Facebook Ad Revenue is Down & TikTok is Up; Now What?

/ 5 minutes of reading

The pandemic brought about so many changes in the digital world, most of which urged everyone to clean up their digital presence management. We all became acutely aware of the pitfalls of having a website that had outdated information or just plain didn’t work on mobile and tablets – and even some desktops. To that end, there are still a lot of businesses that have not updated – and it’s costing them big. 

Before diving into Facebook & TikTok, let’s pause for a moment and reflect on the past 3 years in bullet point fashion.

  • Pandemic sets in, work from home begins
  • Web traffic in every avenue is up; because we’re at home 
  • Ad revenue goes down with Google / Facebook / LinkedIn 
  • Businesses see that their website is now = their store front 
  • Urgency is created, some update their websites realizing this fact, ad spend slow
  • Some businesses are complacent or move into a holding pattern, slow/no ad spend  
  • Pandemic eases, work from home continues by in large, ad spend starts to increase 
  • Businesses that invested in their digital presence see the payoff 
  • Businesses that did not invest grew in very limited capacity, if at all 

So, what this all points to is that society and evolution are charging full speed ahead into digital. The government is investing billions to make sure everyone has access. Internet access has become like having access to water. As this trend continues, new market segments will increase and as always the battle for your attention will increase from platform to platform. It’s not good or bad, it’s just the way of life we’ve come to after all this fuss. 🙂 

If you are a business that is seeking growth and you see that ad spend is down on a platform that serves you well, do not pull out. Do not cut spend. Do the opposite. Why? The cost and competition for impressions and connections drops and provides you the opportunity to gain market share. It doesn’t matter what vertical you are in, for the most part. The point is, keep going. Now, you make think, “well sure, I’m reading this on a page of a marketer, I expect this.” You might, but most did not expect it. In fact that’s why ad revenue is down. Facebook isn’t evaporating just yet, nor is Google. So – just like with investing, buy the dips – or when the revenue is down on your platform of choice, kick up the boiler pressure. 

So, now that we’ve covered that – let’s talk about Instagram + TikTok + Google. Yes, Google. As it turns out, Gen Z is now turning to TikTok for answers. Is this safe? Who knows. We know who owns TikTok, so you be the judge. And, as we all may know – the kids are the ones that dictate where their parents spend their hard earned money. So, let’s reel this in. A Gen Z person “researches” something on TikTok, then voices their need to obtain it. After which a short dialogue about where said item/service was seen. Then, the parent creates a TikTok account and now you have multiplicative growth, just like Google experienced. 

Who knows how the algorithm works at TikTok, and does it matter? Does TikTok? Maybe. Maybe not. Google has decades of data that it’s constantly changing algorithm taps into and gives us results for our searches. TikTok is on the other hand is not that old. So, it lacks the data. It lacks oversight in ways that Google may not. In the US we have rules and regulations to help consumers have a fighting chance against the big dogs of silicon valley and that’s still lacking- and always will be. This is because the very people that we’re asking to be fair are writing the software, so most of what is protested about digital practices still occurs through other channels. So, stay vigilant my friends. Mainly, be aware that every one of these companies is using your data, likes, interactions and so on to essentially sell you goods/services and know your patterns. Some are OK with this, some are not. 

After all that, the majority of us will give up our “privacy” to use an application that helps us navigate the digital world a little easier, and it’s ok. Unless you are doing something inherently wrong, who cares if they know when you go to work or come home, or what brands you like? If you are in a category that dislikes “tracking” chances are you are on a flip phone and reading this on a desktop. We all have different views, wants and needs – and that’s how it should be. 

If you’re unsure about what to do in terms of your website, digital presence management, ad spend or otherwise, we’re here to help. That’s what we do. If you are building houses, we’ll come to you when it’s time for us to build one. If you are a doctor, we’ll come to you when we need healthcare. If we ever get a speeding ticket, we’ll call a lawyer to help us out. Why? Because that’s what you do. Digital is what we do, so trust us. We know what’s at stake and we’re set on diligence, honesty, transparency and progress. 

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If you have any questions or are ready to begin, we’re here and ready to help you on your digital journey. Need help? Drop a line to hello@sevenind.com

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