Facebook has decided that its advertising sales are weak enough that it could affect the price of its IPO. The social network controls close to a third of the display advertising inventory in the US. But, what advertisers are willing to pay for that inventory is low. Facebook does not produce content so that marketers can target message based on online reader activity.
On Wednesday, the company announced a new suite of advertising products intended to insert more ads into Facebook’s traditionally clean interface and to take more advantage of mobile ads, where the company has struggled. The announcement was made at its first marketing conference, held at the American Museum of Natural History in Manhattan.
Facebook is late into the market for mobile ads. So, the social network has introduced new tools to make it a more attractive venue for marketers. It “Premium on Facebook” program will allow advertisers to use video and other interactive messages. These can appear on the home pages of members. As many media have pointed out, this new set of products could alienate some Facebook users who expect their pages to be free of intrusive advertising messages.
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