Are Meta’s Problems as Bad As They Seem for Advertisers?

Are Meta’s Problems as Bad As They Seem for Advertisers?

Facebook Instagram Meta

Just when you think things couldn’t possibly get worse for Meta, along comes another disastrous earnings announcement. On October 26, Meta, the parent of Facebook and Instagram, announced third-quarter earnings characterized by declining revenue and profits.

Quarterly revenue was $27.7 billion, down more than 4 percent from a year ago, after Meta posted a 1 percent decrease last quarter. Advertising revenue came in at $27.2 billion, down nearly 4 percent year-over-year (although that figure beat analysts’ estimates of $26.9 billion). Since advertising represents 98.2 percent of the company’s total revenue, the revenue drop is especially worrisome for Meta.

So, what’s causing the meltdown?

Weakening Demand

The biggest factor: diminishing demand for ad products caused by market uncertainty. In a call with investors, CFO Dave Wehner cited “weak advertising demand, which we believe continues to be impacted by the uncertain and volatile macroeconomic landscape.” CEO Mark Zuckerberg added that “. . . it’s not clear that the economy has stabilized yet so we’re planning our budget somewhat more conservatively.” As a result, Meta predicted that ad revenues will be $30 billion to $32.5 billion for the fourth quarter, below analysts’ expectations of $32.2 billion. (That level would represent another decline from a year ago, when total revenue was $33.67 billion.)

The TikTok Factor

The company, like Google, also faces rising competition from TikTok, whose popular short-form videos have generated a sharp increase in advertising revenue. According to Statista, TikTok generated $4 billion in advertising revenue in 2021, a figure that is expected to double by 2024 and triple by 2026. Digiday reported recently that ad agencies are shifting content creation from Instagram and YouTube to TikTok. In April, Insider Intelligence predicted that TikTok’s ad revenue will grow 184 percent to nearly $6 billion in 2023 (that amount tops Twitter and Snap combined).

To fight TikTok, Meta has given priority to the development and growth of Reels, its short-form video format on Facebook and Instagram. Meta is now seeing 140 billion Reels plays across Facebook and Instagram each day, which is a 50 percent increase from six months ago, according to Zuckerberg.

But Reels doesn’t monetize as effectively as the company’s other types of content. So, as Meta pivots toward showing more short-form video, Meta is taking a quarterly revenue headwind of more than $500 million, Zuckerberg told investors. Meta expects to get to a more neutral place with this shift within the next 12 to 18 months.

“As Reels grows, we’re displacing revenue from higher-monetized surfaces,” Zuckerberg told investors. “That’s clearly the right thing to do.”

The Apple Factor

Meta continues to grapple with the fall-out of Apple’s privacy controls, known as App Tracking Transparency (ATT). Meta said its average ad price decreased 18 percent on the year, as it adjusts to Apple’s changes that make it harder for Meta to track users and serve them personalized advertising. In the same quarter last year, the average price per ad climbed 22 percent.

But Meta also said that the blow to ad revenue caused by ATT is diminishing. Per CFO Dave Wehner, “Consistent with our expectations, the headwind to year-over-year growth from Apple’s ATT changes diminished in Q3 as we lapped the first full quarter post the launch of iOS14.5.”

But Apple isn’t done punishing Meta. Apple recently changed its App Store terms to take a portion of social-media advertising revenue. The policy change requires users and advertisers to make an in-app purchase when they pay to boost posts in apps like TikTok and Meta’s Instagram. Apple takes a commission of as much as 30 percent on in-app purchases, meaning a company like Meta would lose a portion of its ad revenue to the iPhone maker.

The company also faced stiff criticism from investors over its continued push into the metaverse, which has cost the company billions of dollars. Although the company’s metaverse investments technically do not affect its ad revenue – they’re more of a drain on profits than anything else – they have raised concerns that Meta is taking its eye off its core social media growth engine in the web 2.0 world.

