Monday, August 11, 2008

Facebook's ad model in need of help

Judging by their latest initiative

This allows users to rate ads with a thumbs up/thumbs down - it also asks them questions as to why they liked/disliked the ads.

Problem is - as TC point out - generally (and I mean generally) click through is a good indicator of this.

Another problem is - ads on social networks generally receive around .01-.03% CTR ... which begs the question ... if users on these platforms aren't interested in clicking on the ads ... why would they be interested in submitting feedback on them. A feedback mechanism implies users are taking notice of the ads, which generally they are not.

Another problem - the system will (for those with the time to add ad feedback) will be skewed towards negative sentiment ... not lukewarm/neutral responses - which are also a problem for the site (as neutral ads generate a low CTR, low yield etc).

Seems there's increasing heat for FB to justify it's massive valuation with inroads into the ad market ... but the more they try and the more they're getting it wrong.

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