Consider the relatively recent changes that have taken place on the major social networks in the past 12 months or so:
- Facebook, in the weeks leading up to their IPO, introduced a new tool they called “Reach Generator” that became what we now know as paying to reach your fans through promoted posts. The announcement was made in Manhattan before an audience of some of the largest advertisers on the planet. The move to promoted posts prompted quite a bit of backlash.
- LinkedIn rolled out new advertising options to allow businesses to use small block ads on the right rail to promote their products and services, yet the most visible ads remain in the banner ads, which are the domain of large-scale advertisers.
- Google AdWords announced the move to “enhanced campaigns” to force the inclusion of mobile platform advertising into all AdWords advertising campaigns.
- Twitter recently revealed that the cost of the “promoted trend,” a one-day purchase of the top slot on the list of trending topics had increased to $200,000 per day.
In considering each of these moves, We believe we’re seeing the beginnings of a significant trend: social media is boxing out the small and medium-sized business (SMB) advertiser from advertising on its networks.