The Good News

But on the bright side, Meta reported that:

  • Daily Active Users (DAUs) for the quarter were: 1.98 billion versus 1.98 billion expected, according to StreetAccount. That was up from 1.97 billion three months ago. 
  • Monthly Active Users (MAUs): 2.96 billion versus 2.94 billion expected, according to StreetAccount

Meta said Instagram now claims more than 2 billion monthly active users, while WhatsApp’s user base has surpassed 2 billion daily active users, with North America being the messaging app’s fastest-growing region.

What This Means for Advertisers

So, what does all this mean for advertisers? Well, now might be an opportune time to advertise on Meta, with its user base being strong and average ad prices decreasing. The company is rolling out new ad products to improve the monetization of Reels, and a new “Performance 5” framework, which is a set of five data-proven tactics that can help to improve advertising performance on Meta platforms amid tighter privacy controls. For instance, broad targeting consists of an automated targeting approach that reportedly produces better results for Facebook and Instagram ads than more refined, more niche audience approaches.

Meta, like its competitors, faces some difficult times amid economic uncertainty. But businesses that are taking the long view with their advertising efforts may turn out to be the winners so long as they don’t push the brakes on their online advertising efforts.

Contact True Interactive

To succeed with social media advertising, contact True Interactive. We have extensive experience helping businesses succeed on social media.

How Meta Is Defending Its Advertising Turf

How Meta Is Defending Its Advertising Turf

Meta

Meta, the second-largest online advertising platform in the world, faces numerous challenges ranging from stricter privacy controls to the emergence of new competitors such as Amazon Ads and TikTok. Meta, like the market leader Google, is defending its position the best way it knows how: rolling out new ad products.

On October 3, Meta announced new ways for advertisers to reach the company’s user base, which encompass brands such as Instagram, Facebook, and Messenger. They include:

  • Post-loop ads on Facebook Reels. The skippable video ads, ranging from four to 10 seconds in length, play at the conclusion of a Reel, followed by the original Reel resuming and looping again. (Instagram Reels already have ads.)
  • Image carousel ads for Facebook Reels. These are horizontally scrollable and can include anywhere from two to 10 image ads. They appear at the bottom of Reels content.
  • Ads in creators’ profile feeds. These are aimed at giving creators another monetization option and will allow them to earn extra income from ads within the content they already have in their profile. This ad format is being tested with a small number of creators in the United States. A Meta spokesperson told Adweek that company will make it clear that creators are not affiliated with the ads that appear in their profile feeds.

Meta also announced new spaces available for advertisers on both the Explore page of Instagram, within Facebook Reels and on creators pages.

But wait – there’s more! Instagram also launched a series of ad formats. For instance, Instagram  is developing an open beta of augmented reality ads in feed and Stories. This makes it possible for brands to provide an immersive AR ad experience and encourage people to interact via their surroundings.

Instagram is also offering new multiadvertiser ads that use machine learning to serve ads from other businesses under an ad that may be of interest to the user. In theory these will help advertisers be discovered by Instagram users who are already in a shopping mindset. The new option is only enabled for direct-response objectives. Advertisers will have to opt in, with the opportunity to opt out whenever they choose.

The most interesting take-away from Meta’s new ad formats is the way Meta is trying to monetize the value of Reels for creators and Meta. For in-Reel Facebook ads, creators would get 55 percent of the revenue, while Meta would get 45 percent. The more consumers see Reels, the less time they spend in the legacy parts of the platform like the main feed.

In a July earnings call, CEO Mark Zuckerberg said, “We saw a more than 30% increase in the time that people spent engaging with Reels across Facebook and Instagram.” If creators of Reels can make money from their participation on these platforms, they could start to win back some of the audience Meta has been losing to TikTok.

Will Meta succeed? One concern advertisers shared with Adweek is that too many ad formats could create saturation. If users feel like their experience is cluttered with too many ads, their engagement with Meta platforms will decline.

