Forrester Research kicks Facebook in the nuts, says Facebook is failing marketers
30th October 2013

kickedinthenutsWe love a bit of controversy with the morning coffee and nothing better than our favorite giant Facebook getting kicked in the nuts (figuratively) by Forrester Research.

An open letter from Forrester's Nate Elliot to Facebook's Mark Zuckerberg warns about the Facebook not giving enough value to businesses who advertise on it.

Nate Elliot writes,

"But while lots of marketers spend lots of money on Facebook today, relatively few find success. In August, Forrester surveyed 395 marketers and eBusiness executives at large companies across the US, Canada and the UK ?€" and these executives told us that Facebook creates less business value than any other digital marketing opportunity."

'Creates less business value than any other digital marketing opportunity' - Very very harsh words indeed. Experts are debating whether 395 companies are a big enough sample size to validate this survey.

Nate goes on to add,

"...your company focuses too little on the thing marketers want most: driving genuine engagement between companies and their customers. Your sales materials tease marketers with the promise that you'll help them create such connections. But in reality, you rarely do."

As a social media agency that desperately tries to leverage I cannot but help agree a little bit with Forrester. Facebook really does need to do more for businesses trying to market on it. I would start with more options to customize the ubiquitous Fan page. It seems to be stuck in the 90s.

However Forrester's main grouse with Facebook is the return on investment on the paid ads which it says gives poorer returns than any other online form of advertising.

For more view points on this interesting piece of drama

Is Facebook Really a Failure to Marketers?? by Andrea Huspeni - Entrepreneur

Brutal Forrester Report Tells Advertisers, 'Don't Dedicate A Paid Ad Budget For Facebook' by Jim Edwards - Business Insider

The coming days will show how seriously Facebook is taking the Forrester report and if there will be a legal response or a business response.

Cheers,

Ron

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