Let’s fact-check some of the claims being thrown around
for the current social media advertising crisis.
By Susan DeMatei
As 2023 planning kicks into high gear, one question frequently popping up is the viability of Meta (the company that owns Facebook, Instagram, What’s App and Messenger) and Google as advertising platforms.
The scrutiny stems from the fact 2022 has not been kind to the tech sector. The stock market saw seven years of gains erased in 10 months last year. The headlines are brutal, calling Meta a “risk,” a “loser,” or in what CNBC named a “death spiral.” Every other day, it seems, there’s news of another large marketer pulling out of the platform. Meta’s meltdown is shocking but not singular. Google went down 40% last year, Amazon 45% and Snap 80%. Add the absolute insanity with Twitter, and even the boldest marketer is wondering how much budget to attach to social media in 2023.
We must break down the causes of these market shifts to answer those questions and apply them to the wine business.
Just the facts, please.
Keeping politics out of it, let’s fact-check some of the claims being thrown around for the current social media advertising crisis.
It’s the economy’s fault.
When Google, Meta, Amazon and Snap missed their quarterly revenue goals, the response to shareholders was a chorus of “it’s not our fault.” Meta blamed “the uncertain and volatile macroeconomic landscape,” Google called it “the challenging macroclimate” and Snap cited “macro headwinds.” In short, inflation and joblessness are up, consumer confidence and home values are down, and supply channel issues aren’t helping.
Sounds reasonable: when people buy less stuff, there are fewer sales of stuff, meaning fewer advertising dollars for the people who make the stuff.
But are we really buying less? You might be