Facebook, Meta, and the Future of Social Media

Woah. Facebook just went Meta. 

If you’ve paid attention to the news recently, you may have heard about Facebook’s rebranding. Let us clarify this right off the bat, the parent company that oversees Facebook, Instagram, WhatsApp, and Oculus has rebranded itself as “Meta”, not Facebook the website/app itself. Do not worry, you will not be posting any updates on Meta.

This rebrand came after Facebook received increasing pressure particularly from whistleblower and former Facebook data scientist, Frances Haugan, who filed complaints that the social media platform’s empire knowingly amplifies hates, misinformation, and political unrest. 

Then, Facebook and WhatsApp’s infamous day-long shutdown increased speculation that the company was scrubbing unscrupulous records. Facebook, of course, denies this. 

So, what the heck is going on and what does that mean for those of us in marketing and advertising?

Facebook’s Algorithm.

In a previous blog, I wrote in-depth on Instagram’s algorithm. If you wish, you can read it here. Suffice to say, it’s no secret that social media platforms do everything they can to keep consumers on their apps and websites. It’s likely you have seen the research, or perhaps even the documentary The Social Dilemma, that gives details on how these companies operate. Social media gets consumers hooked, keeps them engaged for long periods of time, gets them to come back frequently, and make the company increasing amounts of money. Your time is up for sale and a slot machine of entertainment is at your fingertips. Unfortunately, as much as we know about media, the efficacy of such practices and their effect has only recently begun to be explored. 

This is where Frances Haugen’s testimony comes in. Appearing before the US Senate Congress Committee on October 5, 2021, she uncovered a number of issues with Facebook’s dealings, having previously leaked files of the companies findings. You can read her article on the subject in a Wall Street Journal article, or, if video is more your speed (looking at you Gen Z), you can watch her 60 Minutes interview. The summary is this – that there are two competing factors at work: what’s good for Facebook and what’s good for their consumers. Haugan found the data showed that Facebook often amplifies hate, enables misinformation, creates division, and aids in political unrest. Studies also found that Instagram is harmful to teenage girls. This is because, generally speaking, negative and divisive content performs better than the opposite. And because this is the case, the algorithm works to enable such content. Rather than protecting its consumers, Facebook promotes the thing that will get the most clicks.

At The Post and Courier, we’ve found this troubling statistic to be true. When boosting stories from the paper, we noticed a trend: crime pieces perform better than anything else. In fact, each week our best performing stories are almost universally about crime or policing. It creates an ethical dilemma for a company. Do what’s best for the consumer or do what’s best for the bottom line? And where do you draw the line? Can we create a more gracious, optimistic, and equitable society, or do we work to sow division by promoting what audiences want to click on? Questions worth pondering for any advertiser. 

On the Metaverse

One last thing of note. Facebook also introduced something called the “Metaverse”. You can watch the entire 75 minute video on their website if you like, but believe me when I say it’s straight out of Aldous Huxley’s Brave New World, or for the modern reader something out of a film like Wall-E. Facebook’s parent company, now named Meta, is beginning to focus on the future of the internet in Virtually Reality (VR) format. Instead of going into the office or talking through a 2D screen on Zoom, they are working towards a future where people will hold meetings in a 3D VR world. Meta announced the advent of this Metaverse, an augmented reality experience where you can also meet friends, play games, watch movies, and generally spend time in this virtual world. 

Mark Zuckerberg’s postings got immediately panned with comments like “this is an episode of Black Mirror I swear.” But, interestingly, Adam Mosseri, the head of Instagram, got much more favorable comments on his less aggressive video post. Regardless, it seems as though the future is here, however long it takes to actually become fully realized. We certainly don’t know the implications of this new interweb, but it’s best to start preparing now.

Get ready, it’s a scary world out there.

 

Instagram Algorithm Changes And How It Impacts Business

On June 30th the Head of Instagram Adam Mosseri announced publicly that Instagram was “No longer just a square photo-sharing app.” The news made waves around the internet, but should be no surprise to anyone who has paid close attention to the social media’s progression. With the seemingly new trajectory we felt it’d be advantageous to look at how the app has changed and where it’s going.

2010: Instagram’s Beginnings

Over a decade ago Instagram launched with it’s inaugural photo of it’s cofounder’s dog. 10 years ago Instagram was a chronological square-photo app, posting was simple, and the user base rather niche. Remember photo borders? Yeah things have changed a lot since then.

Within a few years Instagram exploded and became the social media heavyweight we all know today. As the years advanced the app changed as well. In 2016 for instance, rather than having posts appear chronologically, users began to see them ranked by importance. This was the introduction of Instagram’s algorithm.

