Monthly Archives: March 2013
NEW YORK (CNNMoney) — Facebook on Thursday unveiled a News Feed revamp that will make content more personalized and engaging. But the reason behind the redesign — advertising — barely got a mention.
Facebook depends heavily on promoted posts in its News Feed for ad revenue. If you “like” a brand’s page on Facebook, your friends might start seeing ads for that brand with your name or face next to them.
Yet the old News Feed format didn’t give much real estate to brand advertisers, and if you’re not “liking” pages and activities, Facebook is making less money off you. It’s in Facebook’s best interest to keep its users returning to the site, and actively engaging with its content and ads.
“What drives engagement drives monetization,” says Ken Sena, an analyst at Evercore Partners. “For Facebook, the News Feed is its product — and its way to monetize…
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