The start and end of the "NEW Facebook Ads"

[DirSP]

Just read Facebook Sure Does Have Trouble Keeping Execs and figured out why Facebook relaxed the ad approving ads and then tightened it again a month later.

Back on January 29th, the Facebook rules on ads had been relaxed, but on March 5th, Facebook had tightened the rules again. This period of time had earned me some nice profit and also for many others. Many people still believe that Facebook will open its door once again when they need new fund. Unfortunately this is not going to happen, because the business director and the CFO of "this mess involving the FTC" have both been fired.

Back in late 2008, Facebook was desperately trying to secure new investment before the credit crunch gets worse and no one knows how long this recession will last so they wanted to be prepare for the future. Gideon Yu, then CFO, went to Dubai and tried to secure some new investments, but came home empty handed. Now in 2009, news of bank losses was piling up so Facebook needed to come up with something fast. Gideon Yu probably went to Net Jacobsson, the director of business development, asked if they could increase revenue in anyway. Net Jacobsson probably proposed to him that they could relax the rules on Facebook ads and revenue would increase. Net Jacobsson got the go ahead and announced the news. Affiliate marketers then started bombarding Facebook with shady ads and cash started rolling in (The initial projections of Facebook's 2009 revenue were $230 million, but that have been revised to $400 million in mid March. I wonder why?). Of course, consumer complaints were also starting to pile up, and FTC got fed up with all the complaints and contacted Facebook. Mark Zuckerberg went rampage over this and stopped all shady ads on March 4th. Afterward, Net Jacobsson was fired on March 9th for making the decision to relax the rules, and Gideon Yu for unable to bring in new investment and revenue.

 

[ricdes]

I've been saying it. Facebook has no way to power themselves if they dont start putting focus on brand advertising and affiliates. There's just no way on how a simple local advertiser x 100 could support facebook promoting its cookies imho.

 

[gopher]

You are pretty gullible if you believe Facebook's decision had anything to do with the FTC.

 

[DirSP]

You are pretty gullible if you believe Facebook's decision had anything to do with the FTC.

Must be a coincidence that the guy in charge of business development got fired, and Facebook went back to the old rules after the FTC grant conference (March 3nd).

 

[coolguy20]

There is still tons of revenue potential in Facebook without them relaxing their Ad Standards. To be honest a lot of it is going to come down to them deciding on set standards for their ads then abiding by them. Just as much compliant material gets rejected as non-compliant.

Tons of stuff they can do to just the framework itself including day parting, more transparent quality score, ad format, click fraud protection, and such to increase revenue before being forced to modify guidelines.

 

[gopher]

Must be a coincidence that the guy in charge of business development got fired, and Facebook went back to the old rules after the FTC grant conference (March 3nd).

Yes.

Seen anyone else ban grants? The only reason Facebook got rid of them is because of user complaints. They couldn't care less about the FTC. They just used the good publicity, and the FTC was at least able to present someone.

 

[vinny lingo]

I've been saying it. Facebook has no way to power themselves if they dont start putting focus on brand advertising and affiliates. There's just no way on how a simple local advertiser x 100 could support facebook promoting its cookies imho.

That's pretty ignorant. It's more like "simple local advertiser" x 21,000,000. $0.15 clicks aren't exactly outside the budget of most of that 21 million. The net effect of switching their focus to local advertisers is positive for both Facebook and the advertisers. FB's users are happier not having it polluted by grant ads and other "scammy" rebill offers. Locals get paying customers through the door for an infinitely smaller price with the never before seen ability to track every fucking penny (this last statement, of course, applies to all PPC advertising).

 

[cdc]

That's pretty ignorant. It's more like "simple local advertiser" x 21,000,000. $0.15 clicks aren't exactly outside the budget of most of that 21 million. The net effect of switching their focus to local advertisers is positive for both Facebook and the advertisers. FB's users are happier not having it polluted by grant ads and other "scammy" rebill offers. Locals get paying customers through the door for an infinitely smaller price with the never before seen ability to track every fucking penny (this last statement, of course, applies to all PPC advertising).

But 99% of those 21 million local advertisers don't know the first thing about facebook, ppc, writing ads, optimizing landing pages, etc.

Everyday more and more of them are smartening up and outsourcing this, but I don't think FB can wait until enough of them start doing it to get them profitable.

