Facebook to Cram News Feed with Ads for Revenue

Jasmina Lozevska March 28, 2013 0


At first, it seemed like this social network has grown over night and came this far by a blink of an eye. But, few years have passed and now Facebook is under some pressure to grow its revenue. They are now letting advertisers to run different ad types in the News Feed.

The sponsored stories now officially have some company. Yesterday Facebook has announced that now advertisers will be able to contact the members directly on their News Feed. Facebook calls this launching a small alpha test to extend the FBX ads right into the News Feed. This action is because the users spend their time focused on the desktop News Feed, and it will be more productive.

This move by Facebook will not bring more ads that already are shown in the feed but they will be based on the place from which you have been available or online, to be exact. This is useful for the advertisers because reaching people in the News Feed is quite important to show what they have to offer. Facebook wrote:

“We also believe that ads delivered through FBX will create more relevant ads for people. Introducing Facebook Exchange in Desktop News Feed will not change the number of ads people see in their News Feeds.”

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The advertisers with this move will easily offer links to their specific pages. This is a great feature which followed the recent change to the News Feed with specific and different feeds for music, bigger pictures and more. This move makes big sense for advertising and gives the users a much nicer experience.

With these changes, Facebook increased the number of their data sources that gathers information about the browsing habits which gives relevance to the retargeted ads. This has yet to prove as a perfect combination with FBX. According to AdRoll (DSP partner of Facebook) the early results shown that these ads gave x16 return to advertisers for using the platform.

Last year they tested and then launched some Facebook exchange advertises in the right column. Using a cookie based bidding platform, advertisers were able to advertise their market which was based on online-users browsing habits. This has proven to be the strongest ad units ever so they are now a level higher.

The investors haven’t commented about yesterday’s announce but the shares are up and hopefully this Plan B indicates some great things will happen in near future.

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