I while back I wrote how in order to monetize ads, Facebook would end up being Google's REAL competition. http://bit.ly/2RNExM Not that Facebook would become a search engine, but that eventually everyone's "social networking" details would follow them along within their browser.
So I think of Facebook's ad opportunity not advertising on the Facebook site, but on external sites ala Google Adsense ... This will be how Facebook monetizes.
The other trend I see is that more and more social networks (and all brands) are realizing that advertising TO a consumer is so web 1.0 . We are transitioning to a world more and more where it is about interacting with your consumer, not cramming an ad down their throats. www.twitter.com/A_F
Follo
PaulGlazowski
· 1 year ago
Through widgets, perhaps. For example, niche social networks that add Facebook extensions (think MyBlogLog sort of stuff), would include advertisements. Games and various apps embedded in third-party sites might enable that option, too. There's only so far you can go with that, though.
Google Adsense is generic enough that it can basically map the entire Web. Then again, perhaps the financial gain for Facebook could be worthwhile regardless.
Tom
· 1 year ago
Facebook nees an integrated payments system to allow users to buy various services and products around the site and particularally on thier application network.
Allowing applications to leverage an integrated payment gateway would have a profound effect on how the application newtwork operated. It would greatly stimulate the development of new and more 'worthwile' applications.
Games and other entertainment related apps could charge mirco payments for certain features or rewards. It would stimulate a great deal more vendor type apps selling products. Online service providors could charge for thier service with subscriptions.
PaulGlazowski
· 1 year ago
Subscriptions, sure. If third-party SaaS providers build applications, Facebook can do an iPhone App Store like 30/70 revenue plan. But the apps of course need to warrant payment. I wouldn't pay for a superpoke, for instance. But if you've got some serious software that integrates your friends list, that could work.
Games, as you mention, are prime for payments.
Serenity Thompson
· 1 year ago
what i like about facebook is similar to what's likeable about cuba: very little advertising. too much advertising will turn me away. i think there is something for would-be FB advertisers in "Groups" - users can add the group to keep up with a specific company (Serena Software), product (clif bars), movement (Slow Food Nation), etc. all that is happening now. build those groups, offer cool conversations and promos and you have a gung-ho audience right there in front of you. perhaps FB can monetize by offering add-on services for these advertisers - an upgraded communication interface (email, chat), flash, + more.
widgets - FB can charge advertisers, list wigdets for user viewing/adding. to lend some awareness to the widget initiative, FB could promote to users via 200 character newsfeed item "widget of the day"
chris
· 1 year ago
Facebook needs not one, but multiple revenue streams. If we agree that search will work and offers some sustainable revenue, then I think they HAVE to do it. It may not be the "killer" revenue stream that we're all looking for, but it's certainly a start. The key then is tweak and improve it over time. It isn't a perfect solution, nor will it ever be, but they've got to get in the game.
PaulGlazowski
· 1 year ago
That's true. But there's trade off. You can't do everything and please everyone. If Facebook can manage to increase revenue somehow else - and it will presumably do so with ads - it needs to get more inventive.
Might be hard to do, given its deals with Microsoft. Microsoft isn't Facebook. One is clumsy and slow to move. The other is somewhat clumsy but quick to move. It all depends on who calls the shots when it comes to go time.
Brian Dillon
· 1 year ago
I do not have any concrete metrics but I don't believe search is used substantially by facebook users. And nearly all searches are for an individual profile. The reason why Google and other search engines work is that advertisers are willing to pay a premium to get in front of buyers who are already demanding or have interest in their product. A search for ford motors is very different then a search for someone with the last name ford. Untargeted advertising like that would perhaps only be good for increasing brand awareness, but certainly not to generate sales.
To be honest I think their ad model right now is quite good and I see a few minor improvements that could be made. Right now you can target people based on interests that they have posted on their profile. This way a band could send out an add for a new record to people who already have listed them as a favorite. Facebook should find out a way to record richer details about each person interests. I think I saw a post earlier about microsoft creating a facebook app that has people tag each other and generate rankings. This type of data would give even more value to advertisers.
Additionally advertising on facebook is only becoming more and more popular. I check facebook about twenty times a day, and over the last two months I've seen a very healthy and steady growth of advertisers. Also, I am opening a e-commerce site and whereas before I would base my launch around adwords I am now going to facebook first. There is less competition with advertisers and I have the type of product that some people may not even know they want yet so i can get in front of eyeballs that I could never get in front of using google adwords.
