Facebook’s Growth Highlights Importance of Messenger

Facebook’s Growth Highlights Importance of Messenger

Advertising Facebook

Facebook is having a good year financially. In its recent third-quarter 2019 earnings announcement, the company bested analyst expectations for growth in not only revenue but also membership: monthly active users now number 2.45 billion. Facebook isn’t going anywhere even though its problems have brought upon itself the threat of government regulation and even break-up.

What is Facebook doing right? Well, here’s one answer: Messenger.

What Is Facebook Messenger?

Facebook Messenger is an app that people and businesses use to communicate with each other. Users can send messages, react to messages from others, and exchange photos, videos, and audio files. Facebook operates Messenger as a separate app. And it’s an extremely useful tool for brands, which can share all sorts of things, including ads. Through Facebook Messenger Ads, companies and users enjoy real-time text conversations—with the click of a button.

Currently, Facebook offers a number of different types of Messenger Ads:

  • Destination ads, which employ a lighter touch to engage customers. Rather than the usual “Shop Now” call to action, a “Send Message” button allows users to “get their feet wet,” as it were, and grow acquainted with a brand.
  • Sponsored messages, which deliver specially created messages (a sale coupon, for example) directly to a consumer’s inbox.
  • Home section ads, which crop up in the home dashboard of the messaging application and allow users and brands to engage in organic conversations.

Brands embracing tools like Messenger Ads stand to benefit: according to Facebook, 53 percent of users are more likely to make a purchase if they can message you. And because Facebook Messenger Ads don’t target non-brand-aware users, companies connect with people who have already interacted with their ads previously—an audience that is likely to be receptive (brands also gain points for not invasively reaching out to . . . everyone). Finally, it’s worth noting that Messenger Ads offer local targeting options, allowing brands to touch base with a specific audience based on where the business is located.

What Does Facebook Have to Say About Messenger?

During a recent conference call with investors, CEO Mark Zuckerberg and COO Sheryl Sandberg returned to the topic of Messenger, and its importance, several times. Some key points stand out:

  • Businesses are already using Messenger to drive sales. According to Sheryl Sandberg: “Messaging is one of the fastest growing areas for online communication–especially between businesses and people. We’ve seen businesses use Messenger to reach customers, generate new leads and even sell cars. For example, French auto manufacturer Renault used a combination of Instagram Stories and Click-to Messenger ads to drive sales of a limited-edition vehicle, the Captur Tokyo. Facebook was their only advertising channel, and over the span of 30 days, they sold 100 cars—20 directly through Messenger. This quarter we added a Click-to-Messenger feature in Stories so businesses can grab someone’s attention in Stories and then continue the conversation.”
  • Messenger and Stories Deliver a 1-2 Punch. As noted above, Renault is using Messenger in conjunction with Stories. In the investor earnings call, Zuckerberg and Sandberg underline how businesses can maximize the value of features like Messenger through this type of imaginative pairing. To make it easier for more brands to create ads for the Stories format, Facebook has launched customizable templates for Facebook, Instagram, and Messenger. Advertisers can upload existing photos and videos, then augment them with different layout, color, and text options. The end result? More engaging Stories. And the Click-to-Messenger feature Sandberg references makes it possible for businesses to capture a user’s attention on Stories and then continue the conversation via Messenger.

What You Should Do

 When using Messenger as part of outreach:

  • Consider how Messenger will serve your brand in the context of the entire customer journey. Messenger Ads can spark interest, for example, and the Messenger the app can be a brilliant customer service tool.
  • Combine Messenger with Stories for an engaging and ultimately personal customer experience.

Contact True Interactive

Want to learn more about Messenger and how it will elevate your outreach? Contact us.

 

Facebook Shares an Advertising Roadmap for 2019

Facebook Shares an Advertising Roadmap for 2019

Facebook

Call it was the meltdown that wasn’t.

As Facebook prepared to announce its quarterly earnings January 30, there was a lot of public speculation that its scandal-ridden year might finally scare away advertisers and members.

The doubters were wrong.

Here’s what Facebook announced:

  • A 9-percent year-over-year increase in monthly active users, with 2.32 billion as of December 31, 2018.

  • Fourth-quarter revenues of $16.9 billion, up 30 percent year-over-year. That number beat Wall Street’s expectations of $16.4 billion.

