Facebook's plan B: New ads in News Feed

Facebook logoMove over, Sponsored Stories, you've got company. Facebook today announced that advertisers would be able to pitch members directly from the News Feed with less holistic messages that direct people outside of the social network's walled garden.

The launch, which Facebook is calling a "small alpha test," brings Facebook Exchange-targeted (FBX) ads, which are special ad units served to members based on their online browsing behavior, to the desktop version of News Feed for the first time.

"We wanted to give advertisers and agencies the opportunity to deliver highly relevant ads in News Feed, the most engaging place on the Web," the company wrote in a blog post. "We also believe that ads delivered through FBX will create more relevant ads for people."

The addition of the ad unit will not change the total number of ads people see in their News Feeds, the company said.

Facebook's plan B: New ads in News Feed

Previously, Facebook allowed advertisers to run FBX-delivered ads on the right-hand side on the desktop. This unit's format, called "Page post link ads" in Facebook speak, is more familiar to traditional display ad buyers than Facebook's own native ad unit, the Sponsored Story, because advertisers can tap their own user intent data for targeting purposes and direct people to outside landing pages, instead of Facebook Pages, for conversion-tracking.

The introduction of FBX-delivered ads to News Feed, albeit small to start, feels like Facebook's Plan B revenue-growth strategy. Sponsored Stories in News Feed, on both Web and mobile, sure sounded like the company's Plan A, especially the way Chief Executive Mark Zuckerberg and COO Sheryl Sandberg talked about the units, which offer Facebook Page owners increased exposure for their content, in post-earnings calls with investors and analysts.

In October, the company exclaimed that it was making $4 million a day from the in-stream, Sponsored Story placements by the end of the third quarter 2012.

But since the social network reported fourth-quarter earnings in late January, and stayed mum on revenue from News Feed ads, investors have been increasingly skeptical of the company's ability to grow revenue as it spends more. The stock has slid backward, down about $6 per share, or 20 percent, since it closed at $31.24 on Wednesday, January 30.

Investors haven't exactly rallied around today's reveal, but Facebook's shares are trading up by a few cents Tuesday. Perhaps there's something to this Plan B.

Source: CNET

Tags: Facebook, social networks

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Pokemon GO had the potential to net $1 billion a year
The report said that Hon Hai has invested about US$600 million in India
Market research firm IDC reports that in the third quarter of this year
Customers will only have to shell out 50% of the cost of their Galaxy S7 device
New flagship will launch in 2017
Patent hints at name of the upcoming Surface AIO
IBM, Globalfoundries and Samsung have chosen to use extreme ultraviolet (EUV) light to pattern transistors
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you use microSD card with your phone?
or leave your own version in comments