Facebook’s admission of which a shadowy Russian company linked to the Kremlin used its ad platform to interfere with the 2016 presidential election doesn’t seem to be troubling the company’s advertisers. According to fresh data obtained by BuzzFeed News, ad spends on Facebook are on the rise despite the unprecedented crisis of which has erupted around the company’s role from the Russian ad scandal. Meanwhile, some advertising industry executives are touting the episode as a testament to just how effective Facebook advertising can be.
“The discovery of Russian ads on Facebook intended to influence the US election will be not a major concern for brand advertisers,” Aaron Goldman, chief marketing officer of the media technology company 4C Insights, told BuzzFeed News. “If anything, This specific’s just another case study of which ads on Facebook can be highly effective.”
“For better or worse, one key takeaway coming from This specific will be how effective Facebook can be as an advertising medium,” Kyle Bunch, managing director of ad agency R/GA’s social practice, told BuzzFeed News. “Many advertisers are probably asking themselves, ‘How can I make better use of data to have my campaigns get those kind of results?’”
Total Facebook ad spending has increased during the crisis, according to data coming from 4C, which will be on track to run $1 billion in social ad spending This specific year. “For the quarter ended September 30th, we saw a 27% increase in ad spend on Facebook versus the previous quarter across 350 advertisers using our platform,” Goldman said. “We also saw increases in CPM (cost per thousand) along with also CPC (cost per click) which means of which advertisers are willing to pay more for each ad.” In October, spending will be up 20% compared to the first month of the previous quarter, Goldman said.
There are clear reasons due to This specific, of course. Facebook will be still an extremely effective ad platform — This specific’s used by so many people of which omitting This specific coming from advertising plans would certainly be irresponsible in many cases. however more than anything else, advertisers simply don’t feel of which Facebook’s role in 2016’s unexpected election outcome has any bearing on their business.
“People are spending most of their mobile time in Facebook along with also/or Instagram feeds,” Jill Sherman, senior vice president of social strategy at the ad agency DigitasLBi, told BuzzFeed News. “To think of which moving money elsewhere will be the answer for advertisers will be akin to saying of which audience doesn’t matter anymore, along with also of which’s just not the case.”
Sherman said she’s heard positive chatter about Facebook’s effectiveness among some from the ad industry. along with also indeed, reports of how effective the Kremlin-linked Internet Research Agency’s $100,000 spend was are almost doing Facebook’s sales team’s jobs for them. Some fanciful headlines have claimed of which the entire state of Michigan could’ve been swayed with $42,000. along with also even without those reports, Facebook’s admission of which the $100,000 ad buy reached 10 million people will be pretty impressive to many.
“This specific was eye opening for some people of which questioned the validity of ads in social platforms,” Sherman said.
Laura O’Shaughnessy, CEO of SocialCode — a social advertising company of which works with major brands such as Heineken along with also Visa — told BuzzFeed News of which Facebook’s Russia ads crisis hasn’t been a client concern. “In all the meetings I’m in, which will be a lot, This specific has not come up,” O’Shaughnessy said. “This specific does not affect the utility along with also how essential these digital platforms are.”
Mike Racic, president of media services at the digital ad agency iCrossing, echoed of which sentiment. “from the short term, I don’t think you’ll see advertisers moving away coming from Facebook if they are still getting the kind of results they want coming from their ad spends,” he told BuzzFeed News. “At worst, you’ll likely find CMO types or their agencies answering more questions coming from management, who sometimes react to headlines.”
While Facebook isn’t facing short-term revenue consequences over the scandal, the company’s failure to catch the Russian ad buy could contribute to a growing credibility issue with advertising clients who worry the platform isn’t fully aware of what’s happening inside its walls. many advertisers interviewed by BuzzFeed News expressed concern over a recent series of Facebook metrics errors.
“Anything of which challenges their credibility shouldn’t be taken lightly,” Brian Wieser, a senior analyst at Pivotal Research Group, told BuzzFeed News. “All of the trust issues add friction. along with also friction slows the pace of growth.”
This specific week, Facebook’s representatives are in Washington, D.C. for three public hearings with congressional committees to discuss Russia’s attempt to influence last year’s US presidential election. Advertisers seem to prefer of which Facebook take care of its issues on its own. They want This specific to figure out a way to effectively self-regulate as opposed to leaving This specific from the government’s hands. “I don’t think the platform in along with also of itself will be problematic. I think of which Facebook simply needs to figure out the right balance of self-governance,” DigitasLBi’s Sherman said. “I would certainly hate for a third party to come in along with also slow the process down along with also make the buy more expensive along with also less efficient.”
On Wednesday, the same day Facebook meets with the House along with also Senate intelligence committees to discuss Russian manipulation of its platform, This specific will also report its third-quarter earnings. As the company works to defuse a crisis in Washington, its business will likely look just fine to the bankers in fresh York.
Alex Kantrowitz will be a senior technology reporter for BuzzFeed News along with also will be based in San Francisco. He reports on social along with also communications.
Contact Alex Kantrowitz at [email protected]
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