Facebook advertising has been very instrumental in assisting organisations to reach their campaign objectives, whether it’s to generate leads, increase sales or – alternatively – to drive traffic to their websites.
Part of the reason is that it’s one of the most cost-effective advertising tools, especially for a top social media platform which has such a powerful organic reach. However, if we think about the ever-changing state of technology, we can’t help but question the future of Facebook advertising and how this social media giant will stay relevant as well as competitive.
A Very Profitable Business
Facebook advertising’s worldwide revenue topped $84 billion in 2020. Just 11 years earlier, the company was earning $764 million in advertising revenue. The number of users has grown — by 2 700% since 2007, totalling 2.7 billion users in 2020 — but Facebook’s savvy approach to beating the competition and making itself invaluable to advertisers is what grew advertising revenue by 109 000%. However, the company – which also owns Instagram, WhatsApp and Oculus VR – is confronting major competitors. They include Apple and Twitter, as well as start-up competitors, such as Locals.com.