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Marketers flock to the newest, trendiest platforms, creating a vacuum on established ones. Facebook proper, for instance, has an enormous user base of 45-80 year olds with significant disposable income, yet it is often ignored by contemporary marketers, making it a prime arbitrage opportunity.
While many marketers focus on TikTok and Instagram, Facebook Reels is currently "crushing" organic reach, even among younger demographics. Similarly, LinkedIn is a massive, untapped opportunity for both B2B and consumer brands to gain attention.
Despite having 500 million monthly active users, Facebook Marketplace has a surprisingly barren landscape for third-party developer apps, unlike mature ecosystems like eBay or Shopify. This presents a massive opportunity for tools that help sellers with pricing, arbitrage, and automation.
Brands over-invest in TV, mistaking ad placement for consumer attention. Viewers are distracted during commercials. Social media ads, integrated into feeds, capture actual attention more effectively and provide better ROI, even for older demographics who are heavily on platforms like Facebook.
Marketers chasing trends on 'cool' platforms like TikTok create an imbalance where massive, older platforms have huge audiences consuming features like Facebook Reels but few creators serving them. This supply/demand gap for attention creates a significant, underpriced marketing opportunity.
Frame marketing strategy not as managing channels, but as "day-trading attention." Identify platforms where user attention is high but advertising costs are low due to a lack of saturation from major brands. This arbitrage opportunity allows smaller players to achieve outsized results before the market corrects.
Think of social media platforms like real estate markets. The greatest returns come from identifying and investing in "emerging neighborhoods" (like TikTok in 2018) before they become saturated and expensive. Being an early adopter on a new platform is the digital equivalent of buying beachfront property decades ago.
Facebook's main 'Blue' app is an underpriced attention channel. Contrary to popular belief, usage among 22-32 year olds is surprisingly high due to features like Marketplace and Groups, but it's often unacknowledged. This creates a significant arbitrage opportunity for marketers who can reach this demographic at a lower cost than on more saturated platforms.
Despite TikTok's reach, Facebook's ad platform remains superior for many DTC brands. Its ad product is more refined, its older demographic has higher buying propensity, and its historical efficiency means that even mediocre ad creative can be profitable, unlike newer platforms.
In the past, Facebook ads were so underpriced that even mediocre creative could generate a positive ROAS through sheer volume. As platform costs have risen, that financial arbitrage opportunity has disappeared, forcing marketers to rely on high-quality creative as the primary driver of performance.
The cost to acquire attention on platforms like Facebook and Instagram is currently inefficiently low, similar to Google AdWords in its early days. This window of opportunity will inevitably close as the market matures and prices rise to reflect their true value.