Wednesday, August 22, 2012

Facebook Inc (NASDAQ:FB) To Go the Google Way in Sponsored Search Results

Social networking site Facebook Inc(NASDAQ:FB) is attempting other ways to generate revenues such as using the search feature function.

It has a sponsored search results feature, whereby if a user searches for a page or  friend some of the search results that will be thrown up will be either ads or sponsored links to games, applications and similar other pages.

It is similar to how Google search results are thrown up with ad-based results frequently coming out at the top or on the side bar. In fact this marks the entry of Nokia into an area that has hitherto been dominated by Google. The internet search giant's search engine optimisation feature that works on an algorithm which changes constantly, has led to the creation of a brand of specialists who work only on this area.

Can FB Rebound After The recent Turmoil? Find Out Here

For marketers and businesses who want to convert their ads into traffic from users and ultimately click-throughs for generating revenues this is a powerful way for them to directly reach the customer.

The advertisements that will appear in the search results will be in addition to the ads that already exist on the right hand margin of the Facebook page.

With this feature Facebook is ensuring that it leverages on the information that it has about its users and the ads that are thrown up will be targeted depending on the interest and activity of that particular user.

So the users will be subjected not to the ads that are already there on the edge of the page but also have to contend with advertisements every time they key in a search result.

Currently Facebook's sponsored ads are dominated by the company's largest app contributors including Zynga and Match.com.

Shares of FB rebounded 1.50% on Wednesday.

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