Monday, October 1, 2012

Facebook Inc (NASDAQ:FB)’s New Ad Network Will Revolutionize the Advertising Industry

Facebook Inc(NASDAQ:FB) will apparently change the face of advertisements forever, according to Sheryl Sandberg’s (CEO of Facebook) interview with CNBC on Monday. The company’s new mobile app has been successful in engaging users and the number is growing every day. In fact, the mobile platform is much more popular than the traditional desktop one. The promotional updates are engaging users about 8 times more in the mobile world than it would on a desktop.

Will FB Rebound After The Recent Slump? Find Out Here

Advertisements on Facebook have garnered criticism in the past, but Sandberg states the numbers tell a different story. The return rate of mobile users is around 20% everyday as of now. Research conducted in the last year have revealed that 70% of the ads showed lucrative returns while and almost half them were more than 5%. The social network has also come up with a 90% accurate technique to implement niche ad targeting, in order to filter their audience.

News about Facebook developing an ad network to take on Google has been around for sometime, but very soon, they will eliminate the “clicks equals sales” model of advertising, according to Reuters. Datalogix also conducted a survey where Facebook ads clicked by users comprised less than 1% of in-store sales. Instead of generating click counts, Facebook is now capable of sharing feedback about the percentage of in-store sales via campaigns. Company sales went up slightly by 2.7% on Monday.

Shares of FB extended gain in Monday’s session and rose another 1.52% after surging 6.60% in Friday’s session.

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