With Facebook representing between 9% and 25% of US web traffic (depending on which metric you go for) and ranking on Alexa as the #2 site in the world with 42% of global users visiting, it’s almost impossible for the platform not to have a significant resonance with advertising professionals as it is positioned to take on Google and other choice media properties in the US and globally.
But while Facebook’s scale and reach into the market has grown exponentially, its value as an ad channel has been less convincing than what one would assume from their numbers around user engagement and traffic. This has led to a couple of defining moments that Facebook’s leadership had to address in order to advance as a blue chip media property. Two large struggles they’ve encountered are last year’s decision by GM to withdraw from Facebook advertising, and the second was the extremely difficult IPO, which had investors and the markets openly calling out Facebook’s uncertain routes towards Google-sized revenue generation, both on the Web and in Mobile.
Since then, Facebook has shown a great deal of focus around addressing the effectiveness of their platform for advertisers. At Roundarch Isobar, we see several areas of concentration that have allowed Facebook to rapidly and effectively align their offerings to address these issues:
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