Friday, 10 May 2013
How long Facebook will earn from ads?
The ads are in the foreseeable future will be a fundamental source of revenue for Facebook - says Marcin Brus from the Polish branch of the company. However, the question arises: how long this model will be profitable?
The fact that Facebook needs to find an effective monetization model is said to be from the time when the first rumors announcing the imminent debut, the social network created by Mark Zuckerberg. IPO's been hailed as a success, but then the company's share price fell by half (now hovers around 27.5 dollars. Per share), which raised further doubts about the ability of business managers Facebook. "The old truth" is also true that Facebook can not cope in the segment of mobile devices.
Read also: Facebook will change beyond recognition?
- The ads are in the foreseeable future will be a fundamental source of revenue for Facebook - says Marcin Brus office of Polish Facebook.
Making the commercials is a business model which is based on all media. In this social media. Over the last few decades he worked flawlessly. The end of the first decade of the twenty-first century has shown, however, that too much dependence on revenues from advertisers could have disastrous consequences, as painfully on her skin felt paper newspaper. In times of crisis and economic slowdown, every dollar spent on advertising is viewed in detail and often returns to the portfolio rather than sail to the media.
- Relying exclusively on the business model of advertising revenue is not the best idea. Therefore, the entire ecosystem develops Facebook games and invests in mobile - says Artur Kurasiński, investor and blogger. - I can imagine a situation in which Facebook introduced fees for additional services, but it would have to be something really "super, hyper and extra" - adds Kurasiński.
Keep a good balance
When it comes to Facebook to find a good business model relies to a significant extent on finding an effective model of serving advertisements - on the line with revenue on the one hand and tolerance users on the other. An important factor is also the brands that want to advertise on a portal Zuckerberg.
Read also: Fall swineherd with Facebook
- That's how long Facebook will earn from ads depends on how you will be perceived by the brand. Coca-Cola rather not need Facebook, which itself points out, but there are companies that without it they can not function - says Michał Bonarowski, a specialist in digital communications.
Facebook declares that maintain an appropriate balance between the efficiency of the business and the user experience is at the heart of the company.
- Smart prepared and targeted ads are not considered by users as undesirable content, but as part of social history, which follow an interactive magazine which wants to be on Facebook - says Marcin Brus. - Very carefully follow the reactions of users to commercial content. We have no alarming signals - provides.
Video and mobile is a key
In addition to maintaining an appropriate balance, seeking an effective model serve ads on Facebook are also the exploration of new media - video ads and commercials in mobile'u.
- Facebook is definitely a "mobile company", but that perception could be obliterated by, let's be honest, not the most perfect mobile application - frankly admits Martin Brus.
The fact that Facebook really is a "mobile company" is to provide, among others. the introduction of Facebook Home, which overlays Android mobile operating system, which is intended to make some smart phones can become a long-anticipated "Facebook phone". Zuckerberg's company is also developing its mobile applications - the "traditional" Facebook and Facebook Messenger, which is always improved the function ChatHeads.
Read also: Facebook Home, which is run ahead
The purpose of these procedures is actually one: an introduction to the company offers the best of targeted and how "najprzyjaźniej" display ads on mobile devices.
- Facebook still has to make up the gap with the competition when it comes to mobile. Mobile can be crucial for the company if it is true that the ads displayed on mobile devices are more accepted by users and better monetyzują - says Michał Bonarowski.
Recently, it became too loudly about the fact that Facebook reportedly plans to introduce a new advertising format, the video ad. Apparently, users could not watch more than three ads of this type daily.
- Video ads are the product desired by advertisers. At the moment there are no official reports, to which I could relate to, but I can assure you that if we introduce a video ad is not compromised user experience - and Marcin Brus.
Advertising eternally alive?
The media industry is increasingly hear that the business model of relying solely or largely on revenue from ads is a simple way to kill a business in the long term. But not all share the same opinion.
- Revenue from advertising is a business model with good prospects, and his criticism is based on a misunderstanding rather the fact that the stream is not shrinking, but shifted to more efficient channels. Facebook thanks to the "big data", the demographics, behavioral, context is next to Google and Amazon ads champion - says Michał Brański, co-founder of o2.
Read also: Facebook - a good place for the naive?
This view is also managers Facebook. - The potential of the advertising market is still very large. The experience of other companies show that it is not uncertain revenue stream. - Says Brus.
- All possible data show that the business model based on advertising revenue is declining. Banners, which has long had died were still alive - is echoed by Michael Bonarowski Brusiowi.
About how long Facebook will make a profit from advertising in the long run will decide one key factor: the effectiveness of ads presented in this social network. Theoretically, the company is in the hands of all the advantages that translate into skutecznść facebookowego marketing.
- The advertising market is going towards solutions that allow you to precisely target your ad to a specific group, and easy to measure its effects. Becoming increasingly important remarketing and "trade data". Facebook has all the elements needed for a puzzle: a huge range, unlimited knowledge of the users and is constantly developing tools to measure, so we can expect further dynamic growth - says Mariusz Gralewski, creator of such services as GoldenLine and ZnanyLekarz.
- There are many examples showing that Facebook just helps generate sales - adds Marcin Brus. In Poland, the most famous example of the effectiveness of advertising on Facebook is the company Złotewyprzedaże.pl, which had once wrote in "Forbes". Other examples, which boasts of a service Zuckerberg are successful advertising campaigns conducted by companies such as British telecom O2 and Vodafone or Volvo.
Everything indicates, therefore, that the rumors of the death of Facebook business are slightly exaggerated and even at least for the next few years, the company has secured a place at the spring in advertising.
Posted by Sxintel at 01:57