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The Journal.

Facebook's $10 Billion Advertising Exodus

The Journal.

The Wall Street Journal

Business News, Daily News, News

4.25.8K Ratings

🗓️ 7 March 2022

⏱️ 16 minutes

🧾️ Download transcript

Summary

Last month, Facebook's parent, Meta Platforms, forecasted the company would lose $10 billion in advertising revenue this year. Small business owner Martha Krueger explains why she stopped using the platforms, and WSJ reporter Salvador Rodriguez talks about how the company plans to address the exodus. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Martha Kruger is the owner of Gift in Market, an online gift basket store.

0:11.2

What's your favorite product?

0:12.6

It's so hard to pick.

0:15.4

I love our handmade and pot the carry items.

0:20.0

So lavender-centred heat wraps for sore shoulders, things like that.

0:26.0

If you have these sophisticated-looking wine-flavored gummies, they're delicious.

0:34.1

From the get-go, Martha says she was counting on Facebook and Instagram to be the key to

0:39.0

finding customers.

0:40.8

I knew I would be able to get in front of the people that would be really interested

0:46.1

in my products.

0:47.9

And so that was kind of the first and the only major type of advertising that I did in

0:55.1

launching the company.

0:56.9

And Martha says those ads on Facebook and Instagram were really effective.

1:02.2

Because Facebook's data machine could target the right people.

1:06.0

The people interested in buying gift baskets.

1:09.0

And the ads were cheap.

1:11.0

You know, in the early days, I was able to get customers for $14 per customer acquisition.

1:18.0

Sometimes as low as $4 or $8 for certain occasions.

1:22.1

And really, the only thing holding me back in the early days was cash.

1:27.7

I had to cap the amount of advertising spend per day just so that I wouldn't get more

1:34.3

sales than I could handle.

1:37.5

But last year, Martha noticed a change.

...

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