Facebook to Boost Consumer Advertising

Date : 06/17/2019 @ 9:30AM
Source : Dow Jones News

Facebook to Boost Consumer Advertising

By WSJ City 

Facebook said it is ramping up its global advertising spending as it aims to rebuild trust after a series of privacy missteps and other controversies dented the social-networking giant's reputation.

Marketing chief Antonio Lucio said the company has been tarred by election interference and misinformation on Facebook as well criticism of its privacy and data management. The FTC is also investigating its privacy practices

KEY FACTS:

   -- The push could more than double the company's advertising spending. 
 
   -- Ad-tracking firm Kantar estimated it shelled out $382m in the US last 
      year, up from $50m in 2017. 
 
   -- Facebook will work with a revamped roster of creative agencies on 
      campaigns for brands including WhatsApp and Instagram. 
 
   -- This is a shift from hiring shops for specific projects, many of them 
      aimed at businesses instead of consumers. 

"There's no question we made mistakes and we're in the process of addressing them one after the other, but we have to tell that story to the world on the trust side as well as on the value side," said Antonio Lucio.

Why This Matters

Facebook does trail some big rivals when it comes to ad spending. According to Kantar's estimates, Amazon spent $1.84bn on US ads last year, making it the fifth-largest advertiser in the country. Google spent $660m in 2018, Kantar said. The Kantar figures don't include some digital ad spending.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

June 17, 2019 04:15 ET (08:15 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.


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