Facebook, amidst the Wall Street predictions about its projected earnings for the Q3FY14, have might got a blow with the recently released research by Forrester Analyst Nate Elliott. In an open letter to Facebook CEO Mark Zuckerberg, he has stated “Facebook is failing marketers”.
The statement at first seems weird considering the USD 4 Bn revenue collected from advertising last year and the way it is being looked upon by the marketers as an access provider to the largest audience in media history.
However its not a vaguely cited one. In the letter, Nate has mentioned about a survey, conducted by Forrester regarding online marketing satisfaction. It includes 395 marketers and eBusiness executives at large companies across the US, Canada and the UK, which stated that Facebook creates less business value than any other digital marketing opportunity.
As per the findings, the top most considered social advertising sites viz. Youtube, facebook, Twitter and Google Plus, form the bottom of the graph, while the LinkedIn and mobile were found dangling just at the edges of the bottom. The leaders were the On-site ratings & reviews and Email Marketing channels, which in the past few years has taken the form of old and traditional way of marketing, but still the most satisfying.
The open letter gives two reasons for less satisfaction with Facebook. Firstly, there is less focus on driving genuine engagement between companies and their customers and secondly, the company is not good enough at the pure advertising business, which it currently focuses upon.
Also, in the letter Nate has warned Facebook to quickly refocus its efforts once again build bridges between companies and their customers, before more marketers act on their growing dissatisfaction and start earmarking an increasingly smaller budget share to the company.
According to Frank E., Director Global Social Media at Citi, the shift to mobile has made Facebook pages virtually obsolete, thereby reducing the ability of Facebook Apps to gain traction in recent years. Also, he was quite surprised that it has taken this long for Forrester to attack the performance of Facebook. “Social has always had deeper impacts in the relationship organizations have with Customers and employees. We are just at the point where firms such as Forrester are noticing in a deeper fashion”. Frank added.
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