Unless you’ve been living under a rock for the past month, you should probably be aware that some major changes have been taking place on Facebook.
Our Social Network overlord, Mark Zuckerberg, announced that the algorithm that we’ve all come to know and love, is going to change completely.
People > Businesses
And with this change, we’re about to enter an age where the Facebook algorithm favors content from people over businesses.
So what does this mean for businesses advertising on Facebook? Say hello to much higher prices! It’s been predicted that the cost for advertisers will rise by 79% this year.
Read on as we break down why costs are going to be increasing, and the implications this could have for you and your small business:
How FB’s Algorithm Change Will Increase Paid Ad Cost
Wondering why the algorithm change is going to bring higher costs? Think about the current situation for a second.
Mark Zuckerberg predicts that with the Facebook algorithm changes, time that users spend on Facebook will decrease, but ad density will stay about the same. You don’t have to be an expert in Economics or Supply & Demand to realize this equation doesn’t favor advertisers.
Less exposure to users + the same amount of advertisers as before = more competition, and unfortunately, higher prices in order to reach your audience.
What Does This Mean For Small Businesses?
So what does this mean for you? If your business has deep pockets, all you have to do is up your spend, but that’s not the reality for most of us.
But if you have a small business, you have to get a little bit creative with your advertising and social marketing campaigns in order to stay competitive in this ever-changing digital marketplace.
How To Stay Ahead of Rising Ad Costs
Check out these tips and predictions for ways to overcome the rise of Facebook advertising costs:
Switch Up Your Strategy
Facebook is changing and if you don’t change with it, you could be left behind. Your tried and true methods may not work anymore, so try out something new:
- Test out new strategies and edge out competitors that haven’t evolved to the changes. Try targeting more niche audiences with less competition.
- Switch up the content you share to appease the Facebook algorithm gods. That could mean featuring content that focuses on connections rather than blatant advertising. Or maybe this could mean sharing more video advertisements.
- Try out using Facebook Messenger for your business’s advertising. Messages on Messenger have 70% open rates – it can’t get much better than that in terms of ad exposure.
See the new Facebook algorithm as an opportunity to explore new advertising strategies, and to edge out your competitors that may not be adapting to the changes.
Look Outside of Facebook
Jump on the Instagram bandwagon if you haven’t already. Users are likely to abandon Facebook in favor of its younger, more attractive sister, Instagram.
Unlike Facebook, it’s still possible to achieve organic reach on Instagram – something that’s almost impossible on Facebook nowadays. Just a note: Instagram Ads run through Facebook Advertising (since Facebook owns Instagram), but you have the option to create ad sets that run exclusively on Instagram.
Look outside Facebook-Owned Social Platforms
There are several other blossoming social media platforms for you to expand your advertising campaigns to. Try out LinkedIn, Snapchat, Pinterest, or any of the other social media platforms out there. As users leave Facebook, these other platforms are likely to become much more popular. Jump on other opportunities while costs are still low.
Change Can Be Good
So there you have it. Changes are definitely happening on Facebook, and costs are going to rise, but it doesn’t have to be a bad thing. These changing times are the perfect opportunity to try out new strategies and edge out your competitors that aren’t doing the same. Whether that means testing out new strategies on Facebook, Instagram, or some other platform outside of the Facebook dynasty, your business can still compete amongst rising advertising costs.
Need help with your paid social media? Our experts can help you create a strategy to stay competitive in the digital world. Contact us today to get started.