Facebook Ad Revenues to Exceed Google Ads on Long Term

?Hussein Fazal, who is an author and CEO of AdParlor, thinks that Facebook will someday get more revenue from ads than Google. AdParlor in itself is a technology company which manages ads, particularly for advertising campaigns within Facebook. If this was announced just a few years ago, this would have been deemed as a ridiculous notion. That is because these ads in Facebook are so small and located to the right hand column where it is barely noticeable with all the things you can do within the social networking site.

On the other hand, these ads have become more effective over time through hyper targeting. That is, Facebook now has a higher capability of gathering personal information from its users, and these information can then be used to deduce the interests of a particular user, and display to that user the kind of ads that he or she is most likely to respond to based on his or her interests. This targeting mechanism for ads is now highly improved in terms of its algorithms. Thus now, despite of the seemingly subtle positioning of the ads at the right hand column, these ads have become more affective.

Another thing that is helping Facebook ads right now is that Facebook has offered premium ads for agencies and brands. The ad revenues for Facebook are so good; for 2010 its 2 billion dollars, and it is estimated that by the end of 2011, the ad revenues for Facebook will go beyond 4 billion dollars.

Source: http://feedproxy.google.com/~r/JackLiberty/~3/nRDW45-WlM4/

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