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Is Facebook’s Attention Turning Towards Sponsored Stories?

There has certainly been scrutiny of Facebook ever since the social media giant went public. A further look at Facebook comes as they recently released second quarter earnings.

According to ClickZ, Facebook “reported $992 million in ad revenue in Q2 – 84 percent of total revenue and a boost of 28 percent since Q2 2011.”

Although the growth rate was impressive, the $1.18 billion in revenue generation doesn’t come close to the $60 billion valuation the company currently experiences.

Like many online businesses have realized, the prospect of digital success relies on a strong mobile strategy, especially for a major social networking company. The current mobile advertising presence Facebook has isn’t quite to the extent that many have expected. Now, however, it seems that Facebook execs have plans for more success with mobile.

This focus is on Sponsored Stories, which Mark Zuckerberg believes are “a clear path to building a strong business on mobile.” Sponsored Stories appear in Facebook users’ news feed, where a lot of time is spent due to updated content.

Sponsored Stories as a form of advertising, according to Facebook, result in strong click-through results and “higher ad prices than other formats.”

It’s clear that Facebook wants to put more emphasis on the usage of Sponsored Stories. The placement of these advertisements is likely one of the main reasons. And the fact that many other forms of Facebook advertisements – like the new real-time ad exchange – do not currently have mobile options.

Have you invested in Sponsored Stories, which reportedly generate $1 million in revenue each day for Facebook? Please share your experiences with Sponsored Stories with the Mequoda community.

Posted in Audience Development Strategy

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