Friday, September 2, 2011

Featured Post of Month (May)

Facebook's Next Economic Move?
by Lizzie S.

Facebook will begin paying users 10 cents if they will watch certain ads. Users will be paid in “Facebook Credits” which will yield about 10 cents per ad. The Facebook credits can be redeemed to purchase goods on Facebook Deals. Facebook Deals is a program similar to Groupon. It is hard to determine whether or not this will be enough of an initiative to motivate users to view ads. Watching an ad can take a long time and 10 cents is not very much money. Although these ads are time consuming Dan Greenberg, CEO of Sharethrough, (the company making these ads), claims that the ads will be more than entertaining. So maybe the entertainment factor will be more of an incentive for users to be motivated to watch these ads. If the popularity of these ads increase the products being advertised will also increase in demand. This is a smart move made by Facebook because they will recieve a lot of revenue from the ad company because the ad company must pay Facebook in order for them to show their ads. It is too early to determine how smart of a move it was for the Sharethrough to pay Facebook to show their ads. The success of their ads will be determined based on whether the entertainment supplied by these ads and 10 cent yield will be enough of an initiative for Facebook users to want to watch the ads. If this new innovative ad idea has a successful outcome, (sucessful, meaning many people watch the ads) than it will be extremely beneficial for the company. If ads offer a good enough initiative for people than the products being advertised will increase in demand dramatically. Since Facebook is such a highly populated website, when the popularity of the ad increases the demand for the product advertised will be extremely widespread.