Will This Help Facebook Turn Things Around?
Facebook (NASDAQ:FB) is testing a new kind of advertisement methodology by adding ads to news feeds even if the user or his friends have not actively liked the brand or the product on the social network. Advertisers will need to pay to display their Pages in news feeds without having to create a fan base first.
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“We are beginning a very small test that will allow marketers to promote Page posts to people beyond their fans in the news feed,” a Facebook spokesperson told CNET. “These ads may appear on both desktop and mobile and will look like other Page post ads in news feed with a sponsored label. This is a small test and we’re constantly gathering feedback from people on how to improve our ad experience.”
The under-pressure Facebook (NASDAQ:FB) has unveiled several new ad products over the past few months, including adding unsolicited ads from users’ fan pages into news feeds and a product that uses real-time data based on user locations.
Facebook (NASDAQ:FB) said last month that half of its 955 million monthly active users were now also accessing the website on mobile, adding to the urgency for the social network to make advertisements on that medium more robust. Facebook’s revenue depends heavily on ads, but its overall ad impressions in the U.S. dropped 2 percent from last year largely because of the web-to-mobile shift.
The company, whose share price has tumbled almost 48 percent since its IPO on May 18, reached a new low on Friday at $19 after the end of restrictions on share sales by some of its biggest investors. More than 271 million shares become eligible for sale on Thursday.
Shares of Facebook (NASDAQ:FB) closed Friday at $19.05.
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