Day: March 28, 2018

Just To Make A Point

From my Sunday article. To wit:

And the biggest excuse that matters in all of this, is what I alluded to in the headline. i.e., This latest excuse coming from Zuck & Crew, about their handling of data, is just the excuse many an advertiser needed to stop spending precious ad dollars on FB, if not the entire social media model in general. Why?

Because if it was working as sold? Advertisers wouldn’t be so forth coming, stating they’re now pulling ads away. i.e., If those ad dollars were producing results in-line with their expenditure? Businesses would be very hush-hush, in a much more wait and see mode of operation on what to do next, if anything. That’s a very big tell-tale sign, or clue that should not be overlooked, in my humble opinion.

The only reason a business (generalization, of course) cancels any type of advertising that is working, with great fan-fare, or decry of public outrage, is that in doing so, it is seen as a greater sales tool – than keeping the original ad budget expense.

Or said differently: This is the perfect excuse to soothe jittery boardrooms or executives to no longer spend precious ad dollars on social, and possibly try other avenues or venues. The reasoning is simple:

If there are going to be less content providers via FB’s own censorship, along with a full-blown user revolt? Then, much like IBM found itself in-the-blink-of-a-cursor back in the final go-go days of the dot-com era. People began getting fired for not seeking IBM alternatives rather than just going with the assumed “competitive brand leader.”

And the point? Fair question: From the Wall Street Journal™ this morning, again, to wit:

“Playboy Deactivates Its Facebook Account”

“The recent news about Facebook’s alleged mismanagement of users’ data has solidified our decision to suspend our activity on the platform at this time,” the privately held company said Wednesday.

Playboy said it would deactivate the various Facebook pages it manages. More than 25 million Facebook users have engaged with these accounts, the company said.

A Playboy spokesman said the company has no plans to return to the platform. Facebook Inc. didn’t immediately respond to a request for comment.

To clarify:

“Playboy said it would deactivate the various Facebook pages it manages. More than 25 million Facebook users have engaged with these accounts…”

Neither a company, nor an advertiser would dare jettison any working interaction between “25 million” users – if – there was any beneficial gain in having them. Let alone, any material gain such as a sale that is meaningful to its bottom line.

Playboy™, whether you agree with their business or not, is a business desperate for paying customers as much as, if not more so, than those still reading its content (you know, “for the articles”) looking for whatever. Playboy is the ultimate “eyeballs” purveyor, as well as consumer – and they are willing to jettison 25 million users overnight. Think about that very carefully. For if there was value in those “millions” – do you think Playboy, for all intents and purposes, would just willy-nilly throw them all to the wayside?

The only reason they’d do that is because of one thing, and that is this: “25 million” means jack-squawt if it’s not producing meaningful net profits to the bottom line. Period. Full stop.

And that’s now a very big problem for Facebook’s (and many of the others) bottom line, user growth, user engagement, and on, and on. Not to mention all the next-in-rotation fund-managers, social-media gurus, et al. that sold told you your business had to be there, or was nowhere.

Hint: Their value is the only thing falling quicker than the entire market cap of the social-media space. But there is some consolation.

They’ll have plenty of company. i.e., The room is getting awfully crowded with the ever burgeoning group of discredited: Unicorn gurus, IPO gurus, Cryptocurrency retirement gurus, Automated Investment Service Gurus, Real Estate advice gurus, and on, and on.

Funny how all that “expertise” suddenly vanishes in line with the Federal Reserves Balance Sheet, is it not?

© 2018 Mark St.Cyr