IdeaTagger
· 1 year ago
As I have stated before, I see this a lot more simply:
1. Facebook wants to be or to host the ultimate utility, powered by the social graph. 2. Facebook also wants to make lots of money. 3. What is the most lucrative utility that one can provide? - Solicited Information. 4. What type of solicited information is best provided by Facebook? - Information requested of and provided by the social graph, i.e. friends and friends' friends. 5. So what fits the bill? - Q&A 6. How might this work on Facebook? - 6.1. Slightly modify the status update feature to encourage people to ask questions and display in their friends' feeds: "X wants to know: blah, blah blah". Display relevant ads against the feed item and the comments (answers) it attracts. 6.2. Extend the partnership with Microsoft to allow users to turn their unresolved searches on Microsft's Live Search into Facebook questions.
Brian Sherwin @ Myartspace Blo
· 1 year ago
Most people want a free and secure place to network. If Facebook charged for certain features that they now offer for free they would just be opening the doors for another free social networking site to pop up.
paul
· 1 year ago
Facebook can't make money because they have no real technology or innovation. All facebook is, is a people directory of sorts with silly games on top. The rest of facebook has ZERO...YES ZERO technology.
Sorry, they have no algorithm, no patent, nothing, just a an idea that Zuckerberg ripped off and Theil, the neocon silicon valley VC, took mainstream with huge piles of money and lots, LOTS, of PR (like mashabe writing about them every second). Lets not forget Facebook's 47 million in VC funding before the MS deal, which i am sure went to infrastructure and PR (to fool everyone into thinking this thing is cool). Theil said it best, when he described people as sheep..and facebook is his grand NEOCON experiment.
So how can facebook make money? Go back to the student niche and you will be much better off financially. Lots of money in student services.
All Comments
So I think of Facebook's ad opportunity not advertising on the Facebook site, but on external sites ala Google Adsense ... This will be how Facebook monetizes.
The other trend I see is that more and more social networks (and all brands) are realizing that advertising TO a consumer is so web 1.0 . We are transitioning to a world more and more where it is about interacting with your consumer, not cramming an ad down their throats.
www.twitter.com/A_F
Follo
Google Adsense is generic enough that it can basically map the entire Web. Then again, perhaps the financial gain for Facebook could be worthwhile regardless.
Allowing applications to leverage an integrated payment gateway would have a profound effect on how the application newtwork operated. It would greatly stimulate the development of new and more 'worthwile' applications.
Games and other entertainment related apps could charge mirco payments for certain features or rewards. It would stimulate a great deal more vendor type apps selling products. Online service providors could charge for thier service with subscriptions.
Games, as you mention, are prime for payments.
widgets - FB can charge advertisers, list wigdets for user viewing/adding. to lend some awareness to the widget initiative, FB could promote to users via 200 character newsfeed item "widget of the day"
Might be hard to do, given its deals with Microsoft. Microsoft isn't Facebook. One is clumsy and slow to move. The other is somewhat clumsy but quick to move. It all depends on who calls the shots when it comes to go time.
To be honest I think their ad model right now is quite good and I see a few minor improvements that could be made. Right now you can target people based on interests that they have posted on their profile. This way a band could send out an add for a new record to people who already have listed them as a favorite. Facebook should find out a way to record richer details about each person interests. I think I saw a post earlier about microsoft creating a facebook app that has people tag each other and generate rankings. This type of data would give even more value to advertisers.
Additionally advertising on facebook is only becoming more and more popular. I check facebook about twenty times a day, and over the last two months I've seen a very healthy and steady growth of advertisers. Also, I am opening a e-commerce site and whereas before I would base my launch around adwords I am now going to facebook first. There is less competition with advertisers and I have the type of product that some people may not even know they want yet so i can get in front of eyeballs that I could never get in front of using google adwords.
1. Facebook wants to be or to host the ultimate utility, powered by the social graph.
2. Facebook also wants to make lots of money.
3. What is the most lucrative utility that one can provide? - Solicited Information.
4. What type of solicited information is best provided by Facebook? - Information requested of and provided by the social graph, i.e. friends and friends' friends.
5. So what fits the bill? - Q&A
6. How might this work on Facebook? -
6.1. Slightly modify the status update feature to encourage people to ask questions and display in their friends' feeds: "X wants to know: blah, blah blah". Display relevant ads against the feed item and the comments (answers) it attracts.
6.2. Extend the partnership with Microsoft to allow users to turn their unresolved searches on Microsft's Live Search into Facebook questions.
Sorry, they have no algorithm, no patent, nothing, just a an idea that Zuckerberg ripped off and Theil, the neocon silicon valley VC, took mainstream with huge piles of money and lots, LOTS, of PR (like mashabe writing about them every second). Lets not forget Facebook's 47 million in VC funding before the MS deal, which i am sure went to infrastructure and PR (to fool everyone into thinking this thing is cool). Theil said it best, when he described people as sheep..and facebook is his grand NEOCON experiment.
So how can facebook make money? Go back to the student niche and you will be much better off financially. Lots of money in student services.