But if monetizing Reels makes Meta a more attractive destination for creators, the format could provide a credible alternative to TikTok. For now, businesses should work with their agency partners to evaluate these ad products against where their audiences are most likely engaging with their brands. If you are already achieving strong results by advertising on TikTok, for instance, Meta’s new formats might not be necessary unless you aim to court Meta’s relatively older audience (compared to TikTok). But if you’re already looking for ways to reach Meta’s audience, and you’ve been using Meta as an ad platform, these formats may hold more appeal.

Contact True Interactive

To succeed with social media advertising, contact True Interactive. We have extensive experience helping businesses succeed on social media.

How Apple Will Grow Its Advertising Business

How Apple Will Grow Its Advertising Business

Apple

Apple changed the advertising industry when the company launched an important privacy control in 2021, Application Tracking Transparency (ATT).  ATT asks iPhone users to decide whether apps can track them across other applications and websites. After the introduction of ATT, 62 percent of iPhone users opted out.

This has created a problem for advertisers and ad tech platforms such as Meta that rely on the ability to track user behavior across the web in order to serve up targeted ads to them. Without tracking user behavior via third-party cookies, their ads are less personalized. Meta said that ATT would cost the firm $10 billion in revenue in 2022. Apple, for its part, justified the new privacy control as taking a stand for consumer privacy.

Well, we now know Apple had something else in mind with ATT: taking a stand for Apple’s advertising business.

As Bloomberg reported recently, Apple is now earning $4 billion in revenue annually by selling ads on its devices, and the company plans to grow that amount aggressively. Granted, $4 billion is a far cry from the $209 billion that Google pulled down from advertising in 2021, but Apple’s newfound focus on ads sure casts its consumer privacy push in a different light.

How Does Apple Earn Ad Revenue?

Apple makes money selling ads on spaces that people see all the time on their iPhones and connected TVs as they navigate their screens to download apps, read the news, and watch content. Those include:

  • The App Store, as shown here:

Apple Ads

  • Apple’s own News and Stocks apps.

The additional ad revenue will come from:

  • The Today tab (the home page of the home page of the App Store, which includes content ranging from App of the Day to Game of the Day).
  • The You Might Also Like section of the App Store (this is found at the bottom of the App Store).
  • Third-party app download pages.

Does ATT Apply to Apple?

How will Apple sell targeted ads? By collecting first-party data, meaning the information that users of Apple devices cough up to Apple whenever they use the App Store, News and Stock apps, and so on. And, by the way, Apple will not make it easy for users to opt out of having their data tracked. You can disable the ad personalization feature, but you have to look for it under Apple Advertising in the settings app’s Privacy & Security menu. There is no pop-up menu asking you if you’d like to have tracking disabled as is the case with ATT, as shown below:privacy noticeBut shouldn’t ATT also apply to Apple? Not in Apple’s view. According to Bloomberg:

You may ask then, why don’t Apple apps have to ask permission to track users via a pop-up message? That’s what happens with other apps under ATT.

The reason, Apple says, is that the system “does not follow you across apps and websites owned by other companies.” That’s what ATT is designed to prevent. If a third-party app doesn’t track across outside apps and websites, it also doesn’t need to show a pop-up.

The “we are exempt from our own policy” rationale is how Google justifies its plans to kill third-party cookies on the Chrome browser. Google apps such as YouTube are exempt because technically they collect first-party data, not third-party data.

It’s easy to connect the dots and see what’s going on here: by attacking third-party cookie tracking, Apple bolsters its own ad program, which relies on first-party data collection.

Apple’s ad business is far too small to threaten the lead enjoyed by Amazon, Google, and Meta. But Apple has the muscle and money to grow its business quickly. ATT was a declaration of war.

