Facebook Inc (NASDAQ:FB) is not playing by the book
There is no other way to put it, Facebook Inc (NASDAQ:FB) is very aware about the fact that its future will be positioned largely on its ability to keep more high-quality advertisers linked with the site. FB’s revenue model has always been scrutinized very closely and every effort it takes in boosting its advertising profits will prove to be beneficial in easing the undercurrents. Very recently, BBC news published a pretty interesting story in which it discussed the turbulence that FB has been going through lately. The company has been removing some advertisements from various controversial pages in order to avoid being boycotted.
What is the contention?
It seems that certain advertisers are unhappy with their advertisements appearing in some groups that don’t gel with their specific beliefs. BBC had reported that companies such as BSkyB and Marks and Spencer were amongst those that suspended advertising, post complaints that ads had been placed on some pages that held offensive material.
From Facebook’s point of vie, this will add to its workload, however, it’s not something that the social networking site can turn a deaf ear or a blind eye to. The absolute last thing that FB needs is to antagonize advertisers, as this has the potential to impact its bottom line negatively. Going forward, Facebook will discontinue placing ads on pages that have any kind of sexual or violent content, irrespective of whether the content breaks its service terms or not.
The criticality of online advertising
There is not a shade of doubt about the fact that online advertising will account for an increasing proportion of overall advertising-expenditure. In addition to this, marketing as a whole is heading towards adopting practices that are being developed and deployed online. An improvement in technology also means an impact on online advertising and measuring this impact will be simpler as well. Over the next 5 years, consumer marketers and advertising agencies will definitely be compelled to revisit their advertising strategies. With this in mind, companies like Facebook Inc (NASDAQ:FB) will have to cater to that changing weather and be accommodating to their sensitivities and mold their business to match their sensibilities.