PETITION

We’ve often highlighted how distressed retailers may be in for a rude awakening if they think deploying influencer-based social marketing on platforms like Facebook Inc. ($FB) and others will be the cure-all to their woes. And be easy. It won’t be and it’s not. The campaigns require significant expertise to execute and the cost of such campaigns has been on the rise. Until recently, it seems. In Facebook’s recent earnings call, CFO Dave Wehner said:

“In Q3, the number of ad impressions served across our services increased 37% and the average price per ad decreased 6%. Impression growth was primarily driven by ads on Facebook News Feed, Instagram Stories and Instagram feed.”

Surprisingly, Facebook appears to be driving a large part of that impressions growth rather than Instagram Stories and the Instagram Feed. This means ads are reaching more people on the platform and, yet, the average price of ads decreased. While it’s not clear from the company’s SEC filings nor its earnings call why this is the case, this is a potential positive for retailers looking to deploy social ads.

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