OK, so the IPO got off to a rocky start, but the Facebook viability debate rages on. A recent feature on NPR’s cool Planet Money series, “For $75, This Guy Will Sell You 1,000 Facebook ‘Likes’” typifies the challenge that Internet mega-players like Facebook have in their efforts to portray themselves as a credible advertising vehicles.
One of those elements revolves around registration. Some say that getting information about users is the Holy Grail because it creates a sales environment where every inch of America can be targeted, right down to the neighborhood, house, or individual.
That is, if the information and the person who entered it is being totally truthful. I can’t find any data about how many people lie about their Facebook lives. Some studies suggest that people are no more likely to stretch the truth online than in person, but it’s not hard to intuit that fibbing is prevalent on everything from dating sites to commenters on news stories.
So the big question surrounding Facebook is, how viable is it as an advertising medium?
On the NPR feature, they interviewed a company that will buy you “likes” – by the thousand, if you desire, to plump up how your brand page profiles. Why?
As they explained, because this “matters to television networks, which sell advertising based in part on the number of ‘likes’ they have.” Of course, Planet Money tracked down a country singer in Nashville who bought a slew of “likes” – mostly from Egypt.
Arbitron takes a lot of flack for all sorts of reasons, and yet, there is knowledge and inherent trust that the audience you’re buying is local and tuned in to stations that are under consideration. The demographic information they provide is rarely questioned.
On Facebook, even a brand with thousands of “likes” may have garnered them in any number of ways. And ultimately, isn’t the true test of whether an advertising medium is effective is whether the program leads to sales and customers?
If you’re buying ads on sites that have actually bought their “likes” or “fans” by the truckload, your marketing program is doomed to fail.
These days, it’s de rigueur to slam traditional advertising media in favor of hot, new digital models. But when those systems can be gamed or when the credibility of registrants is called into question, aren’t we really talking trade-offs here? The numbers mean nothing if attendance is low, sales are down, or no one is walking into the store.
Just asking.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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It turns out that, according to a new study by Consumer Reports, when asked what Facebook users do to protect their privacy 25% say they lie about their own personally identifiable information. And it wouldn’t be surprising to see that number grow — at 25% that’s nearly double it was the last time Consumer Reports asked that question just two years ago.
Thanks, Bill. I was looking for data like this when I was writing the post. While 900 million users is nothing to sneeze at, there are some definite kinks in the system. No advertising vehicle or measurement tool is perfect, but for those who continue to flaunt accountability, ROI, and other can’t miss metrics, the flaws continue to show up.
Hi Fred –
While radio is trying to figure out the whole “likes” thing…Warren Buffett just invested $142M cash in a newspaper company serving 63 markets in the South! He’s also given them a $400M loan to operate. (Funding for a new strategy that includes digital I would bet.)
Thought newspaper was dead, right? Buffett said “In towns and cities where there is a strong sense of community, there is not more important institution that local paper”. This is exactly what people should be saying about radio.
So while the industry tries to figure out the value of “likes”, don’t lose sight of the purpose of the business you’re in. Radio is about listeners. Don’t lose the personal touch only radio has. The best way to do this is start “participating” in a conversation that will “pull” people to you. Meet them on their turf and share.
https://paidcontent.org/2012/05/17/why-warren-buffett-is-buying-newspapers
Great advice, as always, Mike. The ability to nurture relationships is “the next big thing” for radio. Appreciate you contributing.