So, pre-IPO, the question arises, just how are Facebook are going to earn their money and sustain their growth?
The indication below suggests that a much more social, but importantly ACTION-led suite of Facebook ads are now due to roll out. Ads which, at their heart are largely driven by the actions and inteactions of fans with your content. In this regard, this is nothing new, but the interesting considerations will be three-fold:
1) Interaction/engagement rates will climb, as will the costs – ads with social references have always out-performed standard ads (wonder of this is why Facebook dropped their average CPC rates recently). It’s easy to see how Facebook will earn more from the new version of the old!
2) How this will affect edgerank – the largely unknown aspect of edgerank has been the weighting criteria. What priority is Facebook giving to different media? The suggestion here is that Facebook are expecting ads (and therefore your content) to become much more interactive, multimedia-focussed. Your content plan (if it isn’t already) needs to reflect this.
3) Will Facebook soon start generating social ad content off your frictionless shared content? If it is already including you in ads based on your in-page gestures such as likes, comments and shares, it is more then feasible that we will see frictionlessly-shared content appearing in ads before long. The article you read, the track you listened to, might soon all become targetable in ad campaigns!
Exciting times, come what may!
Facebook Premium Ads Overview