Ajay Tejwani

Category: Social Media

Facebook Tests Using Specific User Data on Mobile Ad Networks

Since Facebook went public on the stock market, the question on everyone’s mind has been how can they increase revenue without hurting the user experience? The answer may be here. Facebook has begun testing its mobile ad network. (The picture was borrowed from Mashable.) Facebook claims they want to make ads more relevant for users.

 

In the online article “Facebook Beta Launches New Mobile Ad Network Using your Data To Target You With Banner Ads In Other Ads” Josh Constine highlights the changes with the following quote: Starting later today, you may start seeing banner and interstitial ads targeted by your Facebook biographical and social data within non-Facebook mobile iOS and Android apps plus mobile websites where you’ve authenticated with Facebook.

The targetable data includes your age, gender, location, Likes, friends who’ve used an advertiser’s app and basically any other targeting options in Facebook’s standard ads marketplace. Unlike other sites, Facebook has a huge network of users and very accurate information that they can now market. That is one powerful tool!

They are currently testing the power of the new ads and their performance. For the information described above, advertisers can dish out cash based on bids that they are willing to pay to reach certain demographics. Josh Constine always pointed out “Facebook launched its first non-social, in-feed ad unit last month, allowing mobile developers to pay to show download links for their apps within the Facebook for iOS or Android news feed.” However, if they reduce the quality of user’s feeds with ads, they could end up hurting their business tremendously.

So they have to be cautious how they use their information so that they make money while improving user’s experiences, instead of hurting their experiences.

They also have to be extremely careful and make sure that user’s don’t feel like their privacy is being infringed upon because that could lead to lower usage. Facebook said user’s privacy was “top of mind” when creating this new design. If all the facets of the article are balanced correctly, these new changes may be the solution to not maintaining the quality of user’s news feeds and make it so they don’t have to push their own apps down on users, while also increasing revenue a lot AKA increasing the worth of Facebook (something they’ve been trying to figure out how to tactfully do for a while now.) How do you think this will impact Facebook?

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