Facebook Advertising is Good For…?

Well, We Know It’s Good for Facebook!


According to CNBC, as of February 1st, 2023, Meta Platforms, Inc. (Facebook) reported a 4th quarter increase in revenue, a whopping $32.17 billion! Pretty awesome, right?

We have stated that Facebook advertising revenues are dropping and that people are returning to traditional advertising, such as radio and TV. Why? Because of the lack of sales for many people from their Facebook advertising. (Facebook will send your ad out to many people, but not necessarily all the people that you want to see your ad).

So are they making money or losing money? How is this apparent discrepancy to be understood? It should be noted that as the article mentioned continues, it states that “Revenue in the fourth quarter fell 4% from a year earlier, marking a third straight quarter of declining sales. The company’s cost and expenses ballooned 22% year-over-year to $25.8 billion.”

Also on February 1st, 2023, Sky News reported that “Facebook’s parent firm recorded a 55% drop in profits during the final quarter of 2022 – the result of a $4.2 billion restructuring charge that included the cost of thousands of job cuts. Meta Platforms, which also includes WhatsApp and Instagram in its stable, said its net income profit measure slumped to $4.65 billion between October and December. That was down from a figure above $10 billion during the same period in 2021.”

How many job cuts? At the end of 2022, Forbes reported, “Meta laid off over 11,000 employees in early November, reducing its workforce by 13% and enacting a hiring freeze through the first quarter of 2023.”

That’s why they’re working so hard to develop things like the Metaverse which is three dimensional advertising.  Obviously, it’s going to take a lot longer than originally thought to get that done so people might want to maybe invest in something that’s more straight and true – radio.

While it looks like Facebook is not hurting too much, it appears that there is still a problem. Facebook is still trying to try to recapture the type of growth they had seven or eight years ago.

We tend to think that Facebook is making all its money in the U.S. Let’s get some perspective. According to World Population Review, U.S. Facebook users are estimated at 240 million. In a country of 334.2 million people, that’s certainly impressive.

But what we don’t think about is that India’s Facebook users are estimated at 416.6 million! Well, in a country of over 1.4 billion people, that’s really not such a huge number but it’s more than the entire population of the U.S. But wait! There’s more! Indonesia has 176 million users and Brazil has 139 million users. As a matter of fact, the number of Facebook users not including the U.S. is 2 billion and 326 million… plus, representing over 125 countries, many with unfamiliar names, such as Suriname, Comoros, Eritrea and Niue.

So when you read about Facebook’s annual revenue reports, it must be understood that they are reporting revenue from many of these countries so their total numbers look astronomical! But it is still a fact that they don’t take in the kind of gross revenue that they used to.

What is the point of all this? The point is unless you like giving money to “The Man” maybe you should look at a simpler and yet reliable form of advertising that reaches a third of America each week – radio.

Call us to talk about how radio can be used to either complement or replace a digital ad program! 800-208-7154


By Pete Miller and Sean Pearce


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