What Advertisers Should Do

  • Understand the big picture. There is no going back: tech firms such as Apple and Google are undercutting the value of third-party cookies. Accept the reality that as third-party cookies crumble and technology companies enact privacy controls, your ads will be less targeted than they were. This does not mean you should stop advertising online. Online advertising remains the most efficient and cost-effective way to reach your audience. At the same time, first-party data is more valuable than ever to advertisers as a means to creating targeted ads. Consider ad platforms such as Amazon Advertising and Walmart Connect, which give businesses entrée to a vast base of customers who search and shop on Amazon and Walmart. True Interactive offers services on both platforms in addition to our longstanding work on Google, Bing, and other platforms. Learn more about our services with Amazon Ads here and Walmart here. Apple and Google cannot undercut what these companies are doing.

True Interactive can help you navigate the ever changing world of consumer privacy and advertising.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Lead image source: https://pixabay.com/photos/apple-inc-mac-apple-store-store-508812/

 

 

 

Where Amazon, Google, and Meta Are Headed

Where Amazon, Google, and Meta Are Headed

Amazon Google Meta

Technology earnings week is always watched closely. The rising and falling fortunes of Alphabet (Google), Amazon, Apple, Meta, and Microsoft have a direct impact on adjacent industries such as retail, advertising, and marketing. During a topsy turvy year such as 2022, the most recent quarterly earnings announcements of the Big Tech firms were followed especially closely. And here are some of the highlights from the Big Three of online advertising – Amazon, Google, and Meta — with implications for online advertising:

  • Amazon beat analysts’ estimates and enjoyed a strong quarter with the exception of its core retail business. The big news was the continued strong growth of Amazon Ads, which is Amazon’s advertising business that has quickly challenged Google and Meta for leadership of the online ad market. Ad revenue climbed 18% in the period for its most recent quarter. All told, Amazon Ads raked in $8.76 billion in the second quarter. Notably, in its earnings announcement, Amazon highlighted the recent launch of Amazon Marketing Stream, which “automatically delivers hourly Sponsored Products campaign metrics to advertisers or agencies through the Amazon Ads API.” This is a sign that Amazon is developing ad tech data and marketing services, which is a direct challenge to Google. What it means: the success of Amazon Ads dovetails with the ascendance of a more privacy-focused era. Apple in particular has initiated privacy controls that make it more difficult for advertisers to target consumers with ads that use third-party data. Amazon Ads is beyond the reach of such privacy controls because Amazon Ads is based on first-party data that Amazon collects from its customers. Amazon is not the only retail business building its own ad network. But it’s the leader. We expect more businesses will choose Amazon Ads as an advertising platform, and we have developed services accordingly.
  • Meta suffered its first-ever revenue drop for the quarter. The reasons are complicated. First off, TikTok is threatening the popularity of Facebook and Instagram (both owned by Meta), and Meta’s response to TikTok, Reels, doesn’t generate money as efficiently as Instagram Stories and the main news feed. Meta has also reeled from the impact of Apple’s privacy controls. What it means: Meta is in a time of transition – but never count out Meta. The company is investing heavily into the emerging metaverse, which is dragging its profits down but may boost Meta over the long run. And although Reels are a work in progress, progress is being made. As analysts at JMP wrote, “With Meta making progress with Reels while AI improves recommendations across content and advertising, we expect growth to rebound from current levels while the company is more disciplined in its cost structure.” And, overall, the company’s base of monthly active users continues to increase. The real threat to Meta in the near term: how well the company can rebound from the threat of Apple’s privacy controls. The long-term threat: how well Meta can attract and keep Gen Z users.
  • Google is sitting pretty. Alphabet’s search ad sales grew more than 13 percent in Q2 2022 to $40.7 billion, beating analysts’ expectations of $40.2 billion. Search, of course, is Google’s bread-and-butter business, and Google’s investments into its core search ad units are paying off as advertisers lean into performance marketing tactics amid economic uncertainty. But life isn’t all rosy at Google. At YouTube, ad sales rose 0nly 5 percent after jumping 84 percent in the same period a year ago. This reflects the impact of TikTok’s popularity. What it means: Google is going to flourish in 2022 and 2023 especially as advertisers weather economic uncertainty. Google is a safe bet, and Google continues to develop new ad units that enhance its performance marketing capabilities. Watch for Google to continue to push artificial intelligence-related services and tools that automate online advertising — while managing the increasingly thorny challenge of developing alternatives to third-party cookies, which the company had said it would do by 2022 and now is rescheduling for 2024.

