LATEST NEWS

Facebook's Advertising Business Is A Mess

You can see it in the numbers and read it in the quotes: Facebook's advertising business is a mess.

The numbers: Facebook's advertising revenues shrank from Q4 to Q1, but that's normal; industry-wide, advertisers spend a lot leading up to the holidays and don't spend much after them.

What's actually a warning signal is that while Facebook's business is still growing year-over-year, overall, it's growing at a slower rate every quarter. It's decelerating. That's not what you want from a company that is about to IPO at a $100 billion valuation.

The quotes: Part of the problem with Facebook's advertising business is that its customers – advertisers – don't know what they are getting for their money.   In separate articles posted today, the WSJ and CNET have all kinds of quotes from these people about their dissatisfaction:

  • WSJ: "The question with Facebook and many of the social media sites is, 'What are we getting for our dollars?'" said Michael Sprague, vice president of marketing at Kia Motors Corp.'s North American division.
  • CNET:  David Smith, the CEO of digital agency  Mediasmith : "Facebook just doesn't seem to care. They're still trying to grow this thing. The question is, do they want the big bucks?"
  • CNET:  Mike Parker, the co-president of U.S. operations of  Tribal DDB , talking about his frustration with Facebook: "For the longest time, we've been trying to call Facebook to do business with them and there's nobody to pick up the call," said Parker. "...They're very focused on the consumer experience, and less focused on revenue and working with advertisers."
  • WSJ:  "There's a pretty high degree of animosity right now with Facebook because they have become so powerful," said Rob Griffin, global director of product development at Havas Digital, a unit of  Havas

The ultimate problem: Facebook doesn't really have a great ad product to offer marketers.

We've covered that problem in detail, here: One Thing Is Clear: Facebook Hasn't Figured It Out Yet

Also: It's not clear to us that Mark Zuckerberg particularly cares if Facebook has a great ad business or not >>



More From Business Insider

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.

DON'T MISS

  • Droom has made auto trade a breeze

    Its website lists everything that has a wheel and a motor - from bicycles and super bikes to luxury cars, planes and yachts. …

  • How Hike has taken on global competitors

    The messaging app company had zero users around January 2013. It crossed 35 million users in August 2014 and in January this year claimed over 100 million users. That is a mind-boggling number for any ... …

  • "Internet retailing of books is a wonderful development"

    Richard Charkin, Executive Director, Bloomsbury Publishing, talks to Sapna Nair Purohit about the changing publishing landscape globally. …

  • "India has a competent enough system to check quality standards"

    The $25-billion Indian pharma industry is going through intense regulatory scrutiny. Foreign drug regulators such as the US Food and Drug Adminis-tration (FDA) and EU's European Medicines Agency have increased ... …

  • Final Push

    GST infrastructure is a work in Progress. The government will have to burn the midnight oil if it wants to meet the April 2017 deadline. …

  • TRAI'S Web of Confusion

    The telecom regulator must first simplify its processes before dealing with net neutrality. …

  • Shop Till You Drop

    Once the model shops and establishments act comes into force, shops, malls and cinemas will be allowed to remain open 24x7. But does it make business sense? …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    12.55+0.03+0.24%
    JPASSOCIAT.BO
    63.05+0.70+1.12%
    SPICEJET.BO
    168.95+11.70+7.44%
    VEDL.BO
    592.05+40.00+7.25%
    UFO.BO
    18.00-0.10-0.55%
    SUZLON.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    57.60+9.60+20.00%
    NTCIND.BO
    70.70+11.75+19.93%
    METALFORGE.BO
    30.45+4.95+19.41%
    RDBRL.BO
    11.99+1.89+18.71%
    NFIL.BO
    81.80+12.50+18.04%
    EMKAY.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    10.04-1.33-11.70%
    RATHIGRA.BO
    16.40-1.50-8.38%
    FILTRA.BO
    51.50-4.25-7.62%
    LOTUSCHO.BO
    48.10-3.95-7.59%
    COROENGG.BO
    158.35-12.90-7.53%
    GNFC.BO
  •  
    Recent Quotes
    Symbol Price Change % ChgChart 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
  • Recent Quotes News

    •  
      Sign-in to view quotes in your portfolios.

    Yahoo Cricket