Saturday, March 09, 2013

The biggest announcement Facebook didn't make...

Facebook on Thursday unveiled a News Feed revamp that will make content more personalized and engaging. But the reason behind the redesign -- advertising -- barely got a mention.

Facebook (FB) depends heavily on promoted posts in its News Feed for ad revenue. If you "like" a brand's page on Facebook, your friends might start seeing ads for that brand with your name or face next to them.

Yet the old News Feed format didn't give much real estate to brand advertisers, and if you're not "liking" pages and activities, Facebook is making less money off you. It's in Facebook's best interest to keep its users returning to the site, and actively engaging with its content and ads.

 "What drives engagement drives monetization," says Ken Sena, an analyst at Evercore Partners. "For Facebook, the News Feed is its product -- and its way to monetize users." Full story...

Related posts:
  1. Is Facebook losing its cool?
  2. Re-thinking Facebook...
  3. Facebook to pay NO tax for 2012 and will even get tax refund
  4. Nowhere to hide: New Facebook app to track offline users...
  5. Graphic 'Graph Search': New Facebook system reveals too much...
  6. Facebook data and internet censorship: the story banned by

No comments:

Post a Comment