What Advertisers Should Do

  • Keep a diversified ad portfolio across the Big Three: Amazon, Google, and Meta. If you are satisfied with the results you are seeing, don’t let Meta’s challenges scare you away. But do a gut check with your agency partner on how your ads are performing.
  • Work closely with your agency partners to understand the impact of privacy controls, especially from Apple.
  • If Gen Z is an important audience, take a closer look at TikTok. TikTok looms large as it challenges YouTube and Meta especially.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Amazon’s Next Frontier: Local Advertising

Amazon’s Next Frontier: Local Advertising

Amazon

Amazon recently announced for the first time just how big Amazon Ads has become. And the number is very big. As in $31.2 billion. Amazon said in its in 2021 earnings announcement that Amazon Ads had achieved 32 percent year-over-year growth, which includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.

$31.2 billion is not quite the size of Meta’s and Google’s ad businesses. By comparison, Google achieved $209.5 billion in ad revenue for its most recent fiscal year, and Meta achieved roughly $115 billion for the same time period. But Amazon Ads eclipses Microsoft, Pinterest, and Snap, and the company has earned a place alongside Google and Meta as one of the big three online advertising platforms.

And now, it looks like Amazon plans to get bigger in an untapped market: location-based advertising. Business Insider reported recently that Amazon is building a local ad business by advertising positions for a Local Ads team in major cities such as Chicago and New York. Apparently Amazon Ads will offer a slate of ad units, including streaming TV ads and a demand-side platform that sells ads off Amazon’s website. (Note that Amazon generates the lion’s share of its ad revenue from search ads that appear on the Amazon website; but Amazon has invested more in ad tech to get bigger ad budgets from advertisers.)

This is an intriguing development, to say the least. Location-based advertising capitalizes on the fact that local searches by consumers are wildly popular. This is a big reason why hyper local sites such as Nextdoor have achieved strong growth: people typically look for things to buy at stores close to their homes. So, businesses have a strong motivation to rank well in those “near me” searches, and of course advertising can amplify their presence. Meta and Google both offer strong location-based ad services, but lately Meta has taken a financial hit because of the impact of Apple’s Application Tracking Transparency privacy controls, which limit the effectiveness of ad targeting, including location-based ad targeting.

According to a Deutsche Bank report from 2021, 75-percent of Meta’s advertising revenue came from small businesses. Meta could be vulnerable if Amazon’s plans are rolled out. And Amazon doesn’t have to worry about Apple’s privacy controls. The company can sell ads based on first-party data, or data that people on Amazon share when they search and purchase (Apple’s privacy controls do not affect first-party data). Now, consider the fact that Amazon operates brick-and-mortar businesses such as Whole Foods and Amazon Fresh, which rely on location-based advertising. An Amazon location-based ad service could benefit the company’s own stores.

But that’s not all. Just as Amazon sells online ads to merchants, the company is apparently banking on the ability to do that for retailers, automotive dealers, restaurants, and other merchants that need to be present in local search results.

For now, Amazon will continue to grow its ad business mostly through Amazon.com, where companies pay to be listed as a “sponsored product” high up in the search results. Amazon also offers video commercials and ads on Amazon’s FireTV device. Amazon Ads also helps brands with online advertising on sites that it does not own. And Amazon has developed advertising in devices and platforms such as Twitch.

It will be interesting to see how this development plays out especially with Walmart leveraging its own small but growing ad business that capitalizes on the company’s online/offline presence. Walmart could be a strong alternative to Amazon.

