Will Facebook's stock crash kill startup marketing?

Will Facebook's stock crash kill startup marketing?

Whether we like it or not, Facebook has become the social media giant that has helped thousands of startups boost their marketing strategies. Not to mention that when the Metaverse appears it will become one of the main channels that specialists will try to make the most of.

Thanks to the user base, it is one of the preferred options for companies to advertise services. Many of these are earning millions of dollars by advertising on Facebook. However, for those who are just starting out, it is a dream to publish on platforms like this, since they do not have such a high budget. Let's delve into this to know how to approach it in the new situation.

Destabilization in big blue stocks

Facebook shares fell 25% in February 2022, losing more than $200 billion. This has been the worst 24-hour decline of any company in the history of the US stock market . This began the previous year when it lost half a million daily users in the fourth quarter of 2021.

We can read these things and say, Facebook is still a giant in the market, but it was a precedent. The company also stated that privacy changes in iOS were costing it a significant amount of advertising revenue. According to Meta's CFO, "We believe the impact of iOS overall is a headwind for our business in 2022."

Social media marketing for startups

Facebook marketing provides a platform that allows businesses to get in front of a massive audience. Which works through a large number of very targeted paid ads along with organic posts. Promotions can be targeted to a niche based on gender, age, location, job or interests.

Instant statistics of Facebook shares

In order to understand a little more about what startups should adhere to , let's look at some numbers. These statistics are from the previous year but laid a foundation for the method of operations the company took for 2022.

  • On September 7, 2021, the closing price of Meta Platforms shares, which was the highest of all time, was 382.18.

  • The 52-week high stock price for Meta Platforms is 384.33, which is 103.6 percent higher than the current stock price.

  • Meta Platforms' 52-week low share price is 169.00, or 10.5 percent lower than the current share price.

Will the fall of Social Media Marketing on Facebook come?

Since July 2021, the costs to pay for advertising on the four main social media platforms have increased. This increase since last year was somewhat drastic, this was stated in a Hunch article. In which all the calculations, ads and percentages were explained more specifically.

CPM or Critical Path Method for Google and YouTube have increased by 108%. In contrast, the cost of Facebook/Instagram ads grew by 89%, while the average Critical Path Method was $11. Snapchat's CPM, which has been out of focus for some time, increased by “at least” 64%. On the other hand, the CPM of newer networks like TikTok increased by 92%.

Arguments from market experts

Specialists affirm that there is a proven model for these cases, which can be applied to startups . As long as there is an increase in demand the cost will be high, and as long as there is less demand the cost will automatically go down. A great example of this currently is Netflix, its stock was blocked and for the first time in 10 years, it lost a large number of subscribers.

In 2022, Netflix has worked hard to maintain its subscribers and has decided that it will present cheaper plans with advertising. The New York Times was the one that spread the word, new plans with affordable prices are planned to be presented by the end of this year. So experts argue that no, Facebook marketing will not die, they will just decrease the cost of your advertising.

Who benefited from this stock drop?

Like everything in life there are always two aspects, the positive and the negative, business is not outside of this. In the example above we see something negative, however, new users will benefit by saving much more when subscribing. We cannot forget that all this is based on what customers want or don't want. If they decide that your service is not worth what you want them to pay, they will discard you.

The same duality happens with Facebook, new generations of services with little budget, especially more local businesses, will be able to publish cheaper ads. This will help startups escape local competition, which is a dominant factor to overcome.

The great ones also have their falls

Facebook's declining stock may be a bad thing for large business owners. But, you can already see that it is a great opportunity and the right time for startups . Facebook is the largest social network in almost all metrics in the world. Move online, take advantage of this last quarter of the year to invest in advertising like you would never have been able to before.

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