Facebook are establishing themselves in Norway with an office, to provide better service to advertisers who are fleeing from traditional media.
Until now, the global web giant had Stockholm as its only permanent office in Scandinavia. In January, this year Facebook announced that they would also establish themselves in Oslo.
– We are pleased to move closer to Norwegian brands and advertisers, said Country Manager Rune Paul Seth to Media 24. On Tuesday, the Oslo office officially opened with greetings from Prime Minister Erna Solberg.
It is about ads
Media Analyst and concept developer at Polaris-owned iNord, Marius Karlsen, says Norway is an exciting market for Facebook.
– It is largely about the ad money and about being more accessible to advertisers. It is in the advertising where all the fun is, for both Google and Facebook. Therefore, sellers will be stationed there, said Karlsen.
Facebook and Google in recent years have been tough competitors for ad money from the big media houses in Norway. The trade organization INMA publishes monthly reports on sales in the digital advertising market.
During the whole year, the revenues have gone down compared with the same month last year. In April, it was 9 percent lower than it was in April 2015.
– Money is moved from Norweigan media to Facebook and Google, is the main explanation by CEO Kenneth Eriksen.
Still, the business sector uses a lot of their marketing budget on traditional media.
-Most of the media houses report that they have between 60 and 70 percent of their revenues in traditional newspapers. That is why it is too fast to assume that 60-70 of the advertisers reach their target groups better than on other channels. Facebook knows this. They are cheaper and can target their ads very accurately, says Marius Karlsen to news agency NTB.