Banner ads on Facebook is a dumb way to monetize. Same on MySpace. People don't pay attention to banner ads on social networks because they are too busy paying attention to EACH OTHER. It's no surprise that people are complaining about low click through rates on Facebook display ads. But that doesn't mean that Facebook won't figure out how to monetize its growing userbase.
it's clear that Facebook and other social networks are in need of the aha moment that happened at Google when someone realized -- hey, if we rank the ads based on RELEVANCE as well as price bid, then people would be more likely to actually CLICK on the ad, and we'd make more money.
Banner ads on Facebook is a dumb way to monetize. Same on MySpace. People don't pay attention to banner ads on social networks because they are too busy paying attention to EACH OTHER. It's no surprise that people are complaining about low click through rates on Facebook display ads. But that doesn't mean that Facebook won't figure out how to monetize its growing userbase.
it's clear that Facebook and other social networks are in need of the aha moment that happened at Google when someone realized -- hey, if we rank the ads based on RELEVANCE as well as price bid, then people would be more likely to actually CLICK on the ad, and we'd make more money.
(from: http://www.dmwmedia.com/news/2007/07/13/facebook-monetizatio...)