Boston, MA 08/07/2014 (wallstreetpr) – While the small businesses might be pushing aside each other to form a place for ad space on Facebook Inc (NASDAQ:FB), the social network, in its conference call made it clear that it won’t be as easy as it may seem to be. During the earnings call, Facebook disclosed that the average price per advertisement jumped up 123% in the most recent quarter, considerably in contrast with the previous year’s same quarter. In the meanwhile, the ad impressions dropped 25% and the ad revenue increased 67% to sum up at $2.68 billion.
Better Outcomes at Costlier Rates
While the chief financial officer of Facebook Inc (NASDAQ:FB), Dave Wehner says that their social media offers better outcomes and the prices of advertisements co-relates to their value; small entrepreneurs are not seeing things in the same direction. Dave Wehner says that Facebook is continuously focusing on creating betterment and improvisations for the ad units so that they become more targeted and relevant for Facebook users and marketers.
Reaction of the Small Entrepreneurs
But, on the exact contrary, small businessmen/women believe that while price increase is good news for the top line of the company, it is something that buries a small entrepreneur who already has a restrictive budget for advertising. In this context, Nathan Latka, the CEO of Heyo.com explains that even though the value of ads on Facebook Inc (NASDAQ:FB) might show improvement for some, but seeing a bigger picture, it is evident that small businesses are largely disadvantaged because of lack of finances.
Statement from Facebook
The spokeswoman of Facebook Inc (NASDAQ:FB) explained that the aim of company was to make ad systems easier for use so as to allow even the small businesses to make use of such tools. She added that Facebook strived to make the ads cost effective for the businesses.
In April, when the company announced change, it said that users will be able to see less number of ads, but the advertisers will see increase in the price at auction.
