Published on October 18, 2019
by Jim Flint
On a recent trip to NYC, I noticed Facebook had a Times Square advertisement—with an estimated annual cost of $1.5 million–that really wasn’t all that much about Facebook.
For a company with a market cap of well over $500 billion, it’s not a huge number, but not insignificant either.
While intriguing financially, the real piece to consider is the strategy. It’s worth noting what a digital company is conveying–on a static billboard of all things–just off the edge of Times Square.
In an era that will be remembered for how Facebook handles Trust and Privacy issues for their consumers and content creators–one in the same mind you–the answer can be found in Facebook Groups.
The next big thing–no doubt–is Groups. In the concrete jungle of NYC, Facebook advertises for people to join 35k other members in a group called “Big Tree Seekers”.
This move and the corresponding commercials for NYC minded “Dads and Daughters” helps out with the marketing side of privacy issues as people opt-in to different sections of Facebook with other, like-minded people. It helps us “trust” Facebook again in the safety of our carefully selected Groups.
It doesn’t solve for advertisers . . . yet. However, like most things Facebook it will monetize soon enough. So, marketers, agencies and dealers alike get ready, get set, and go ahead and create your Groups. Get people to join them. Then get ready to pay-to-play on the advertising front somewhere down the line.
1/ https://www.investopedia.com/articles/investing/022315/high-cost-advertising-times-square.asp