 

[miketpowell]

Face book could earn a butt load more money if they just gave advertisers tools to target ads its pretty fucking simple. They have a "reports" section but it's a completely joke. Give us live data about the people clicking our ads such as keywords in there profile ect that can work with our tracking systems and they will be able to start getting way more per impression.

The better the ads are targeted the more money you can make on an ad and thus when people start competing for that money FB makes more money. Instead they rather waste time jacking off with there user interface instead of getting a respectable ad platform for a "billion" dollar company.

 

[ayzo]

That's pretty ignorant. It's more like "simple local advertiser" x 21,000,000. $0.15 clicks aren't exactly outside the budget of most of that 21 million. The net effect of switching their focus to local advertisers is positive for both Facebook and the advertisers. FB's users are happier not having it polluted by grant ads and other "scammy" rebill offers. Locals get paying customers through the door for an infinitely smaller price with the never before seen ability to track every fucking penny (this last statement, of course, applies to all PPC advertising).

Facebook, myspace, youtube, it's all dominated by the same demographic. Broke students and child molesters, neither of which have the need for most local services like dentists, lawyers, plumbers, electricians, wedding planners etc. Really the only local businesses who could take advantage of facebook are clubs, bars, garage bands, and maybe a local coffee shop or restaurant, assuming they have a dollar menu.

 

[Jordan]

Facebook, myspace, youtube, it's all dominated by the same demographic. Broke students and child molesters, neither of which have the need for most local services like dentists, lawyers, plumbers, electricians, wedding planners etc. Really the only local businesses who could take advantage of facebook are clubs, bars, garage bands, and maybe a local coffee shop or restaurant, assuming they have a dollar menu.

Over 50% of Facebook users are over the age of 25.

 

[cliqz]

Facebook, myspace, youtube, it's all dominated by the same demographic. Broke students and child molesters, neither of which have the need for most local services like dentists, lawyers, plumbers, electricians, wedding planners etc. Really the only local businesses who could take advantage of facebook are clubs, bars, garage bands, and maybe a local coffee shop or restaurant, assuming they have a dollar menu.

Yeah that's not true anymore. Most of the people I know in the multiple professions I come into contact with earning professional salaries are on facebook to communicate with colleagues. Ironically it's more of an effective tool for thta than linkedin who's core business is to provide that service.

Also, because they make most people use their real name on there it's a great way to find old classmates and acquantances. In short it does what classmates.com, reunion.com, myspace.com, and linkedin do all in one and it does it better.

 

[WayneDog]

That's pretty ignorant. It's more like "simple local advertiser" x 21,000,000. $0.15 clicks aren't exactly outside the budget of most of that 21 million. The net effect of switching their focus to local advertisers is positive for both Facebook and the advertisers. FB's users are happier not having it polluted by grant ads and other "scammy" rebill offers. Locals get paying customers through the door for an infinitely smaller price with the never before seen ability to track every fucking penny (this last statement, of course, applies to all PPC advertising).

It's ignorant to think that these "simple local advertisers" could ever figure out how to master facebook well enough to get consistent .15 clicks. Then turning them into paying customers on top of it, for 98% of them it's never gonna come close to happening.

 

[Rasher]

It's ignorant to think that these "simple local advertisers" could ever figure out how to master facebook well enough to get consistent .15 clicks. Then turning them into paying customers on top of it, for 98% of them it's never gonna come close to happening.

Agreed - Facebooks traffic isn't really geared for local online to offline marketing. Facebook just really needs to reopen Beacon (and not tell any of its users this time) and THEN they become use full to the offline market. Personally if I was Facebook, I'd hire a team of aff marketers to specifically work within their guidelines with their traffic and pay them with incentives.

 

[mediasup]

Brand and affiliates drive 99% of revenue for advertising why do think facebook was at asw they have no revenue without us what local advertiser do u know spend or have a 20k spending budget just on facebook a day most local or small mom and pops spend 100 dollars a day facebook won't be profitable unless google buys them or they figure that out mark zuck isn't worth a dime until then it's a paper worthless

 

[vinny lingo]

It's ignorant to think that these "simple local advertisers" could ever figure out how to master Facebook well enough to get consistent .15 clicks. Then turning them into paying customers on top of it, for 98% of them it's never gonna come close to happening.

Well... you figured it out. So there's some hope out there for these business owners. :jester:

Maybe they won't get consistent $0.15 clicks. But what they can get just by spending a bit of time working at it blows the alternatives away.

But whatever.