Have you ever stopped and wondered how in the world a site like Facebook is able to stay afloat? All we do on Facebook is post status updates, upload pictures and videos, etc. To date, all of this is free of charge. Who pays the salaries of those that update the software or tracks your every move?
Answer: ADVERTISING!
Companies pay top dollar to advertise on Facebook because they are able to target customers based on the information they share, status updates given, friends list, geographical location, etc. In the first quarter of 2012, advertising was responsible for 82% of Facebook’s revenue (money.msn.com). Other ways that the company is able to generate revenue is through games like Farmville where users can pay for supplies, equipment, and livestock. Facebook just recently added a new feature that allows you to send gifts to your friends for their birthday (for a fee, of course)!
Unfortunately, there is no way to shut off ads on your Facebook profile page but there are ways to “influence” your settings. Here are some steps provided by Facebook:
· Add more of your interests in your profile to see more of your favorite advertisements. {My favorite? None at all…}
· If you see an advertisement you are not interested in, click the “X” on the ad to close it on your page. Facebook will kindly track your movements and “try not” to show you similar ads again.
What do you like (or not like) about seeing these advertisements on Facebook? What are your thoughts about Facebooks new ad system where they are directly linked into your News Feed?
Like the one below, for Lake Norman Preparatory Academy, which was on my News Feed? How in the world does this relate to my interests? This is a Mecklenburg County school, grades K-8.
Sources:
Recently on my facebook page, I have began to see more advertising on my home page. Up until the past few weeks, I never had a problem with the amount of advertising that was sent to my home page. Right now, it seems that advertising is starting to increase each and every year, by some degree. Most of the advertisements are just wasting my time, advertising me to sites and programs that I have no interest in attending or becoming part of. There are some good advertisements on facebook as well, like the the sports advertisments I see when the time gets close to a major sporting attraction, such as "The Masters". I believe the news feed in advertisment is very beneficial to both the programers at facebook and to the facebook audience as well. The direct news feed gives me new information about specific advertisments. It almost seems like they are your friends in a way, because I became so accustomed to looking at all of the news feed, and relating it with my friends. This new feature seems like an added plus for the advertisment companys, giving you direct knowledge about all of the different advertisments out there in the country and in the world.
ReplyDeleteAndrew Smith
Facebook has definitely increased their volume of advertisement. I for one am not bothered by the advertisements being directly inserted into my news feed. I think I will delete my interests so perhaps the amount of advertisements will decrease. I think the transition of advertisements from the sidebars of the page to directly in the news feed is a logical choice on Facebook’s part. They know that each member has their eyes focused on the center of the screen as they cycle through various news stories and status updates from their friends, obviously to increase ad exposure they force the advertisements directly into the view of the user, it’s pretty smart and I am sure they charge a premium price for that specific ad placement. I am not a fan of the advertisements that do not relate to my interests. I think that is the only downside I see to this strategy. From a business standpoint, I believe it was a smart move and I can only imagine after the significant losses sustained by investors during Facebook's IPO, the call for a change was anything but subtle. I think that advertisement on Facebook will continue to increase and the methods will become even more intrusive.
ReplyDeleteKyle White
Facebook advertisement has definitely increased as well as You tube, Google, and many other sites. From my point of view, I believe they are very annoying and makes me not want to visit these sites. What I think about Facebook is that it has change over the years. It is not the same as it was before it was so popular. Now, you are "attacked" with all types of advertisement that want you to subscribe on pages, also they offer free products when they really aren't. Good for business, but a nuisance to users on Facebook.
ReplyDeleteI have definitely noticed the increase of Facebook advertisements. It is becoming more and more annoying. I feel like every time I get on Facebook the advertisements are completely filling up the page. I also think they are all advertisements do not even relate to me. I do not want to have any advertisements, but I know they are a part of Facebook to make revenue. Since the new advertisements are here to stay I guess the best thing to do is update your likes and interest so more advertisements that are relevant to you will appear.
ReplyDeleteFacebook is becoming one of the leaders of internet advertisement sites. What do you think the future for Facebook? is it eventually going to be more as an advertising site rather than a social network ? and whats the impact on society about Facebook becoming a an advertisement site ? would that open the door for other social networking sites to be more popular ?
ReplyDeleteMustafa Alaswad
After I read this blog and some of the comments I wondered why I had not noticed the increase of advertisements on Facebook. Logically it makes sense for there to be an increase. Facebook is a business after all and most businesses constantly strive for higher revenue. Increasing advertising increases revenue. So why have I not noticed this advertisement increase? I think mainly it's because I rarely access my Facebook account from and actual computer (laptop/desktop). 99.9% of the time I use my phone or iPad. When I use these mobile devices I don't see the list of advertisements on the right side of my news feed like I do when I use a computer.
ReplyDeleteI personally don't mind the ads on Facebook, simply because it is something else to look at; and because it is targeted to me, I am more than likely interested in that type of stuff anyway. Also, who doesn't want coupons, ya know? If the ads were not targeted ads, I might be slightly annoyed.
ReplyDeleteHeather Roberson
Facebook is getting heavier and heavier with the advertisements! At one point, you would just see them on just the sidebar, now they place ads all throughout your wall! Personally, I'm always a little weary of clicking on ads posted on the web, just because some ads are scans and some can, essentially, mess up your computer. Clearly, there are many people that do actually click on these ads, considering this is most of their revenue. I'm not exactly sure what the statistics are, but I would go out on a limb and say that MOST users don't even click on them. Companies just pay for the exposure to these ads that most people don't give the time of day.
ReplyDeleteI don't really like the advertisements on Facebook, and honestly don't pay them much attention. However, I have noticed how they are directly linked to the types of interests that I have wrote about in my profile. I also see ads for links that my friends may have clicked on. I have also noticed how you can send a friend a gift through Facebook. I definitely think it's an interesting feature, but I probably won't use it. However, it would be quite convenient to send an e-gift card for an out-of-town relative or friend on their birthday, so I'm sure that this will also help increase their revenues.
ReplyDeleteLike others have stated here, I don't really like the advertisements that show up on my Facebook. I've never really bought anything online through one of those advertisements, and come to think of it I don't think I've ever seen anything on those ads that have urged me to purchase something I've seen at a later time. I realize that ads, however, are the primary revenue source for Facebook as well as Twitter and other social media sites. With that said, if I had to chose between paying a subscription fee verses having to have those ads, I'll gladly choose the ads. I can easily tune them out, which I'm accustomed to doing with ease, and do what I intend to do on social media without having looked at one single ad. In fact, after having read this post I quickly opened Facebook to see just what was showing in my "ad section" and it was quite diverse; kind of comical even.
ReplyDeleteLike some of the others, I don't mind the ads on Facebook. I actually do like the fact that they are at least relevant to me, most of the time. Some ads have actually appealed to me enough for me to click and find out more. The ads on other sites, like YouTube, REALLY annoy me because they slow me down by locking the video until the ad is finished.
ReplyDeleteAm not suprised. I feel like nothing is ever really "free" when it comes to the internet. I have gotten virus before and there are always stories of how people commit fraud and access personal information. I feel like if I want to buy something than Ill buy it. I don't want some advertisement trying to sell me something if am just on the internet looking for information or talking to friends.
ReplyDelete