Facebook steps up monetization with ads in marketplace
Facebook has found another place to sell advertising space, and it could be a hugely lucrative move. The company has its own “craigslist-style” selling area, Marketplace, which has the potential to host targeted ads within a sales-focused platform. For now, the ads are just being tested, and only a sliver of Facebook’s U.S. users will see them. It will “borrow” adverts from its existing Newsfeed selection rather than solicit new adverts but if they prove popular, you can expect that to change quickly.
Facebook’s share price has risen by 39% so far this year
SOURCE: Yahoo Finance
According to Michelle Bonner Techel, product marketing manager at Facebook, the company is taking baby steps: “We are starting a small test that shows ads to a small percentage of people using Marketplace in the U.S. and will evaluate the response before determining how we move forward.”
For users, the difference between Newsfeed ads and Marketplace ads will be basically nonexistent. But from the company’s perspective they are different at a fundamental level: when you look at your Newsfeed, you’re not looking to buy products; when you visit Marketplace, you are.
Facebook already makes almost all of its revenue from advertising – adding ads to Marketplace could push that business model to new heights.
Dominion holds Facebook in its Global Trends Ecommerce Funds.
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