Facebook Premium Ads: Are They Worth The Investment?

The premium advertising platform Facebook launched last week, which includes an increased emphasis on mobile, is getting mixed reviews from industry professionals.

"Bottom-line- this is gonna fail because People don't want to recommend an ad," said Natalie L. Petouhoff, a former senior analyst at Forrester Research. "They want to recommend a product, service or company that they have had an amazing experience with. (Or they want to share great content.) That expression of joy, surprise, wonderment... is a natural thing that people share with each other."

Facebook's revamped advertising program took second seat last week to news that the company was overhauling its brand pages by adding Timeline. Both initiatives are aimed at addressing concerns from potential investors about Facebook's revenue model as it nears its initial public offering, but the premium ad model is likely to have a bigger impact on users, according to a dozen advertising industry executives interview over the weekend by ReadWriteWeb.

One of the biggest problems, Petouhoff said, is that there's no incentive for users to share an ad: something that is fundamental to the rest of the Facebook experience. While the new program is a step up from previous attempts by Facebook to bolster revenues and returns for advertisers, the program may still fall short.

"Nice try Facebook, but its still not there," Petouhoff said. Read More

Posted on March 6, 2012 and filed under Best Practices.