Doesn’t it seem like Facebook (and all social platforms, really) change their algorithms and update their policies every day? It can be hard to keep up with the latest and know what’s possible for your brand – including targeting capabilities, content strategies and audience building. Facebook used to be a place where direct-to-consumer (DTC) brands could scale without retail partners, or middlemen, and see a better impact on their bottom lines.
The whole premise of the DTC movement is cutting out the middleman, so brands can afford to charge less for higher-quality goods. When social media was in its infancy, it was easier for brands like BaubleBar and Warby Parker to get in front of fans, cheap. There wasn’t a ton of noise on the platform, and cutting the traditional middleman out was a fairly new idea to the market. Today, those tactics are much more difficult as the space has become saturated by businesses and consumers.
Due to Facebook’s microtargeting capabilities, which draw a direct line to consumers, the platform has long been a priority for ad spend for many DTC ad buyers, with some dedicating up to 75% of their budget to the platform. However, with algorithm changes, price increases and an overcrowded space, these brands are pulling away from Facebook ad spend and turning to more traditional ad units.
To get in front of these important and highly targetable audiences, brands must use the likes of Google, Instagram and Facebook as their storefront to consumers – and these platforms know the power they hold. In just a year’s time, the average cost-per-thousand impressions has risen 171%. At one time, brands were spending up to 75% of their ad spend on Facebook, and now they’re pulling away as fast as they can and are turning to more traditional outlets like out-of-home, radio and even print.
As brands shift more ad spend off Facebook and toward nontraditional alternatives, it’s obvious they’re leaving a lot behind, such as measurement and performance. However, to optimize relationships with consumers, brands will need to begin diversifying their ad spend and considering other media to sustain brand affinity while not blowing their budgets.