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Advertising bringing in business for Facebook
- February 2, 2012
- Posted by: admin
- Category: Uncategorized
Facebook also faces intense competition for advertising dollars, something it acknowledges in the “risk factors” section of its I.P.O. filing. While advertisers will likely choose
to be on both Facebook and Google, they will inevitably compare results they get from both.
Some analysts think Google may have the edge in such a competition.
Google users tend to be looking for something specific. This makes it easier for advertisers to direct their ads at potential customers, analysts say.
“Visually, Facebook ads are eye-catching, but in terms of accuracy of targeting, they are not even close to Google’s ads,” said Nate Elliott, an analyst at Forester Research.
“A lot of the companies we talk to are finding it very hard to succeed on Facebook.”
However, the high level of interaction on Facebook could prove valuable to advertisers. “At Facebook, you are looking at people’s interests, and what they are sharing,” said Gerry Graf, chief creative officer at Barton F.
Graf 9000, an advertising agency in New York that has used Facebook for clients.
If Facebook becomes a place where people recommend, share and buy a large share of their music and movies, such a business could generate large amounts of advertising revenue, as well as any user fees.
“Facebook has become the biggest distribution platform on the Web,” said Daniel Ek, the founder of Spotify, a service that accepts only Facebook users.
This information is taken from http://dealbook.nytimes.com/