The question of whether to continue investing in Facebook is a valid one for Australian SMEs right now. It’s not a simple yes or no. We’re seeing significant shifts in consumer behaviour and platform dynamics, so a considered response is crucial for optimising your marketing spend and achieving genuine return on investment.

For years, Facebook was the default social media strategy. Its massive reach made it almost unavoidable. However, organic reach – the number of people who see your posts without paid promotion – has declined steadily. This means getting your message seen now almost always requires advertising, increasing your customer acquisition cost. We’re also observing a demographic shift; younger audiences are increasingly favouring platforms like TikTok and Instagram, while Facebook’s user base is generally ageing.

Here are some key things to analyse before making a decision:

• Your Target Audience: Where are *your* ideal customers spending their time? If they’ve largely moved on from Facebook, your efforts are likely being wasted. Detailed customer profiling is essential.
• Campaign Performance: Don’t rely on vanity metrics like likes and shares. We need to focus on conversion rates – are Facebook ads actually driving sales or leads? A thorough review of your Facebook Ads Manager data is vital.
• Channel Diversification: Are you overly reliant on Facebook? A robust market positioning strategy involves multiple channels. Reducing dependence on a single platform mitigates risk.
• Cost Per Acquisition (CPA): How much does it cost to acquire a customer through Facebook versus other channels? If your CPA is significantly higher on Facebook, that’s a strong indicator to re-evaluate.

Simply stopping Facebook altogether isn’t usually the best approach. A more strategic response is often to refine your approach. This might involve reducing ad spend, shifting budget to other platforms, or focusing on highly targeted campaigns with a clear return objective. We’re seeing success for clients who use Facebook primarily for retargeting – showing ads to people who have already visited their website. This leverages existing interest and typically delivers a lower CPA.

Ultimately, the decision depends on your specific business and marketing goals. We recommend conducting a comprehensive channel audit to assess the performance of all your marketing activities. This will provide the data you need to make an informed decision about the future of your Facebook strategy and ensure you’re allocating resources effectively for growth.