The social networking mammoth plans to become a giant in ad industry as well. It is placing its eyes on those millions of dollars which are rolled out in the Internet advertisement market. Since its inception back in 2004 by Mark Zuckerberg in his Harvard dormitory, till today when it has become the number one site in the United States in context to page views,Facebook’s main source of income has been the third party advertisements which they used to sell on Facebook.com. Despite of having investors like Microsoft, Accel Partners, tycoon Li-Ka-Shing from Hong Kong, Facebook is still way behind in their revenues in comparison to the ad-giants like Google Inc and Yahoo.
Thus in order to become a big player and make its mark in the global online ad market, Facebook has hired David Fisher last month as Vice President of advertising and global operations. David’s contribution to Google’s advertising will certainly be remembered as one of the pioneering successes of Internet marketing.. He was in the core team in designing the Google’s ad network which made Google the godfather of the online ad industry.
The facts known up till now about the change in Facebook’s structure as a Website is not known yet but news confirm that Facebook is working on a project called Open-Graph under which it will offer excellent intermingling features with third party Websites. You will be able to read all business journals, read your favourite news article, click on like button if you like it and also know simultaneously what your friends are doing. Companies related to advertisements on Facebook believe that it will completely change the definitions the way content flowed on facebook; it is a giant leap and will take Facebook to new heights. But still there are several old knights in the online ad world who think that this change in Facebook won’t even let them come close to Google’s dominated paid search business.
Talking about Facebook’s new move, there have been speculations that it will raise privacy concerns for its 400 million registered users as their complete data of their likes will be utilized by other websites to understand trends and come up with youth-oriented ads. But Larry Yu, Facebook’s spokesperson assured that they are not making any changes in their basic ad policies and they have always been able to collect likes and people’s interests and advertisers will be utilizing this data with full anonymity. Facebook has been under this radar of privacy problems since quite a long time these days to the extent that even one another issue was brought up in American Senate.
Well, what remains here is to see where this project and Fisher leads Facebook to; will they be able to stand at par with Google or Yahoo or will this be just another wonderful strategy brought up by Facebook which didn’t make an impact when hit the floor. Time will tell what status updates will be done by Facebook for themselves.