Facebook Inc (NASDAQ:FB) refuses to be daunted by reduction in sales or not performing up to the mark as an IPO. It has now started a new campaign where Pages can show posts to those people who are not their fans. This will be done via a web and mobile news feed ad unit and the Pages need to dish out a certain sum to do so. This approach will help Pages to interact with more people and they don’t need to depend on through ads in the web sidebar or Sponsored Stories.
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The most powerful content of the Pages will be available to all users of Facebook, but even then people are debating the usefulness of these new non-fan news feed ads. Facebook has stated that this approach is still undergoing a soft launch phase, where a certain group can see the ads and only some business can utilize the new ad unit.
A growing cause for concern is that the news feeds of users will be brimming with ads and might annoy them. Facebook has reported that it understands that too many ads will create an issue, so they have set a limit of the number of ads on a particular news feed. The specific limit is not known as of yet. The reactions of users will be closely monitored during the test phase as some might feel extremely disturbed if random ads keep popping up on their feed.
Earlier, business had only one way to expand their fan base – purchasing fan bases. Till date a lot of moolah has been spent in such schemes, but with the introduction of a new ad unit, a Page can easily reach out to numerous news feeds all over the world and increase its fan base. Facebook might have to deal with the possibility of advertiser faith coming into question in the context of the importance of the earned media available through Pages. It might seem a little too aggressive on Facebook’s part, but only time will tell if the approach is successful.
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Shares of FB ended higher by 4% to $21.20 on Wednesday.