This graph comparing Facebook ad revenue vs newspaper ad revenue appeared over the Thanksgiving weekend.
As a small business owner, here are a few things to factor into your reaction to this data:
1) Graphs like this can be misleading when there is one media (Facebook) in serious growth mode vs. an entire market. We’re talking about a large market of diverse sized newspaper businesses where many of this group still don’t get the internet, still don’t get direct marketing, don’t have the ability to target subscribers based on income and other demographics (much less psychographics), and still don’t coach their advertisers to place ads that produce results. There are some who do get those things and who are focused on producing results for their clients (versus “How many $ of ads can we sell this week?”), but they seem to be a minority. Be careful not to paint the entire newspaper industry as a monolithic dinosaur that cannot deliver solid leads to you. Some papers fit that description, and some don’t.
2) The volume of Facebook ad revenue vs. U.S. newspaper ad revenue as a whole doesn’t mean you much to you IF your newspaper ads are working. Remember, what works FOR YOU is what matters, not what a pundit says, and not what the average says about an entire market across the whole country. Do what works. Do what you can dominate at. Monitor constantly. Keep in mind that a substantial piece of the drop in newspaper ad spend is due to classifieds going to online markets such as Craigslist.
3) If you aren’t already using Facebook ads, perhaps it is time to reconsider them – no matter how solid the results are from your newspaper campaigns. Wearing blinders is dangerous, so don’t get caught napping because your current newspaper ads are producing well. Like every lead source you use, you have to watch your newspaper ad production closely to make sure that it’s still hitting your cost per lead requirements. If newspaper lead performance falls off, you’ll need to keep a close eye on the customer value of those leads.
4) The graph is a little old because some of it appears to be based on 2014 newspaper data. The advance of Facebook ad spend has likely increased since that time. An April 2016 eMarketer piece indicated Facebook was on track for $22B in global ad sales for 2016. See #3.