Changing Face Of Facebook

Leaked documents obtained by Gigaom, reveal that Facebook will be upgrading its premium ads, to enable them to reach larger audiences and generate more revenue for the company that is now desirous of going public. Facebook quashes all Facebook followers’ fears that the ads will be more relevant and will look like normal Facebook posts.

The leakage has preempted and rendered somewhat meaningless, the major event that Facebook had planned on Wednesday to unveil its “Premium Ad” program. Behind the intention of giving advertising a more prominent place, the company’s prime purpose is of boosting revenue prior to offering its stock to the public for the first time.

Founder and CEO Marc Zuckerberg has for long prevented his social-networking site from becoming overfull with advertising. He has remained vigilant not to make advertising more intrusive and that it retained its societal flavor.

However, last year 85% of Facebook’s revenue came from ads. The immense potential could not be turned a blind eye to and finally the company’s resistance faltered. The leaked reports show that the company has decided to approach advertising with aggression and milk it for all its worth. Yoni Yadgaran an analyst says, “The sense we’re getting now is that Facebook is willing to sacrifice a little bit in order to ensure monetization.” Another analyst feels that Facebook making such drastic changes in its basic philosophy could indicate that its revenue growth has weakened.

This is how the new ads will work. The brand or product that is being advertised will create a page post. The post will be turned into an ad. If the person viewing the ad has friends who like the ad, than the ad will target them, showing their ‘friends’ likes. Facebook managers say, that “the main point of social networks is to get more personal and a brand getting personal with their fan base, even through ads, is a win-win for everybody.” Facebook expects its performance to increase by as much as 85%.

Facebook in its run up to becoming a public company has really adopted a forceful posture to monetize and increase revenue for their site before the crucial day dawns.