On the heels of my article last week about Facebook advertising, we learned that Facebook has experienced a decrease in advertising revenue. On their updated IPO, Facebook reported a decrease in advertising revenue from Q4 2011 to Q1 2012. The decrease was substantial as it fell $70 million from $943 to $872 million.
The update to Facebook’s IPO does not mention a particular reason for the decrease, but the recent release of the advanced tool set for advertisers would make us tend to believe that advertisers were not happy with results. The fact that Facebook still generated $872 million in ad revenue means that Facebook still has a viable advertising quality to it or people are still ineffectively spending their advertising budgets.
Again, I go back to our stance on Facebook advertising, “Do your homework, spend wisely, and know when to pull the plug.” There can be real advantages, depending on your industry, to advertise with Facebook, but poorly researched spending in Facebook advertising can hurt your business.
Does your business have a Facebook advertising success story? Share it with us below. Want to learn more about how to better advertise on Facebook? Contact JASE today and let’s talk. As always please feel free to share this article with friends.
image credit: babyben on flickr