ad market place, not the advertisers. Let’s hope they respond in a positive, ethical way.

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