Why Social Media Will Kill Your Business

Social Media Advertising Will Kill Your Business


You may be asking how “Social Media Advertising Will Kill Your Business“. So you recently hired, a newly graduated marketing student to oversee your advertising budget. Of course being a new marketing graduate, they now know exactly how to promote your business. Their first suggestion, Social Media. Wow, social media the new buzzword of 2017 replacing the previous buzzword in marketing “Viral Video”. So you decide hey they know what they are talking about. They are young, your exact demo, they just graduated Summa Cum Laude  from a prestigious marketing university. They must be right. So they take your budget and begin marketing on social media sites like Facebook, Instagram, Twitter and others. All of a sudden you start seeing likes, and the followers are growing, next thing you know the amount of people who are reading your updates and special offers are growing daily, sales are starting to increase and then along comes Facebook. Facebook has decided that in order for their business model to be more profitable, that they are going to start charging your business to show your followers your newest post. Hey things have been going well so you think no big deal I will throw some money their way. So you do, but so do your competitors. In fact now you have begun a bidding war to get your message out to your followers first.


Maybe it is still great, maybe it is still growing, maybe the cost per 1000 followers is low, but the question has to be for how long? Think about the cost of promoting on Google, Bing or Yahoo. When that began it was cost effective also, but soon the cost per display and click through rose to an astronomical charge per click. in fact we have witnessed click rates of $19-22 per click. How can you own a pizza store or local insurance agency  and pay a click fee of $19-22? This isn’t an acquisition fee as you have yet to actually close the sale. In this example let’s say that you close 25% of all incoming calls, maybe 80% if you have a pizza shop, that customer has now cost you around $80. Now if you think that native “likes” are going to remain pennies per click or display then you are soon to be shocked.


So how do you prepare for the inevitable. Let’s look at something like a traditional ad on local cable TV. Let’s say you live outside of a top 10 market. You can purchase a local market within a 10 mile radius of your location for around $25 per commercial. So let’s say for each commercial you average 2 calls, well for $100 you acquire 2 clients compared to the 1 for the $80 fee. I know that all of this is based upon certain criteria and the fact that you are in a highly sought after category for advertisers. Unlike the auction styling of mobile and digital advertising, cable stays pretty consistent in pricing. This helps to ensure your cost of acquisition per customer remains fairly constant, and as you are working on a budget each year consistency helps to maintain profitability.

Below is one reporters personal experience with Facebook’s newsfeed. In an article on Gizmodo.

“How Spammy is Facebook’s News Feed: an Experiment”
By Gizmodo Australia on  at

So let’s check out what I’m really getting. Here are the 35 posts that made up the top of my Facebook feed at 3:54pm on 18 December:

  • Friend’s post, just now.
  • Sponsored post.
  • Friend replied to a comment on their post, 4 days ago.
  • Group post by a non-friend, 3 hours ago.
  • Page post, 13 minutes ago.
  • Group post by a non-friend, 9 hours ago.
  • Page post, 9 hours ago.
  • Sponsored post.
  • Page post, 1 day ago.
  • Friend commented on a post from a page I followed, 2 days ago.
  • Page post, 15 hours ago.
  • Page added 1 photo to album, 5 hours ago.
  • Post shared to group by non-friend, 3 hours ago.
  • Sponsored post.
  • Page post, 19 hours ago.
  • Page post, 16 hours ago.
  • Page post, 2 days ago.
  • Group post by a non-friend, 20 hours ago.
  • Page post, 3 days ago.
  • Group post by non-friend, 5 hours ago.
  • Sponsored post.
  • Page post, 3 days ago.
  • Page post, 3 days ago.
  • Page added 2 photos to album, 2 days ago.
  • Page post, 3 days ago.
  • Page added 19 new photos, 3 days ago.
  • Group post by non-friend, 4 hours ago.
  • Sponsored post.
  • Group post by non-friend, 4 hours ago.
  • Page shared post from other page, 1 day ago.
  • Page post, 23 hours ago.
  • Page post, 2 days ago.
  • Page shared 5 photos to album, 1 day ago.
  • Page updated cover photo.
  • Sponsored post.

Think about your customer, yourself or your significant other, how has their feed been lately, Do they find that very little has been updated recently in their feed since their previous check? Do they find that pages they liked aren’t displaying like in previous years? Are they having to go to Explorer to find news and other info? We understand the amount of info on your newsfeed after seven or eight years of owning an account but shouldn’t it be the users decision which stories no longer display, not social media’s?


How Spammy is Facebook’s News Feed: an Experiment
Facebook tests removing publishers from News Feed—unless they pay
Facebook is clamping down on posts that ask people for ‘Likes’ or shares
How much news makes it into people’s Facebook feeds? Our experiment suggests not much