I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
Trouble in the Meta-verse
Hi Reader,
Last week, I talked about getting recession-ready.
If you haven't done so, would you kindly take one minute to cast your vote in this poll. It'd really help me out.
I apologize that this email is long, but when I started to dive into this week's topic, I realized how much there is to unpack.
So, let's get into it.
What happened?
Way back in February, Meta Platforms—the newly rebranded Facebook—reported a loss of about 1 million daily users in the last quarter of 2021.
This was the first time since its IPO debut in 2012 that the company reported a loss rather than a gain in marketshare.
Pretty momentous.
In fact, it was such a shock that the company's stock price fell by as much as 25% in response to the news.
At the end of July, there was more bad news. Meta reported its first ever year-over-year loss in revenues.
Why should I care?
Well, if you use social media at all, even if you don't use Meta platforms, it may be time to evaluate your strategy because things are getting interesting.
Meta's change of fortunes may be the bellweather for what's on the horizon in the Wild, Wild West of the World Wide Web, and you don't want to be caught trying to catch up and pivot on the fly.
Why did this happen?
The reasons for Meta's downturn are manifold and they speak to trends that are important not just for their impact on social media, but because of the larger implications they may have for your business strategy as a whole.
- Increased customer demand and legislative mandates for control over personal data.
In other words, its much harder to track users, which makes it difficult to support customized advertising. One example is Apple's recent operating system updates that give users the ability to opt-out of ad tracking.
This means advertisers paying premium dollars in the past for Facebook and Instagram ads won't get as much for their money, so the prices will need to fall and advertising on those platforms will be less appealing. Advertising makes up the bulk of Meta's revenue.
- Stiff competition in the form of video-based content.
TikTok's exponential growth over the past few years has pulled a significant portion of its audience from Facebook and, to a lesser extent, Instagram. Even YouTube has experienced growth during the same period that Meta has seen usership and revenues decline.
As a result, Meta has been introducing lots of "copy cat" features and other changes that have been met with a host of negative chatter and that have signaled a more naked admission that their model is all about exploiting users rather than serving them. (Even the Kardashians are having none of it!)
- Generational shifts in user bases and their value to advertisers.
Last year, Millenials began turning 40 (gasp). But, that was just another sign that the sweet spot for advertisers has shifted squarely to Gen Z.
Like generations before, Zillenials aren't satsified following in the footsteps of their parents so they keep trying out platforms that deliver something new and different. Research conducted by the National Research Group in 2020 identified SnapChat, TikTok, and YouTube, in that order, as the preferred platforms for Gen Z.
- The growing importance on social values being reflected in corporate and brand messaging.
Research by the Center for Generational Kinetics found that almost 60% of Gen Zers "would use a product they never tried if the company takes a stand on a social issue they care about."
That's pretty impressive and about time. For years, I've been telling anyone who'd listen that you've got to put your money where your values live. I guess our culture and modern times have finally caught up to that sentiment. And, it's not just Zillenials who are expressing their displeasure and voting with their wallets and eyeballs. We're all much more activated when it comes to supporting 'doing well by doing good.'
Over the last several years, Facebook, as a brand, has been outed for a lot of shady business, including knowingly contributing to the spread of misinformation and allowing hate groups to flourish, so it's understandable why users have begun to look elsewhere for their social media needs.
What should I do about it?
Whether or not you actively use Meta platforms in your business, you still want to look with a fresh eye at your social media strategy, policies, and content plans to make sure they're still serving you, your business, and your audience(s).
Here are my recommendations for how to do that:
- Define the role social media plays in your business—Building awareness with and outreach to your target market, promoting your products or services, driving engagement and/or sales. Can these be accomplished as effectively using other tools or platforms?
- Audit your audience—Are they still primarily using the same platforms? Are they using them in the same way? Are there new tools or features your platforms offer that might be helpful to learn and deploy?
- Explore your options—Are there other forms of content that would serve you better? Are there new audiences you can reach using different platforms or media? Are there platforms that are a better fit for your values?
- Conduct a 'damage assessment'—How would your audience respond if you told them you were migrating away from one platform or another because you did not feel its values aligned with that of your company? What would be the hit to your bottom line if you left a platform you no longer wished to support?
- Test the waters—For any new platform you're considering using, set up an account as a user and explore the content and audience(s). Make sure it works for you and that you understand the official and unofficial rules of engagement before diving in with a business account and posting content.
- Plan your move—If you determine change is needed, plan to take your audience with you. Start introducing your new platform well in advance of your move. Educate your audience so they know why they should follow you there and how to get started. If it makes sense, offer incentives to get them to switch.
In conclusion
To be clear, I am absolutely not telling you to ditch Facebook and/or Instagram. If they work for you, your business, and your audience, terrific—keep doing what you're doing.
What I am recommending is that you make sure these platforms, and any others you use, continue to serve your business as the social media marketplace matures and your business needs and audience continue to evolve.
Want to talk through your social media strategy or anything else you're struggling with during these uncertain and ever-changing times?
Just schedule some time with me.
Until next week, keep staying true to your values, mission, and purpose in everything you do.
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Easily Said & Done
I help entrepreneurs leapfrog over the typical potholes that derail most small businesses with inspiration, motivation, education, and support across a wide range of business topics drawn from over a decade of running my own business, teaching entrepreneurship for the City of New York, and coaching and consulting privately with dozens of women and minority small business owners. Honestly, why go it alone when help is an email away?
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