For those of you who may have missed it, Facebook had its Q2 earnings call late last week (7/26). It was a very interesting call, not only because of the results of Facebook’s financial results from the past quarter, but more importantly because of its strategic focus moving forward. In a nutshell, Mark Zuckerberg stated that Facebook’s top priorities include:
- Taking advantage of the huge mobile opportunity
- Driving adoption of the new Open Graph platform, with the goal of making all its products more social
- Pumping up its social advertising initiative, which is evolving from brand-to-consumer to consumer-to-consumer based advertisements
So how is any of this relevant to Extole? As a leading Consumer to Consumer (C2C) social marketing platform, we enable brands to tap into their customer advocates to drive measurable marketing results through social word of mouth. Sound familiar?
That’s because Facebook’s entire data model and new advertising strategy revolves around creating a platform that enables 3rd party sites and applications via the Open Graph to publish contextually relevant stories across Facebook.
As Mark Zuckerberg stated on the earnings call, “The basic idea here is that the best type of advertising is a message from a friend.” Where Extole provides value is in helping brands engage with their customer advocates and foster the creation of word of mouth (WOM) or “stories” that are inherently more social and engaging because they are recommendations or messages from trusted sources.
The key to Facebook’s approach lies with the proliferation of Sponsored Stories (Facebook’s new ad unit) as a key source of revenue and the glue that ties together its mobile, platform and social advertising strategies. Extole is primed to catch this next wave and ride it all the way in with our ability to create C2C stories, through Facebook’s Open Graph, and broadcast them across Facebook at scale. And, in a congested social world where it’s getting harder to rise above the noise, Extole’s ability to help brands leverage all of their key marketing touch points to create highly targeted, interesting and relevant stories well positions us as the leading technology to drive WOM marketing at scale.
With Facebook being the largest and most visited social network in the world, it’s clear that the addressable market on Facebook for brands is massive. With Facebook’s continued focus on increasing adoption of its Open Graph platform and improving the effectiveness of advertising spend, brands will need to shift their advertising efforts and implement strategies that better align with this new opportunity.