The History of Facebook Advertising
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How well do you know Facebook? Lots of marketers use the platform to promote their content and drive new business, but how good is your knowledge, really? Is Facebook advertising proving successful for you or your clients business? Facebook have made an incredible amount of changes to their advertising platform since 2004, creating a host of different options to target customers including – Lookalike audiences, Dark Posts and Retargeting ads. As Facebook continues to evolve the advertising platform presents marketers with a huge amount of opportunity to provide contextual advertising for dream segments of their customers. In this slideshare we set out to chart the evolution of Facebook as an advertising giant and what the future may hold for it.
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The History of Facebook Advertising
- 1. FACEBOOKTHE GROWTH OF AN ADVERTISING GIANT
- 2. SO, YOU’RE A MARKETER… Works at HubSpot About
- 4. We thought so too. Until we realised just how much we DIDN’T KNOW about their advertising strategies over the last few years.
- 5. I mean, did you know that the first way to advertise on Facebook was through ‘Flyers’ and they have a ‘Marketplace’ where you can buy and sell your stuff?
- 6. WE DIDN’T! So we decided to share their story with you because as marketers we need to closely watch the trends in advertising, and with Facebook being such a big player, we can’t afford to miss a trick!
- 9. Mark Zuckerberg launches ‘Thefacebook’ at Harvard University. It quickly starts to spread like wild fire.
- 11. The majority of revenue comes from ‘Flyers’ which are mostly purchased by students or small local businesses for $10-$40 per day who want to target an ad to a specific college campus. Source: Quora.com
- 12. Flyers are advertisements displayed along the side of the Facebook homepage and are controlled by Facebook.
- 13. They are mostly used by Facebook members to advertise parties or other social events on campus.
- 14. Theylooklikethis Image source: College Web Editor
- 15. Andmakeup mostofFacebook’s revenue for thatyear Image source: College Web Editor Theylooklikethis
- 17. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤400,000 $382,000
- 25. SURPRISINGLY, SOME MAJOR COMPANIES ARE ALREADY JOINING IN THE FACEBOOK ADVERTISING PARTY.
- 28. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤5 million $9 million
- 38. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤12 million $48 million
- 44. YUP!
- 48. FACEBOOK LAUNCHES THE MOBILE VERSION OF ITS WEBSITE
- 50. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤50 million $153 million
- 54. Theintentionisthatthose Pageownerswillfind waystospend money throughadvertisingtheir FacebookPage.
- 55. Facebookinvests moreintheirmobile strategyandnow allowsmembersto commentonFriends’ statusupdates.
- 57. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue 👤150 million $272 million
- 59. FACEBOOK BEGINS TO REALISE THEIR POTENTIAL FOR ONLINE AD DOMINATION.
- 61. Theyintroduce language and geographical based ad targeting toenticemore advertisers
- 62. Pageowners canset up and manage theirown adsforthefirsttime.
- 63. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤350 million $777 million 65 million
- 65. FACEBOOK RELEASES THE FIRST MOBILE APP FOR FACEBOOK
- 67. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤600 million $1.8 billion 100 million
- 71. Advertisers canchoose tohighlight particularuser actionssothatwe seetheiractivity inournewsfeed.
- 72. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤845 million $3.71 billion 350 million
- 74. INTRODUCES MOBILE ADS FOR THE FIRST TIME
- 77. Whenauserfriendsanotheruser, Likesapage,commentsonaphoto, listenstomusic,orplaysagame, a connection is written to the Social Graph,whichisthen providedasdataforadvertisers.
- 82. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤1.06 billion $5.85 billion 543 million
- 85. Whichhelp advertisersreach potential customers whosharesimilar characteristicswiththeir currentones.
- 90. Advertiserscannowcreate Unpublished Posts orDark Posts thatintentionallydonot appeartoallfansoftheirpage.
- 92. Mobilehasclimbedsteadily upwardasapercentageof Facebook’stotaladrevenue. Itgrewfrom14% to23% to 30% andnowmadethebiggest quarteroverquarterjumpto41%. Source: AdAge Digital
- 94. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q2 1,000,000,000 500,000,000 100,000,000 50,000,000 10,000,000 1,000,000 100,000 10,000,000,000 Usercount Revenue Mobileuser 👤1.15 billion $1.18 billion 819 million
- 95. SO WHAT’S NEXT?
- 97. Itisalsopartofalargerpush togoafterdollarsearmarked forTV commercials, thetop choiceamongadvertiserswhen theylaunchcampaigns. Source: yahoo news
- 100. SO IT’S TIME TO START THINKING ABOUT YOUR ONLINE ADVERTISING STRATEGY, PEOPLE!