The ad expansion onto other social media apps is a new attempt by Facebook to increase revenue
David Marcus, Facebook Vice President of Messaging Products, watches a display showing new features of Messenger during the keynote address at the F8 Facebook Developer Conference Tuesday, April 12, 2016, in San Francisco. Facebook says people who use its Messenger chat service will soon be able to order flowers, request news articles and talk with businesses by sending them direct text messages. At its annual conference for software developers, Zuckerberg said the company is releasing new tools that businesses can use to build "chat bots," or programs that talk to customers in conversational language. (AP Photo/Eric Risberg), photo: AP/Eric Risberg
26 of July 2017 17:58:03
NEW YORK – Scrolling through an ad-free Instagram is now a distant memory, much like the once ad-free Facebook itself. Soon, users of its Messenger app will begin to see advertisements, too — and WhatsApp may not be too far behind.Welcome to the Facebook ad creep.The world's biggest social media company has squeezed about as many ads onto its main platform as it can. The fancy term for this is "ad load," and Facebook warned investors back in 2016 that it has pretty much maxed it out. Put any more ads in front of users and they might start complaining — or worse, just leave.As such, Facebook, a free service that relies almost completely on ads to make money, has to keep finding new and creative ways to let businesses hawk their stuff on its properties.One solution is to spread ads beyond Facebook itself, onto the other popular messaging and photo-sharing apps it owns.So far, it's working. On Wednesday, Facebook posted a 71 percent increase in net income to $3.89 billion, or $1.32 per share, from $2.28 billion, or 78 cents a share, a year ago.Revenue for the three months that ended on June 30 rose 45 percent to $9.32 billion from $6.44 billion. The Menlo Park, California-based company's monthly active user base grew 17 percent to 2.01 billion.
This is about the only sign of any kind of slowdown in ad load at Facebook: year on year growth in ARPU dropped from 39% to 24% in past year pic.twitter.com/0WAdUH2YCP— Jan Dawson (@jandawson) 26 de julio de 2017
What else can Facebook do?"One, they will raise their rates on ads," said Matt Britton, CEO of social media marketing company CrowdTap. "Because they can. The value is tremendous for advertisers right now, including for video ads."For eMarketer analyst Debra Aho Williamson, Facebook video presents the biggest opportunity for ad-business growth. How people will respond to Messenger ads remains uncertain, she said. But with video, Facebook is doing what people already know, taking short and long-form programs and inserting ads in the middle.That lets Facebook attract money from "traditional video advertisers," she said — meaning the folks who honed their talents inserting ads into prime-time shows.
Why we don't sell ads: http://t.co/af5OVANT— WhatsApp Inc. (@WhatsApp) 18 de junio de 2012