Facebook announced that starting in January, the social network would be cutting back on the promotional ads that appear within the News Feed that users have grown very tired of. While investors are less than happy with that concept, Facebook has taken a harsh stance pointing out that if individuals want to post an ad on the site, they will have to buy a space, like anyone else.
In an official statement via Facebook the social network called it the removal of “overly promotional posts” after listening to many users constant feedback. Recently, the company began asking users what types of posts appealed to them, in an effort to bring the content that is important to users to the forefront, and to better arrange ads, so they feel less like ads. That means, for users who are used to seeing ads for a particular retailer after they’ve liked the page, the number of ads with events and things like that will be less than were previously.
These are what the company considers unpaid ads, and this is what Facebook is targeting with this move. “It’s a clear message to brands: If you want to sound like an advertiser, buy an ad,” said a digital advertising analyst at the Altimeter Group. While this will be an unappealing move to investors and businesses that typically reach customers through that method – this is something that will likely have great benefits and rewards to the Facebook user-base.
Facebook has been spending the last two years working to ensure that the News Feed is more efficient than it has been in the past. A lot of this too though was driven through user feedback, the company urged.
The company isn’t hurting for money though. Facebook reported a 64% increase in ad related revenue in the third quarter of 2014, which was ahead of the forecasted expectation. Prices have risen, revenue has risen, and at the end of the day – Facebook is in a better place when it comes to advertising, than they were several years ago. That means the social network can begin making decisions with their ads that actually appeal to their users, as well. Especially since privacy has been such a major concern for the company within their user base as well.