Facebook Advertisement Revenue
Advertisements have always been the primary revenue generation model for any social network. Facebook generated almost $33 billion from providing advertising space to various businesses and individuals alone. A lot of companies have also found an increase in business and revenue due to the capabilities of Facebook Ads. Advertisements are more than a revenue generation model for Facebook; it is also the primary medium for getting more users and hence more activity in the network.
Facebook Ads now in user stories!
About 14 months ago, Facebook introduced its story feature. Facebook story post will remain in a feed for 24 hours time. Then disappear without leaving a trace. Stories are spaces for showcasing some moments for a finite time. And unlike posts in news feed, they won’t show up in places you don’t want them to.
Recently, the user count for Facebook Stories hit 150 million. Facebook took 14 months to reach this mark compared to Instagram which took just five months. The engagement among these stories is good enough to increase net revenue of Facebook.
The ads will typically be 5 to 15 seconds long, and can, of course, can be skipped at user’s will. One of the main points Facebook has to take a note here is that stories engagement has been exponentially increasing, and recent surveys prove that participation in stories will surpass than that in the news feed. This change will mean that necessarily, you will see lesser permanent posts on Facebook, and instead will see more recent and live updates from your network.
It is critical that they nail this feature and as CEO of Facebook Mark Zuckerberg said, Facebook must ensure “that ads are as good in Stories as they are in feeds. If we don’t do this well, then as more sharing shifts to Stories, which could hurt our business.”
How it will profit the businesses
As far as the sellers are concerned, they will get the liberty of extending their Instagram story ads to Facebook, and also a definite performance matrix, to prove the worth of advertising through stories (and probably attract more advertisers).
This new feature also means that there is a lot more space for Facebook. To accommodate advertisers to compensate for the room they lost because of shutting down the sidebars.
Facebook was also spotted testing a lot more cool features for its stories, like the Boomerang, 3D doodling and the ability to shoot 360 photos without having to use a 360 camera.
Recently, WhatsApp also launched new features along with Business WhatsApp which clearly indicate the plan of company’s extreme focus on generating revenues.