Last Updated on by Karl
Facebook has an opportunity to get a lot more advertising revenue by displaying ads on other websites like Google AdSense.
Facebook knows who are visiting sites that use like buttons, Facebook Pixels, Facebook Connect or other social plugins.
These tools give them an opportunity to target ads at specific audiences. Facebook ad targeting is a little different from what Google does with its AdSense program.
Google's strength lies in the ability to match ads to the site content. However, it misses a lot in that field, and it's not rare to see ads unrelated to the site's content. In some cases 2 out of 3 are wrong, and the remaining one is „almost but not quite.“ The misses come from the fact that they try automatically calculate the relevance of the site to the ads and this leads to matching „laser printers“ with „laser eye surgery.“
On the other hand, Facebook knows a lot about you. And it will not make a mistake of identifying you if you are logged on. Crunching the gazillions of terabytes from its endless social databases, Facebook extracts our values, attitudes, and lifestyles. Personal data is much more powerful targeting option than Google's matching sites to ads and hoping that people visiting the site are interested in the ads.
In my opinion, matching ads to people will get better results than matching ads to websites.
So, how would this system work? From the publisher's point of view, it would be similar to Google AdSense. You put the code that displays the ads on your site, sit back and relax, waiting for the money to start pouring in.
The magic will be on the Facebook's side. Some of the information Facebook has that they can use to target ads at you:
- What sites do you visit
- What information do you have on your profile
- What information make you share, like and comment
- Who are your friends
- All the above about your friends
For example Facebook knows when your friend just bought a new smartphone and how old your current phone is. Using that it can start displaying smartphone ads for you on the sites that you visit.
Similarly to Google advertising, Facebook should police the ads click through rates and other metrics so that marketers could not spam their audiences with the badly targeted material.
Facebook can give advertisers unbelievably powerful tools by making its aggregate social data available for ad targeting. The advertiser can create ads by targeting people who:
- have visited snowboard related sites in the last two weeks
- they have snowboarding mentioned in their profile
- they have interacted with snowboard related status updates/images/pages in the last X days
You could create different ads for men and women, young and old, people with lots of connections and those of only a few. Some of these options are already available when advertising on Facebook but using that information to advertise on other sites will add a lot of value.
But this is just the beginning. With all that information available new possibilities are going to emerge. And in the end, people will get ads that match their interests.
By giving feedback on demographic data to advertisers and publishers, Facebook can help to increase the relevance of the ads. Relevance will make the program more attractive to publishers and advertisers alike. In the end, it'll reduce the noise level of irrelevant advertising messages that you see on the websites.
Facebook is a platform. The ability to tap in and use Facebook's aggregate data should be made available to developers who can then build real business applications to Facebook.
- and much more
Google gets about 18 percent of its ad revenue from AdSense. In third quarter 2017 Google made 4.342 billion dollars from AdSense (12.6 billion in nine months ended September 30). Full year 2017 revenue will probably be around 17 to 18 billion dollars for Google Adsense. https://abc.xyz/investor/index.html
Paid clicks for our Google Network Members' properties include clicks by end-users related to advertisements served on Google Network Members' properties participating in AdSense for Search, AdSense for Content, and AdMob. In some cases, such as programmatic and reservation based advertising buying, we primarily charge advertisers by impression; while growing, this represents a small part of our revenue base.
So, what do you think will there be something like AdSense for Facebook and would you use it a an advertiser or a publisher? Let us know in the comments.