Hitting confidence in Facebook will not affect your advertising revenue

The news and the false profiles have undermined the confidence of users in this social network. However, the advertising revenues of Mark Zuckerberg’s company will not be affected by these reputational problems, according to an eMarketer analysis. eMarketer cites a survey by The Verge and Reticle Research to explain the impact that the constant problems of public perception have had on the brand. According to the survey applied to US Internet users, the level of trust in Facebook is lower than that of banks and some other competitors in the technology industry such as Amazon, Google, Microsoft, and Apple.

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The survey concluded that the only company Facebook could overcome in terms of trust was Twitter, another of the social networks affected by the spread of false and irrelevant content. When analyzing the degree of popularity of the social network among Internet consumers, the survey once again left Facebook in a bad position compared to its competitors. According to eMarketer, Facebook has been the object of harsh criticism for allowing also the massification of “offensive content and facilitate the purchase of discriminatory advertisements”.

The Verge and Reticle Research, for example, determined that only for 25.2% of the respondents the News Feed on that social network seemed more interesting compared to a year ago. While for 14.8% they found the content of their News Feed less interesting or relevant, and 29.9% did not even have clarity about it. Given the discussion regarding the relevance of social networks, today several analysts and founders of these companies even wonder if these communication channels have lost their way. In the case of Facebook, an evident transformation has been noticed since its first known version in 2005, which managed to unseat the popular Myspace from the first place in the audience.

Mark Zuckerberg, the founder of that social network, said recently that he would reverse many of these changes by prioritizing the contents of friends and family as in the beginning. However, just by announcing these plans, the entrepreneur felt the effects in the market since he would have lost the US $ 2,900 million at the close of the day of this Friday, January 12. Already at 1 in the afternoon in New York (USA), there was a fall of 3.6% in the value of the shares of the giant social networks. Due to this situation, Mark Zuckerberg lost the US $ 74,400 million of his fortune calculated in Bloomberg Billionaires Index.

The challenge of Facebook is large scale and everything points to his Achilles heel are fake content.

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Quoted by eMarketer, Society for New Communications Research of the Conference Board (SNCR) concluded in a survey that 73% of users want social networks to lead the fight against this type of content. eMarketer concludes that despite these challenges Mark Zuckerberg’s social network will continue to be a leader in social media advertising. In fact, it estimates that it will obtain the US $ 21.57 billion in advertising revenue only in the United States during 2018, while newspaper advertising will reach only US $ 10.7 billion.

This level of spending would be equivalent to 83% of the total resources allocated to advertising on social networks in that country, according to calculations by eMarketer. To get an idea about the power of Facebook, eMarketer states that this same year Snapchat will raise the US $ 1,180 million in advertising revenues in the United States and Twitter US $ 1,160 Twitter. The marketing firm based in New York (USA) concludes that the social network Facebook faces even more challenging challenges in 2018. “Regulators have indicated that it is likely that the company will face stricter scrutiny on issues such as user privacy and tax declaration policies, ” says eMarketer.

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