We recommend that advertisers manage the online ad solutions that are most relevant to their own customers’ journeys from awareness to purchase. Keep an eye on Amazon. The company has built incredible momentum, and an increasingly privacy-centric landscape favors the growth of its ad business.

Contact True Interactive

At True Interactive, we monitor new ad products all the time and help our clients prosper amid the evolving landscape. Contact us to learn how we can help you. Learn more about our Amazon Ads services here.

Celebrating 15 Years of Growth at True Interactive

Celebrating 15 Years of Growth at True Interactive

Advertising

2022 marks a big milestone: True Interactive celebrates our 15th birthday. We’re now old enough for a learner’s permit to drive a car in Illinois.

Our story, and the story of the internet, has been shaped enormously by the actions of a few influential companies:

  • Google organized the world’s information online and taught everyone how to find it.
  • Meta connected people through social media.
  • Thanks to Apple, we took the internet with us on our mobile phones.
  • YouTube changed how we consume content with video.
  • Amazon made the world comfortable conducting commerce online.

These and a handful of other companies rewrote the rules for how businesses and people discover each other and build relationships.

Online advertising is at the center of this change. At True Interactive, we are grateful to the clients who have trusted us to help them figure out how to succeed in the digital age, and to our own people who’ve brought to our client relationships a spirit of hard work, collaboration, transparency, and a commitment to results. Businesses like to say that their people are their strongest assets, but people are more than that: they form our culture. Both the people who work for us and the people who work with us.

And we are proud of that culture. The magic that happens when great people and clients collaborate has produced remarkable results, such as triple-digit returns on ad spend and a dramatic reduction in costs. (You can read more about our work here.) And from our experiences, we’ve developed services ranging from search engine marketing to social media advertising that create a foundation for our team to innovate.

The next 15 years will evolve differently than the last. We’re probably nearing the end of an era when single companies could wield such enormous impact. The industry has become far too diversified for one business to change consumer behavior in far-reaching ways as Google did with its founding in 1998. And the fast-moving digital world still has few barriers to entry, which opens up the playing field.

Consider TikTok, which didn’t even exist until 2016 and has now challenged YouTube’s dominance with inventive short-form video. Or Snapchat, which keeps nudging the marketing world to embrace augmented reality even though its main rivals such as Meta had a long head start. The connected TV space still feels wide open.

And then there’s the metaverse. It’s just too vast and far-reaching for any single company to dominate. In fact, the fundamental notion of the metaverse is predicated upon the development of a decentralized web, Web 3.0. We’re only six months into 2022, and we’ve already seen just how much of a free-for-all that this emerging world feels like right now. Some of the building blocks of the metaverse, such as cryptocurrencies and nonfungible tokens (NFTs), sounded so fresh and exciting at the beginning of the year. Now businesses and people everywhere are learning (sometimes the hard way) how far those technologies still have to go before they redefine the landscape the way search, mobile computing, and video did.

We’re as bullish on emerging technologies and forms of computing as we were 15 years ago when we figured out how to help businesses build powerful brands even as human beings were learning how to search online. We can promise you that regardless of how the digital world evolves, we will always:

  • Not succumb to hype. We’re on the forefront of change, but everything we need to do must be grounded in reality, not wild speculation.
  • Deliver measurable results. If we can’t deliver measurable value, we won’t do it.
  • Be totally transparent. Our clients know what they’re getting from us. And they know how we deliver value. Trust is a wonderful thing. It must be earned through openness.

What excites us most? The unknown. The next wave of change that no one sees coming. The unknown creates a level playing field. The unknown is a vast well of opportunity. Much of the digital world was unknown when we were founded, and look where we are now thanks to our people and our clients. Whatever happens next, our culture of hard work, collaboration, transparency, and commitment to delivering results will ensure that we thrive. Together.

Happy 15, everyone! 

— Kurt Anagnostopoulos and Mark Smith

What’s Next for Advertisers on Twitter with Elon Musk as an Owner?

What’s Next for Advertisers on Twitter with Elon Musk as an Owner?

