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Facebook’s advertising strategy could be its downfall


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#1 +V-Tech

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Posted 02 July 2013 - 18:11

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In an effort to increase revenue and keep investors happy, Facebook has begun rolling out more advertisements across its popular social networking site. The company recently announced its latest milestone, revealing that it is now has more than one million companies actively advertising on the site. Not everyone is happy about its new monetization strategy, however. Paul Tassi, a contributor for Forbes, argues that Facebook has so many advertisements that it is beginning to look like a “domain squatter landing page.” He compared the company’s ads to those found on other competing social networking sites such as Google+, Twitter and Pinterest, and noticed that Facebook had the largest amount of advertisements by a wide margin. In fact, both Google+ and Pinterest are ad-free, while Twitter only shows a single “promoted tweet.”
 
My personal Facebook news feed currently has more than eight advertisements on it — a large one at the top of the feed and seven smaller ones on the sidebar. The company also shows content based on a users “likes,” news about a user’s favorite sports team, TV shows and more. Tassi noted that even popular websites such as Reddit feature just a few ads per page.
 
Tassi says Facebook must find a way to increase its revenue and declining share price, however it must not do so at the expense of its users. If the company continues with its current ad strategy, Tassi believes “Facebook is going to start losing market share to sites that don’t treat their userbase like they’re products to be bought and sold.”
 
“Advertising is absolutely a part of the internet, we all understand and accept that, but Facebook is starting to feel like it’s adopted ads as its primary purpose, losing functionality as a welcoming social network in the process,” he concluded. “Facebook needs to do some soul searching and figure out whether it needs to be serving the needs of its million advertisers or its billion users first.”

 

 

 



#2 fusi0n

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Posted 02 July 2013 - 18:16

Most everyone thinks that Facebook is going to "fall" one day just like it's predecessor, myspace.. Just because in the past social media sites have fallen, doesn't mean Facebook is going to as well..  Facebook is pretty much the Microsoft of social media.. they are not going anywhere anytime soon.



#3 thatguyandrew1992

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Posted 02 July 2013 - 18:22

History says social networks fall.



#4 OP +V-Tech

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Posted 02 July 2013 - 18:25

Most everyone thinks that Facebook is going to "fall" one day just like it's predecessor, myspace.. Just because in the past social media sites have fallen, doesn't mean Facebook is going to as well..  Facebook is pretty much the Microsoft of social media.. they are not going anywhere anytime soon.

Of course it's not going anywhere. 

If you took Microsoft as example then Microsoft has competition and there are alternatives to Windows such as Linux, Mac OS, Chrome OS and some other small ones. Having of other the other OS systems and not Windows wont limit you to access the internet for example or doing other things.

Facebook on the other hand, doesnt really have competition right now, people are on Facebook and if you want to stay in touch and communicate with people that are on Facebook you cant do it from any other place.

 

And of course a big enough % of the Facebook users are just addicted to it :)



#5 +timster

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Posted 02 July 2013 - 18:33

I guess Facebook doesn't get enough money from the sale of its users information.



#6 threetonesun

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Posted 02 July 2013 - 18:36

And of course a big enough % of the Facebook users are just addicted to it :)

 

There's a fair number of studies out there that show that engagement, the one thing Facebook had going for it, is falling off.

 

Remember, everyone thought Myspace was cool until everyone's page started flashing and playing music. Make the interface annoying enough, and people will stop going.



#7 OP +V-Tech

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Posted 02 July 2013 - 18:46

There's a fair number of studies out there that show that engagement, the one thing Facebook had going for it, is falling off.

Remember, everyone thought Myspace was cool until everyone's page started flashing and playing music. Make the interface annoying enough, and people will stop going.


Well I doubt Facebook will make the same mistake MySpace did.

#8 McKay

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Posted 02 July 2013 - 18:54

History says social networks fall.

 

They fall because something better replaces them. MySpace replaced Bebo. Facebook replaced MySpace. 



#9 threetonesun

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Posted 02 July 2013 - 19:08

Well I doubt Facebook will make the same mistake MySpace did.

 

I think they already did. How long it takes before it drives people off the site is yet to be seen.



#10 OP +V-Tech

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Posted 02 July 2013 - 19:12

They fall because something better replaces them. MySpace replaced Bebo. Facebook replaced MySpace.

This is true, but who said that there will be something better. It's not easy to create something like Facebook and bring enough people to hurt Facebook. Google tried and it didn't really work for them.



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