Does Facebook Have a Winning Advertising Strategy At Hand?
Facebook (NASDAQ:FB) has a problem with advertising, and the company has tried every method possible to use as a remedy, from launching sponsored posts to creating an updated — read more advertising-friendly — layout to purchasing Microsoft’s (NASDAQ:MSFT) ad-service business Atlas.
Approximately 84 percent of the company’s revenue is derived from its advertising business, and so new schemes are consistently tested and rolled out to make its strategy more effective. The social network’s latest attempt to refine its ad business, announced Tuesday, enables marketers to tailor advertisements based on users’ browsing history.
This system — called Facebook Exchange — has already been used to place graphical display advertisements in the sponsored ad box on the right-hand side of a Facebook user’s page. Now, as Reuters reported, the company will incorporate the targeted ads into Facebook’s NewsFeed, tying “together two of the most significant innovations that Facebook Inc has made in the past year to its advertising business.”