Despite More Ad Space, Facebook Rates Hold Up

If you noticed it, Facebook increased the number of ad space in March of this year. In the pages, there were more ad spots on pages. The company also added promotions below photos which the users tag.


We have been following to see if the rates will drop as a result of more ad spaces. This morning, we can confirm that Facebook ads rates hold up despite the increased spots. We had thought that more slots will push prices down and hurt the company. Facebook is expected to make $4.05 billion in ad revenue this year, according to eMarketer, a market research company.This company is assuredly popular that the more spots did not annoy advertiser or drag them prices.


The bulk of this revenue is from the bidding ad  and the self-serve ads where customers put those static photos and few words and then bib based on prices to get better positions and appear on the pages of the 714 million Facebook users.


But notice something: you do not need to bid much. Just use the lowest possible amount on Facebook on the ad page. We have never seen any drop in impression based on the price we bid on Facebook ad.


Yet, we continue to point out that the primitive and static nature of Facebook is what could open it up for disruption from Google plus.


Also, Tekedia thinks that Facebook ad is primitive and that is where Google Plus could strike. The static images by the right hand side of user’s profiles do not add any major value. Few people care to see those images. If Google plus offers a more dynamic and less instructive ad network, advertisers will follow. It is about value and right now, Facebook ads do not add any value.

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