Saturday, December 27, 2008

Facebook's creative works.

Facebook one of the fastest rising dot com company in the web history. With its massive user base an estimated 140 million active users (comScore). It’s the largest social networking site in the web. Facebook is also the six most trafficked sites in the US (comScore), it’s got an eye popping page views of 65 billion page views per month. But despite of those monstrous figures Facebook still got problem on monetization side. It’s still struggling to earn money. User base is crucial to online business Facebook got a massive user base which put it in a better position to make money. Advertising is Facebook’s golden goose and online advertising depends on user base, more users mean more revenue. The Company still struggling when it’s come in selling ads. It’s already done so many CPC campaigns. Over the past weeks the Company has been working on some “ads experiment”. Facebook is trying to transform advertising from nuisance to something people actually could use. Facebook is struggling to reach users. Last year Facebook generated only $ 145 million in revenue according to third party marketing analyst firm eMarketer, and much of its ads deal have done with Microsoft. By contrast its rival MySpace pocketed $ 540 million in revenue last year, that’s a huge gap. The Company has been experimenting and testing various ways on how to monetize those eyeballs, mainly by selling advertising. It’s done a lot of efforts to increase its traffic and applications engagement. Most of Facebook’s traffic is happening outside the US. The Company main focus is on user experience side. The recent redesigned is done to enhance user experience. But it hurt the users, Facebook users are complaining about the design, they find it too difficult to navigate. Facebook’s design have caused uproar in applications’ status and distribution, it’s also experienced a drop on its traffic. But Facebook has now starts to recover from the drop on traffic, its now back on works, focusing around news feeds and profile feeds to help promote user activity. This is all about information sharing about advertiser on the site. At Facebook, an advertiser can set up a “Page” about a product then users can become a fan. Facebook is betting hard on focused actions like joining on “Advertiser Page”. But we got problem here, privacy should be a top concerns here. What users worries that a new types of news feeds, placements, and Advertiser Pages do begin to dilute The Facebook news feeds.

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