This is part one of a multipart article series looking at the current landscape of the social media platform Facebook and its effect on New Zealand SME businesses.
Introduction
Facebook, once the titan of social media platforms, is facing a noticeable decline in user satisfaction and engagement. For many users, the experience of scrolling through their feed has become dominated by ads and recommended pages, overshadowing the content from pages and people they follow. This shift has significant implications for businesses, particularly in New Zealand, where small businesses rely on Facebook for marketing and customer engagement. In this article, we will explore the current state of Facebook, suggest improvements for Meta, and provide warnings from a business perspective about the platform’s future viability.
Mars Digital, a trusted name in digital marketing in New Zealand, has been navigating the social media landscape since its founding in 2018. Our expertise, rooted in the extensive experience of our founder, Matthew Edwards (that’d be me), who has been involved with social advertising for over a decade, places us in a unique position to analyse and critique the shifts within Facebook’s ecosystem. Since its inception, Mars Digital has been committed to helping New Zealand businesses harness the power of social media, enabling them to reach broader audiences and achieve their marketing goals.
The Importance of Social Media for New Zealand Businesses
New Zealand’s business landscape is characterised by a vast number of small to medium-sized enterprises (SMEs). According to Statistics New Zealand, SMEs make up 97% of all businesses in the country, highlighting their critical role in the economy. These businesses often operate with limited resources, particularly when it comes to marketing budgets. This financial constraint has historically made social media platforms like Facebook an attractive option due to their ability to provide substantial reach at a relatively low cost.
Social media platforms have democratised marketing, offering businesses the ability to engage with their audience without the need for massive advertising budgets. For New Zealand businesses, this has meant the ability to compete on a level playing field with larger companies, using creativity and strategic targeting to reach potential customers.
The Changing Dynamics of Facebook
In the early days of Facebook, the platform offered unparalleled opportunities for businesses to connect with their audience. Organic reach allowed businesses to engage with followers without significant investment in advertising. However, over the years, the dynamics of Facebook have changed dramatically. The introduction of algorithms that prioritise paid content has led to a substantial decrease in organic reach. Today, businesses must invest heavily in paid advertising to achieve the same level of visibility that was once possible for free.
This shift has profound implications for New Zealand businesses. As marketing budgets remain tight, the increasing cost of Facebook advertising can be a significant burden. For many small businesses, the return on investment (ROI) from Facebook marketing is diminishing, leading to questions about the platform’s long-term viability as a marketing tool.
The Rise of Advertisements and Recommended Content
One of the most significant changes users and businesses have noticed on Facebook is the overwhelming presence of advertisements and recommended content. The user experience has shifted from being a place to connect with friends and follow favourite pages to a platform inundated with ads. This change has not only frustrated users but has also impacted businesses negatively.
