Why Facebook Inc (FB) Advertising Daunts Small Businesses: Rob Jewell

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Facebook Inc (NASDAQ:FB) advertising is intimidating a lot of small business because of a combination of factors, Rob Jewell, chief executive officer of Spruce Mail, told Betty Liu in an interview on Bloomberg’s “In The Loop”.

In the interview, the executive said that Facebook Inc (NASDAQ:FB) is focused on making their ad products work. This includes refining ad units and ad types on their network. He added that his company has noticed the social network has come up with a formula for even small businesses to profitably market their products or services on the social network.

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The remarks coming from the CEO of Spruce Mail was in reaction to Liu pointing out that a report from security firm White Ops last year said that about $6 billion were stolen from advertisers in the U.S. by fraudsters who spike clicks on ads with bots.

Jewell pointed out the big companies like Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL) have huge teams dedicated to preventing this sort of fraud from happening.

Meanwhile, at a later part of the interview, he noted the main factor that deter small businesses from really trying out Facebook Inc (NASDAQ:FB) advertising. He said, in reaction to Liu pointing out that advertising cost on the social network is increasing, that costs are rising because advertising through the social network is proving to be effective.

“There’s really a different reason that most small and medium businesses are kind of sitting on the sidelines: it’s mainly because Facebook advertising can be complex. A lot of business have tried to go at it alone, taking the wrong strategy, and haven’t been able to measure the results from their investment,” he said.

At an earlier point in the interview, however, the CEO pointed out that his company sees companies who know what they are doing on the social media network implementing profitable campaigns. For example, he said that his company sees clients getting an average of five times the investment they make on ad spending on the social network.

Facebook Inc (NASDAQ:FB) shareholders includes Karthik Sarma’s Srs Investment Management. The firm reported 5 million shares in the social media giant by the end of 2014’s second quarter.

Disclosure: None

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