The algorithm, still in use today and helps users and advertisers make use of targeted interest data. In a recent video Mosseri talked thoroughly about how exactly this works. Most importantly he noted that it functions differently across different sections of app (Posts, Stories, Explore, and Reels). A simplified summation is that Posts and Stories show videos and photos from people you follow, while Explore and Reels send these from you accounts you don’t follow, but that match your interests. IE if someone who has similar interests as you engages content, they can predict you likely will as well. So why more video?

2021 and Beyond

Data drives everything nowadays. Today Instagram ranks fourth* in Social Media apps behind Facebook, Youtube, and Whatsapp. As of April 2021 its monthly worldwide users was well over one billion. However the landscape is greatly changing. 

Look at for example at the usage of apps by US teens. From 2016-2019 Instagram slowly grew within the demographic. However, in 2020 something happened that dropped the percentage of by 10%: TikTok. 

With the rapid rise of TikTok, Instagram in 2019 introduced “Reels” a vertical discovery style video addition to the app in order to compete. Again, Reels shows the viewer content they aren’t necessarily subscribed to and digs deeply into its algorithm to send you content it thinks you might like. Youtube released their version a “Shorts” in March of this year.

So how do these changes affect your business’s marketing plan? 

For one, video advertising is becoming increasingly viable on Instagram. Businesses can show ads in all sections of Instagram so it’s worth considering how to advertise in each. As the app changes it’s important to adjust your marketing plan accordingly. For Posts and Explore you’ll want to produce horizontal content while for Reels and Stories you’ll need to create vertical videos. Our previous content on stories is helpful for understanding what exactly to post as well.

End Card

One new update is “Instagram end card”. After being showed an ad in “Stories” advertisers now have the opportunity to include second story which allows viewers to see your recent organic posts. It’s worth checking this box EVERY time as it give the consumer another opportunity to see your product and view your business. 

Organic

Beyond all these things though the changes in the app should change the way you use it broadly speaking. Even though the Tik Tok/Reels target audience is much younger and perhaps less likely to buy your product, these audiences are the future. Beginning to think through how you can advertise to them will only help you improve you ROI in the long run. Try your hand creating a Reel, do some research scrolling through the section. Remember too that organic is always free, it doesn’t hurt to learn! And lastly as always, if you need help getting any of this set up you can always reach out to our marketing team at King + Columbus. They’re an excellent resource for getting any of your marketing plans off the ground.

Notes: *We’ve grouped Facebook and Messenger together as they are technically the same provider.

 

social media advertising: facebook vs instagram

Social Media Advertising: Facebook vs Instagram

Social Media Advertising: Facebook vs Instagram

The year 2020 has shown us that social media advertising is here to stay, and that allocating your budget to successful campaigns with a high ROI is more important than before. Many times businesses feel the return on print advertising can’t be accurately measured. The beauty of marketing via social media channels is the variety of insights provided that can be analyzed to continually improve your campaigns to achieve successful results.  

Gone are the days where social media was solely for social interaction. In fact, research shows that 52% of all online brand discovery still happens in public social feeds (organic & paid). This suggests that the majority of consumers use Instagram and Facebook to investigate a new company before even visiting their website! 

Build brand awareness and loyalty by engaging with your followers and curating a feed that gives consumers a feeling of trust and relatability. Of course this means understanding the algorithms and the importance of curating captivating content. Let’s break down common questions surrounding social media advertising

 

What are the benefits of social media marketing?

Social media is proven to increase brand awareness, inbound traffic, conversion rates, customer satisfaction, brand loyalty, and most importantly is measurable and cost effective.

 

Audience Growth: Facebook v Instagram

Of all social media platforms, Facebook and Instagram are proven to be the most interactive and can produce the best ROI. However, the benefits of each are very subjective and depend on which features are being used, your industry, audience, and other factors.

  • Facebook
    • Facebook launched in February 2004, and introduced Facebook Ads in November of 2007. The platform was originally created to help people stay in-touch with family and friends and became an advertising powerhouse with the launch of Facebook Ads and Business pages in 2007.According to Statista, Facebook reported almost 1.79 billion daily active users and overall, daily active users accounted for 66% of monthly active users.  This number continues to grow by 9% compared to the year before, despite the speculation that Facebook is “dying”. 
  • Instagram
    • Instagram launched in October 2010 and is a younger platform focused on storytelling through images and now instagram reels and stories. Instagram ran its first ad in November 2013. By 2017, Instagram was averaging more than 2 million businesses with purchased ads, compared to Facebook’s 5 million. 
    • However, according to Statista, Instagram has over 500 million daily active users out of 1 billion monthly active users, making Instagram a powerhouse when it comes to audience engagement.

 

Audience: Facebook v Instagram

Facebook may not have the highest engagement, but because it is the oldest platform the audience is huge, with more than 2.45 billion monthly active users. Facebook differs from other social media platforms that show strong trends in users by age. The average age for a Facebook user ranges from 18-49, with little variance in between. However, Facebook is the most popular social network among seniors and the majority of the users are in the United States.