Facebook is not only weathering months of data-privacy scandals, it is actually getting stronger. At True Interactive, we’ve shared our concerns about Facebook’s scandals and their possible impact on advertisers. We still think it’s important that advertisers watch Facebook closely. The threat of government regulation looms large. The number of fake and duplicate accounts are on the rise, by Facebook’s own admission (116 million fake accounts and 255 million duplicate accounts exist on the site). But advertisers should also be aware of some other numbers:

  • 93 percent of Facebook’s advertising revenue comes from mobile.
  • 500 million people use Instagram Stories daily.

  • 2 million advertisers are now focusing on Stories.

Stories play a big part in Facebook’s growth plans for 2019, which Mark Zuckerberg published in a Facebook post. I have excerpted some highlights and used boldface to emphasize some points that jump out at me:

Messaging is the area that’s growing the most quickly, and this year people are going to feel these apps becoming the center of their social experience in more ways. We’ll roll out payments on WhatsApp in some more countries. Private sharing in groups and stories will become more central to the experience. We’re going to onboard millions of more businesses that people can interact with.

On Facebook, I also expect this to be the year where Watch becomes more mainstream. There are now 400 million people who use it every month, and people spend on average over 20 minutes on Watch daily. This means we’re finding ways for video to grow outside of News Feed so it doesn’t displace the social interactions that people primarily come to our services for.

In Instagram, one of the areas I’m most excited about this year is commerce and shopping. There’s a lot of natural activity happening here, and this year I expect us to deliver some qualitatively new experiences around that.

Longer term, I remain very focused on building technology that brings people together in new ways, including through AR and VR. I’m looking forward to Oculus Quest shipping this spring — the feedback there so far has been very positive.

The numbers tell me this:

  • Advertisers need to understand how to capitalize on messaging. In September I wrote an Adweek column about Facebook monetizing WhatsApp. Clearly, Facebook is going full steam ahead here.
  • If you aren’t using Stories, you’re behind. Stories are now table stakes for brand building on Facebook’s platform, which includes Instagram Stories.
  • Figure out how Facebook Watch plays into your strategy. So far adoption numbers are underwhelming. But these are early days. The success of Facebook Live shows that Facebook knows how to make video a branding platform.
  • Integrate your Instagram with commerce. Brands are getting better at giving users compelling reasons to stop scrolling and buy. Expect new features to make social shopping more of an experience.
  • Augmented reality and virtual reality are branding plays for forward-thinking businesses, but AR and VR still have a long way to go.

Facebook is not as weak as its doubters said it was. Neither is Facebook as powerful as some would have you think. The company has issues. It’s not the cool place for Gen Z to hang out. A potential recession coming up could take a bite out of its advertising revenues. And as I mentioned, regulation is a constant threat. But Facebook remains a strong platform for advertisers with exciting features worth embracing. For more insight into how to succeed with digital media, including Facebook, contact True Interactive. We’re here to help.

A Reckoning for Facebook and Mark Zuckerberg?

A Reckoning for Facebook and Mark Zuckerberg?

Facebook

One year ago, I predicted that Facebook could be facing a tough year due to the steady decline in users and the admission by former Facebook executives that the social media platform was designed to get its users addicted and was ripping apart the fabric of society. For those reasons, I cautioned Facebook advertisers to expect diminished performance from their Facebook ads. And as we enter 2019, we’re experiencing a serious case of Facebook déjà vu.

With the most recent revelation that Facebook gave some of the world’s largest technology companies including Bing, Amazon, Netflix, and Spotify more intrusive access to users’ personal data than previously disclosed, Facebook once again finds itself in hot water. Much of the negative publicity in 2018 focused on privacy concerns about Facebook. A few months back, news broke that Facebook could face a fine of $1.63 billion by the European Union for a massive data breach, and in April, Facebook CEO Mark Zuckerberg was grilled by Congress over data privacy concerns. Two questions loom large:

  • Could 2019 be the year Mark Zuckerberg is forced to step aside? Zuckerberg accepting a diminished role is not out of the question given the reality that Facebook has failed to address its problems on its own. What Facebook does not want is tight government regulation, and the company may need to offer up a C-level sacrifice to avoid such an action.
  • Will advertisers scale back? Businesses have continued to advertise on Facebook despite its scandals, partly because Facebook is too big to ignore and partly because there’s nowhere else for Facebook’s users to go. But Facebook is vulnerable to another platform coming along and challenging its dominance – which could change things for users and advertisers.

Advertisers may want to think twice about associating their brands with a social media giant under such scrutiny. Given the current tumultuous state of Facebook, I once again recommend advertisers proceed with caution when it comes to their investment in Facebook marketing and also lower performance expectations.