In Sean Duffy's latest Marketing Moxie column on Talent Zoo, he looks beyond advertising to explore the real value Facebook for brands.
Facebook and its investors depend on advertising to generate 85% of the social platform’s $3.7 billion annual revenue. That made GM’s retreat from Facebook last month particularly poignant for marketers and investors alike. The New York Times reported that “GM, the third-largest advertiser in the country, shut down its Facebook budget, about $10 million, saying that those ads were simply not doing enough to sell automobiles.” This has caused a lot of speculation over Facebook’s usefulness to marketers. I think it’s good that people question the role of online networking in their marketing efforts, but I feel that a lot of the current speculation is missing the point.