Of this 1.79 billion daily users, the ad audience reach for the U.S. is only 183 million people. This audience size has also seen a decrease in the past year from 3% to .4% - a fairly significant dip.

Instagram’s growth continues to be studied and monitored by marketers. In the United States, the network reaches over 37% of the population. The global audience is diversified, with only 11% of Instagram users represented by the U.S. eMarketer estimates 2020 will reveal a growth of over 5% in the U.S. compared  and anticipates this number to continue growing at this growth rate. 

More adults use Instagram than you would think, with 37% in 2019. The network is also significantly more popular amongst the younger generations. 67% of users are between the ages of 18-29. Here’s a breakdown from Hootsuite:

    • 18-27: 67%
    • 30-49: 47%
    • 50-64: 23%
    • 65+: 8%

Another important and interesting insight to Instagram’s audience is that the gender demographics are pretty even - 48% female and 52% male. 

All of these statistics are important to research when considering your buyer personas. You should always analyze your business’s audience and design your strategy based on this information rather than the overall network statistics.

 

 

Brand engagement: Facebook v Instagram

It’s no surprise that consumers rarely engage with branded social content compared to all content on a social platform. A study by Forrester revealed that on six of the seven social networks, the brands studied had an engagement rate of less than 0.1%. So, between Instagram and Facebook, which platform has the highest engagement? Depending on the blog you read, you’ll render different results. According to the Forrester study, one platform stood out the most: Instagram.

Facebook launched Facebook Business Pages to support the Facebook Ads launch in 2007, and now has over 60 million business pages. 39% of Facebook users that follow Facebook Business Pages do so because they want to receive special offers. Interestingly enough, the average organic reach of a Facebook post is only 6.4% of the Page’s total likes. Statista reports that  in 2019 the social network’s marketing spending reached almost 9.9 billion U.S. dollars, an increase of over 2 billion U.S. dollars from 2018. However, despite this level of spending, the engagement on Facebook with paid branded content is still under .1%. 

A study by Merkle reveals that ad spending on Instagram is 23% higher than facebook. What is driving this shift in ad spending to Instagram’s platform? Story ads and higher engagement.  

 

 

Types of Ads: Facebook v Instagram

Facebook offers Facebook Ads Guide for types of ads. These ad types include: Image Ads, Video Ads, Carousel Ads, and Collection Ads. Facebook provides thorough research where their teams explored the effectiveness of ads based on engagement, exploring text, timing, and format considerations. You can find some of this research here. Facebook’s targeting tools are considerable, and allow you to narrow down by purchase behavior, interests, location, demographics, Facebook communities, and more. You can create Core, Custom, and Lookalike Audiences for your ad delivery to increase relevance, thus leading to higher ad engagement.

Instagram ad types consist of feed posts and story ads. Both types look just like regular posts and stories, but are labeled with a “Sponsored” label and include a call to action button with options to send to your messages, website, Instagram profile, etc. According to AdEspresso, the average engagement rate for Instagram branded posts is 4.3%, compared to Facebook’s 1.5%. 

The user experience for Instagram story ads shows most users don’t realize they’re seeing an ad play back to back, revealing a smooth experience that isn’t too interruptive. Additionally, because an Instagram story takes up the entire screen there is no competition with other content and when targeted correctly, the experience feels organic. Therefore, consumers are more likely to engage.

Both are measured by reach & impressions. Reach is the number of unique views on a post. Impressions are the total number of times a post was seen. Both metrics provide helpful insights to your ad performance and allow you to make adjustments to improve your ad engagement overall.

 

 

Cost: Facebook v Instagram

A study in 2019 found that the average CPM for Instagram is $5.14 per 1000 visits. While the average CPC for Instagram ads is between $.20 and $2.00. Compared to Facebook’s CPM of $5.12 and CPC of $.80, Instagram wins again in this category. This study is a broad estimation, and certain factors like your target audience will affect these costs. Let’s discuss a few factors that affect the ad costs.

  • Ad Relevance - Facebook takes into account the relevancy of your ad amongst your selected target audience and factors this into the cost of the ad. Facebook and Instagram provide a relevancy score that changes while your ad runs. If you receive high engagement, your score will increase. If consumers are hiding your ad, your score will go down. A/B testing is a great way to determine what is relevant to your audience. Remember to only change one factor so that you receive concise data. Similar to a Google algorithm, the more relevant your content is to your target buyers and ad audience, the less expensive your ads will be.
  • Target audience - If you are targeting a popular audience that is high-demand, the cost will fluctuate. 
  • Time of year - like any retail or sales strategy, the time of year will determine the cost of the ad. Popular times of the year, like holidays, will affect the ad cost.
  • Ad Run Dates - Obviously, the longer you run an ad the more your cost will increase. The average ad doesn’t necessarily need to run for a long period of time. Assessing your impression and reach goals will help guide you to determine a reasonable ad length and price.