Thursday, November 28, 2013

Facebook's Advertising Innovations

Despite the fact the Facebook's stock price has grown over the past year, shareholders and investors were worried when Facebook officials told the public that they were not going to be able to "cram more ads into user's news feed." With Facebook's advertising-driven business model this posed a great threat on the shareholders. Another worry is the fact that reports have shown that teen are using Facebook less every time.
One way of offsetting the problem is putting forth better quality ads that are more suited according to each person. Another proposed method is introducing 30 second video ads that are said to generate almost 2 million per day.
This news regarding the lack of room for promoting more ads while it may seem as a worrying factor should come to no surprise. I generally have noticed that almost every other ad on Facebook is a sponsored news or an advertisement. It would be wise for Facebook to limit the amount of clutter in its site. I certainly agree that the way to continue to grow will be to provide better quality advertisements. In regards to the videos they must be of great appeal. Lastly, Facebook needs to become much more appealing and interactive since it is losing much of its market share to other competitors.

1 comment:

  1. I agree completely. Facebook has too many ads. Not only that it is tracking what we search all the time. One quick sure on wedding flowers will lead me for 2 weeks worth of flower ads on Facebook. This giant is looking for any way to be more profitable, but in reality it is just annoying its customers. They should look into another way of becoming profitable because rumor has it that they are on the down hill turn for the company with so many other alternatives.