Twitter

Will advertisers leave Twitter under Elon Musk’s ownership? That question is getting bandied about a lot these days. That’s because of widespread speculation that Musk will relax Twitter’s content moderation policies. This, in turn, could conceivably create brand safety issues by making controversial content more prevalent on the app, which has nearly 400 million monthly active users. For example, Advertising Age reported that “Marketers are worried that Musk will reopen the floodgates on uncivil behavior on the platform.” Ad agencies consulted by Ad Age said that their clients are increasingly asking about the risks of staying on Twitter. Here’s what I think will happen:

  • Some advertisers will flee Twitter and never return.
  • Some advertisers will put Twitter advertising on pause but eventually return to Twitter.
  • Most advertisers will do nothing.

The fact of the matter is this: advertisers have shown by their actions that they have a higher tolerance for social media controversy than news media reports might have you believe. We have seen time and again controversies erupt on platforms such as Facebook, Instagram, Twitter, and YouTube. Most recently, Facebook became the target of widespread public scorn after whistle blower Frances Haugen, an ex-Facebook employee, shared internal documents that showed Facebook executives knowingly allowed its algorithm to publish harmful and divisive content on users’ news feeds.

The resulting expose, published in The Wall Street Journal, also sparked speculation that advertisers would leave Facebook. Some did. But most did not. Why? Because the fact that a publisher and aggregator of news content (which is what Facebook does) knowingly shares divisive information was not exactly shocking news to advertisers. Mainstream news media have been attracting audiences by publishing divisive content for decades, long before the internet existed. And they’re doing so today. As a result, advertisers have a higher tolerance for conflict than Facebook’s critics did.

What really hurt Facebook was Apple. Facebook’s parent, Meta, disclosed recently that the company would suffer a $10 billion revenue hit in 2022 because of the impact of Apple’s iPhone privacy controls launched in 2021. Meta’s stock tanked dramatically so as a result. Why? Because privacy controls would likely make ad targeting more difficult on Facebook. It was ad targeting, not a Wall Street Journal expose about the company’s culture, governance, and content policies, that hurt Facebook.

The real concern among advertisers is not whether controversial content will appear on Twitter. The fact is that controversial content already does appear on Twitter. Advertisers are more concerned that their ads could appear alongside controversial content. This is more of an issue with how an app manages its algorithm. YouTube, for instance, landed in hot water recently because advertisers’ content was appearing alongside hate speech, but most advertisers understood then (and understand now) that it’s impossible to stamp out hate speech completely. Many more also understand that controversial content is not necessarily hate speech. These realities are part of being a brand on social media – and they always have been.

Twitter has been down this road before, too, such as when a major hack involving a crypto currency scam embarrassed the platform and cast a spotlight on how easy it is for bad actors to exploit Twitter to commit crimes. Or when the proliferation of trolls and bots threatened Twitter’s reputation. Advertisers were concerned, to be sure, but for the most part they reacted by pressuring Twitter to improve its algorithm as opposed to demanding wide-scale changes in how Twitter operates fundamentally.

My advice to advertisers is:

  • Keep advertising on Twitter if you are satisfied with your results so far.
  • Monitor brand safety closely, but that’s true whether you are advertising on Twitter or any other social media app.
  • Watch where your audience goes. There is a very real possibility that ongoing controversy at Twitter could cause a drop in users. The question is whether your audience will leave Twitter. It’s a question. It’s not a certainty. Work with your agency partner to keep tabs on the situation, but don’t make assumptions based on news headlines.

True Interactive monitors developments on social media all the time as part of being a well-informed partner to our clients. Keep watching this blog for updates.

Contact True Interactive

To maximize the value of your social media advertising, contact True Interactive. Our expertise in this area delivers measurable value to our clients.

Twitter image by Alexander Shatov on Unsplash

Elon Musk image by https://pixabay.com/illustrations/elon-musk-space-elon-spacex-tesla-6222396/