Boston, MA, 11/21/2013 (wallstreetpr) – Facebook Inc (NASDAQ:FB) is taking the unusual step on freezing its ad load till the year end. With the festival season around the corner, everyone was expecting Facebook to increase its ad load. This step is in the right direction
- Facebook is facing a decline in monthly active users.
- There are signs that it is no longer able to attract the cream of audiences for any social media sites – the youngsters.
- Smartphones and tablets have ensured that the space for advertising has reduced.
The best way to increase revenues would have been to increase the number of ads on each page. Facebook Inc (NASDAQ:FB) is not facing any issue in finding buyers for its ad space. It is not able to increase rates, but this phenomenon is being faced across the industry on account of the uncertain macroeconomic situation.
The top management seems to have taken a correct decision by freezing ad content and also in delaying launch of new ad features like videos.
Smartphones and tablets have a smaller screen size. More ads would leave the page very cluttered. Secondly, such pages would slow down the speed of smartphones. This could have ended up in disenchanting the users. Once this happens, the users leave in droves, taking with them their family, friends and even acquaintances. Targeted advertising, the benefit of such social media platforms, has an ugly downside also.
Several new launches like targeted video advertising have also been put on hold, till Facebook Inc (NASDAQ:FB) is able to stabilize and improve its user base.
Facebook is concentrating on the other side of the fence. It is strengthening its advertising department and making it more industry specific. By concentrating on market segments, Facebook Inc (NASDAQ:FB) would be able to realize far better ad rates. It is in the process of recruiting new personnel and has just announced that Michelle Morris will be looking after the automotive segment. Michelle was earlier looking after the same division at Google Inc (NASDAQ:GOOG).
