In the advertising market of the decade of the 10s of this century, the one that we are finishing (or perhaps the one that we already closed in December of last year), Facebook has been the story of great success in the advertising market.The social network, despite all its problems and all its reputational crises, has been growing and growing, trapping companies with the idea of ​​reaching consumers in a direct way (until zero day arrived and doing so in a organic became impossible) and positioning itself as an increasingly powerful player in the online advertising market. It was when they began to talk about the duopoly and how Google and Facebook increasingly shared the advertising cake. From every new dollar to the online advertising market, most of the revenue went to them.However, the story has had complications. The advertising boycott this summer was one of them, but also the reputation problems and the fact that their ads were not very memorable and flashy. Facebook has also been losing trust among users. Despite it all, and even in the harshest moments of the Cambridge Analytica scandal, Facebook has continued to connect with advertisers. He was one of the few players who did not experience a significant crisis due to the coronavirus crisis. For Facebook (and for Amazon), it was a crisis without a crisis .But is everything as nice as it might seem in terms of income? Or is Facebook about to enter a new phase and an especially complicated one? That is what could happen, or what will clearly happen if the latest analysis by The Wall Street Journal is taken into account .Facebook has peaked, it is concluded from the data they point to, and has run out of margin to continue maintaining the golden figures in the advertising market regardless of where they are.What’s happening: two realities .The Journal’s analysis points to two key pieces of information. The first point is that Facebook has more and more advertising. It may be that users when they come to see your feed feel that they are seeing more ads and that Facebook is only selling them things. The percentages also point in that direction.

The number of ads that Facebook is serving on its different platforms since the third Saudi Arabia Email List quarter of 2015 has been increasing at a rate of 30% per year, according to estimates that the economic newspaper shuffles.The second crucial point is that although the number of ads goes up, the prices of the ads go down. Starting in the second half of 2018, advertising prices have started to fall and 2020 shows the biggest crashes. In the second quarter of the year, Facebook served 40% more advertising, but it did so at 21% lower prices. Therefore, to achieve a certain amount of income, you have to sell more ads than you did in the past.What this entailsNot all this is explained because Facebook as a company has been able to reach the ceiling.

In the Journal’s own analysis they acknowledge that there are other possible explanations. The boycott would have done some damage, but also the fact that the key Facebook advertisers are SMEs and they are very affected by the coronavirus crisis.Prices have also fallen due to the pull of stories (which Facebook sells with lower prices) or because small competing social networks are growing more than Facebook (Pinterest did so in the third quarter to 58% compared to 22% for Facebook) .Still, these data point to a complex future for Facebook. The growth of ads on Facebook saturated a group of users, the youngest, who went to Instagram, cooler and with fewer ads, but owned by Facebook.

In the Journal they theorize that if Facebook compensates as a company by putting more ads on Instagram it could cause consumers to flee and spread the problem to all the platforms it owns.And, another important point, Facebook will not be able to repeat the play of Instagram. When the giant bought Instagram a few years ago, it managed to take over the emerging competitor and create a kind of replacement. Now, however, it is unlikely that he could make the same move, no matter how much income he has to buy other companies. The pressure from the public authorities, who have been assessing whether Facebook (and other large networks) is a monopoly throughout 2020, limits their ability to move.

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