With Facebook’s stock market flotation imminent, European MD of RadiumOne. Rupert believes that Facebook’s advertising model could lead to an over saturation of adverts for Facebook users.
Facebook’s enormous valuation is going to demand revenues to match, and with a sizeable chunk of this being generated through advertising already, the chances are we will see a massive spike in the number of adverts we are exposed to across their desktop and mobile platforms.
The worry is, that Facebook’s users will face a deluge of advertising every time they visit the site.
There is a genuine risk that the site will reach saturation point, where ROI for brands falls away in the face of increased competition and users tire from advertising overload.
Brands need to remember their audience and future customers are fluid in their digital consumption habits, and there are so many more opportunities outside of the walled garden across the entire Open Web.
A consumer’s social connections and increasing sharing behaviour give advertisers access to a wealth of data that they need to be turning into actions. This provides them the opportunity to deliver relevant messages to their desired audience, resulting in greater engagement and ultimately more customers.
This eagerly awaited IPO ushers in a new era for the web and all the commercial opportunity that the social explosion brings with it. The commerce – consumer axis is finally shifting and that’s exciting for those who grasp it!
By Rupert Staines
European MD
RadiumOne
www.radiumone.com/
