It has already been over 12 years since Facebook was launched by Mark Zuckerberg! But it was not until 2006 that the platform opened up to the rest of the world by allowing anyone with an email address to create a Facebook account. Today the service has nearly 1.71 billion active users every month. The giant social network continues to amaze us with its growth and the commitment of its users around the world …
Over the years, the social network has evolved a lot while remaining faithful to its main mission to connect the planet. In this article, I return to the spectacular growth of Facebook as an advertising platform in order to imagine what tomorrow will be like for all companies that use or do not yet use the media to acquire and retain their customers!
2006-2016: 10 years of digital generation
On the occasion of our 10 years, find a video on the evolutions of digital in the last 10 years.
Back to the beginnings of Facebook advertising
Facebook flyer and Flyer Pro
Did you know that the first Facebook ads were “flyers” on the Facebook home page. Advertisers could target universities for $ 10-40 a day. These flyer ads were controlled by Facebook, they were mainly used in student life to promote parties and events on campus.
Facebook then developed its Flyer product by offering a CPC model called Flyers Pro. Advertisers could set a maximum CPC and target platform users based on gender, age, geographic location, etc.
Partypoker.com, Apple and Victoria Secrets
According to Kevin Colleran, Facebook’s first salesperson in 2005, Facebook had started selling ad slots to certain companies. Eduardo Saverin, one of the co-founders of Facebook, has also established several CPA (cost per acquisition) partnerships for Facebook with poker sites such as partypokers.com.
Apple and Victoria Secrets were also among the biggest advertisers on Facebook in 2005. At the time, Facebook offered these companies to sponsor their own group on the platform.
Facebook for Mobile
In 2007, after the opening of its service, Facebook released the mobile version of its website. This version allows users to upload photos directly from their phone and send messages to their friends. Shortly after, in April 2008, Facebook launched Chat. Facebook will also create a marketplace for buying and selling with friends. This market place still exists, it was sold to Oodle in 2009.
The birth of Facebook pages
This is a masterpiece for Facebook which now offers all businesses to create a page for free. We are witnessing the birth of Facebook Ads and Facebook insights. In 2009, two years after launching the pages, Facebook gave companies the opportunity to create and manage their online advertisements to generate engagement. In order to convince more advertisers, Facebook will also offer a range of new targeting options. The company’s revenue explodes to $ 777 million.
Facebook Sponsored Stories
In 2011, Facebook gave companies the opportunity to promote user actions on the right column. Facebook will also improve the news feed (which appeared in 2006) to highlight the most interesting publications, pages loved by their friends or recent publications. These changes will greatly benefit announcements on the news feed.
We are in 2012, two years after the release of its mobile application Facebook released the Sponsored Stories on the mobile. It’s been an exceptional year for Facebook buying Instagram and becoming a NASDAQ listed company.
What does Facebook have in store for the next 10 years?
Since 2013, Facebook has been very active in the advertising field. New targeting such as the lookalike makes it possible to reach users similar to its customers, Facebook remarketing is part of the arsenal of almost all marketers, video is omnipresent on the news feed, the “lead ads” format has made his appearance. The figures speak for themselves, between 2014 and 2015, Facebook’s advertising revenue increased by 59%, mainly thanks to mobile advertising. What does Facebook have in store for the next 10 years?
The internet advertising market
According to a PwC report, the internet advertising market grew by 20% between 2014 and 2015. Facebook is well positioned to benefit from this growth given that mobile advertising revenues increased by almost 66% vs 5% for the desktop. Users are starting to spend more time on mobile while advertising spending is even higher on the desktop. We can therefore expect a catch-up of investments in mobile which Facebook should greatly benefit for the next 3 to 5 years.
As we have seen, Facebook took a long time before starting to monetize its mobile audience and for good reason since a study posted by Facebook and IHS Technology demonstrates that the majority of mobile advertising will be native by 2020. According to the study, almost 63.2% of display advertising on mobile will be native. These advertisements will be served by applications such as Facebook and Instagram but also by a growing number of third-party applications, hence the growth and development of the advertising capabilities of the “Facebook audience network” which allows advertisers to distribute publications. within third-party applications using Facebook Ads.
This trend is not surprising when we analyze the growth of users who block mobile ads. According to a study by KPCB, between 2014 and 2015 there was a growth of almost 94% in the number of users of Adblocking software on mobile, a real threat for the media who turn to native advertising to improve the average click rate and reduce the frustration of pop ups.
Local advertising solutions
According to one study published by BIA / Kelsey, very small businesses invest more on social networks than on other media in the USA. This heavy trend is a good reflection of Facebook’s efforts to offer advertising products adapted to this market segment. Since the creation of the pages for businesses, Facebook has greatly facilitated the promotion of its page to recruit fans and the “boost” of a publication on its page. In two minutes, you can now enter your credit card number and promote your publications. Since the significant drop in the organic reach of posts in 2014, it is not uncommon to see companies “boosting” all their publications on the platform.
More recently, the introduction of “local awareness ads” has enabled merchants to place ads in a radius around their point of sale. Over the next few years, it would not be surprising to see more local advertising encouraging users to click on the ad to call the company (and yes, call!). According to an Invoca study, 75% of consumers say that a phone call is the quickest way to get a response from a business.
A new form of advertising
We can’t finish this article without mentioning M, WhatsApp, or integrated messaging on Facebook pages. A product division is even dedicated to messaging products at Facebook!
Since the takeover of WhatsApp in 2014 for 19 billion dollars, we note many evolutions on this front: Messenger and whats app dominate the chat market in front of WeChat, Facebook pages have a messaging interface to chat with customers and prospects quickly, personal assistant M is fast becoming a new way of discovering content and using your mobile.
These new products are full of opportunities to capture user intent in a mobile context. Facebook already knows where you live, where you work, the weather, what you and your friends buy, eat and where you travel. By combining this data with your intentions, Facebook could offer you products and services directly within its messaging system. Imagine being able to discover restaurants on Messenger by asking M a question, ordering directly on Messenger without having to browse a website for 10 minutes. All your banking information would be managed by Facebook. The potential is immense.
Towards the end of Facebook?
Since 2004, Facebook has been innovating at high speed, advertisers have followed trends over the years and increase their investments on the platform. If Mark Zuckerberg stays in charge, Facebook may well become the internet of tomorrow. A hyper contextualized platform at the center of all social and economic relations. The time we are currently spending on the mobile app is already in itself, incredible. You could say that Facebook knows how to grow an audience! The 2 billion users are not so far away …