Facebook had earlier announced that the small size ads on the right hand side (RHS)will be replaced with fewer but larger ads, and Facebook plans to roll out the new ad format this week (in time for 3Q). Data from early tests suggest a significantly higher click-through-rate from users shown with the new design vs. the old (which makes sense as ads are higher quality and less cluttered), suggesting that the new ad format provides a more engaging user experience as well as potentially higher value to advertisers. It has been our view that Facebook’s early RHS ad format was low quality, and Facebook’s continued improvements to ad formats, targeting, and user experiences is consistent with our thesis that Facebook still has significant room to increase monetization. Continue reading Facebook Revamps RHS Ads to Accelerate Revenues
LinkedIn continues to evolve and enhance its solutions for marketers. The initial focus on directly sold premium CPM-based sponsorships and guaranteed Continue reading How LinkedIn earns Quarter of its Revenues form Advertising ?
Social Networking Giant, Facebook recently began testing auto-play videos in users’ mobile news feeds. When it does eventually launch its video product, the first videos will be user generated content, and we won’t expect to see video ads until the format has been refined over time. This strategy should get users comfortable with seeing auto-play videos in the news feed; likely minimizing user blowback when ads are introduced.
Apart from Vidoe Ads, Instagram looks ripe for monetization, especially given its millions of coveted millennial users. But monetization will likely take time as it tests & refines new ad formats while prioritizing the user experience.
Facebook Ads and the Ad Exchange Continue reading Will the new Facebook Video Ads Product become Billion Dollar Business ?
Social Networking Giant, Facebook has reported softer-than-expected advertising revenue and slower-than-expected expense growth. Most of FB’s clients allow the company to show their ads across both Desktop and Mobile, and thus this quarter’s ad revenue mix is a reflection of FB choosing to serve more impressions on mobile devices
Mobile represented approximately 30% of total ad revenue in the quarter, or $374mn, up 22% sequentially. As such, the implied daily run rate for mobile was $4.25mn versus $3.3mn last quarter. Given the absolute mobile number came in above the Street while total ad revenues were in line, this would imply mobile revenue cannibalizing the desktop ad revenue which was reported at $871Mn. Continue reading Facebook Monetization – Mobile Vs Desktop