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Facebook stock crash, Social Media Marketing for New Businesses will Die?

By Avinash Raj 20th May 2022


Facebook is the original and largest social media platform by nearly every metric. Love it or hate it, the social media behemoth — and soon-to-be metaverse harbinger — is a must-have social media channel for marketers.
Because of Facebook’s large customer network and user base, it is one of every business owner’s preferred options for advertising their products or services. Tons of businesses are making millions of dollars from Facebook advertising, whereas it is a pipe dream for many small businesses to run ads on platforms like Facebook because they do not have a budget or an online presence.

Here is a look at what’s happening with Facebook and what the potential is for businesses with a low budget.

facebook stock crash

Facebook stock is Crashing
We had seen Facebook shares crash by 25 percent in February 2022, losing more than $200 billion, the worst single-day fall by any company in the history of the US stock market. Let’s have a look at Facebook stock price stats.

Quick Stats of Facebook stock price

  • On September 07, 2021, the all-time high Meta Platforms stock closing price was 382.18.
  • The 52-week high stock price for Meta Platforms is 384.33, which is 103.6 percent higher than the current share price.
  • Meta Platforms’ 52-week low stock price is 169.00, or 10.5 percent less than the current share price.

Why is Facebook falling?

For the first time in its history, Facebook lost half a million daily users in the fourth quarter of 2021. As Vox points out, that’s a drop in the bucket when compared to Facebook’s total daily active users of 1.93 billion. However, this is the first time this has occurred, and it could be a sign of things to come.

Facebook also stated that Apple’s privacy changes to iOS last year are costing the company a significant amount of ad revenue. App Tracking Transparency is a feature that allows iPhone users to prevent companies from tracking them across third-party apps. According to CNBC, during the earnings call, Meta CFO Dave Wehner stated, “We believe the impact of iOS overall is a headwind on our business in 2022.” It’s in the $10 billion range, so it’s a significant headwind for our company.

Social Media Marketing on Facebook

We all know that this is a digital era, where millions of businesses are run by digital marketing.
Out of all the social media, Facebook is one of the most desired platforms for business owners for advertising.

Facebook marketing is a platform that allows brands to put their products and services in front of a massive global audience through a variety of highly targeted paid advertisements and organic posts. You can target your promotions to a specific audience using Facebook Ads based on gender, age, location, job, interests — any demographic or behavioral data that users willingly share with Facebook.

Will Social media Marketing on Facebook will die because of the crash?

This is one question that started popping into almost every person who is aware of Facebook ads, and it should be as the Facebook stock crash was huge. 
Let’s have a look at the social media ads data before the facebook crash.

As of July 2021, four major social media platforms’ advertising costs have increased dramatically year over year claimed by an article published on Hunch.

  • CPMs for Google and YouTube have increased by 108 percent.
  • The cost of Facebook/Instagram ads increased by 89 percent, while the average CPM was $11.
  • TikTok’s CPM increased by 92 percent, while 
  • Snapchat’s CPM increased by “the least” 64 percent.

Low-budget advertising became harsher as a result of data.

Now let’s look at what market experts think

Experts say that this is a proven model that while there is an increase in demand the cost will be high, but while there will be lesser demand the cost will automatically come down and this happens for every business. Let me prove my statement with a recent fact. Recently, the Netflix stock also got crashed and for the first time in a decade, it happened that Netflix lost its subscribers.

Netflix is working hard to maintain its dwindling user base and will soon introduce cheaper ad-supported plans. According to Reuters, the New York Times reported that the streaming giant is planning to introduce new cheaper plans with advertisements by the end of the year, which is earlier than previously planned.

So, the answer is No. Social media marketing on Facebook will not die, they too will decrease their ad cost to attract new advertisers on their platform.

Facebook ads

Who will take the benefit from the Facebook stock crash?

 For every good or bad thing happening in the world, there are always two aspects. In the Netflix example, I shared above it is quite clear that new users will get benefit by saving a few bucks on every subscription. Exactly the same will happen with Facebook and people doing business with a low budget, especially Local businesses and new budding brands will be able to run cheaper ads.
This will help local businesses escape the local competition, which is also a big big problem for them to sustain.

Conclusion

The Facebook stock crash may be a bad thing that happened for investors or big business owners but it’s a great opportunity and the right time for small and local businesses as well as new startups to move online and start advertising.
If you have any other concerns about taking your business online, managing it, or the cost, please contact us, and don’t worry, you’ve come to the right place.
Jungleworks provides end-to-end online solutions to over 20,000 local businesses at very low prices.
Meanwhile, you can talk to one of our experts for free.

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