Welcome!

Machine Learning Authors: Elizabeth White, Pat Romanski, Liz McMillan, Progress Blog, Kevin Jackson

News Feed Item

Richard Gorman Predicts the Future of Facebook Advertising in 2013

As Facebook Looks to the Future With Uncertainty, Direct Response Marketer Richard Gorman Shares Thoughts on How the Social Network Might Better Incorporate Advertisements

NEW YORK, NY -- (Marketwire) -- 01/10/13 -- Advertising is something that everyone is familiar with, according to Richard Gorman; whether an individual works in marketing or is simply a consumer, ads are everywhere, and they are critically important to the way business works. Ads are especially important for businesses that make their products and services free; without ad revenues, there is simply no way for these businesses to stay afloat. Facebook is a company that falls into this category. Signing up for a Facebook account has always been free, but, according to a recent article from Tech Crunch, the social networking giant is facing an uncertain future, as it considers ways in which it might better integrate ads into its service. The article has won the attention of online marketing pioneer Gorman, who has weighed in on the issue of Facebook ads with a new statement to the press.

"The Facebook business model puts the company in a difficult place," opines Gorman, in his new press statement. "The reality is that Facebook has existed for so long as a free service that the company now faces difficulties in figuring out how to monetize its services, and keep shareholders happy. Advertising revenue is the answer, but for a service that thrives on a seamless user experience, effectively integrating ads is tough."

As Tech Crunch notes, Facebook has found itself caught between a rock and a hard place. The social network thrives on people, who contribute content that is, in turn, public, private, or personal. Facebook can seek to monetize some of this content, but not necessarily all of it. At the same time, the company has shareholders to think about, and its services remain free, even as other, alternatives to Facebook grow increasingly common. "Facebook does not necessarily need to worry about users jumping ship for other social networks, because there is nothing truly comparable with Facebook at this point in time," offers Gorman. "With that said, they do need to ensure that their service loses none of its luster or its attractiveness to users, or else Facebook really could see its daily active user statistics begin to slip."

The Tech Crunch article says that Facebook's efforts to introduce ads are practically destined for failure, because they will almost certainly fall into one of two categories -- either these ads will rub users the wrong way, or they will be so unobtrusive as to be altogether ignored. "This is the conundrum that Facebook must deal with if it wishes to really get serious about ads," says Gorman. "Introducing ads may prove necessary to keep the shareholders happy, but it is equally necessary to keep the Facebook service appealing to users -- something that the introduction of ads could ultimately ruin."

Current models of Facebook advertising, Gorman says, leave something to be desired. "What many of us are seeing is the incorporation of 'sponsored' or 'suggested' posts into our Facebook news feeds," Gorman says. "The problem is that these ads are not necessarily related to our interests or our industries, and because Facebook is a place where we go to get content that is customized to our personalities and our desires, these irrelevant ads, embedded between posts from friends and family members, only serve to disrupt and distract."

The direct response marketing pioneer says that the answer may lie in Facebook taking a few pages out of the content marketing playbook. "For Facebook ads to be both effective for the advertisers and non-irritating to users, they are going to have to be more carefully targeted to the interests of users," he explains. "Additionally, they are going to need to take the form of enriching, engaging content -- as in, compelling articles, how-tos, or entertaining videos. Straightforward product promos are going to have a very limited effect in a Facebook newsfeed."

The only alternative to content marketing, Gorman concludes, is the introduction of a "premium" Facebook membership, wherein users can pay to have ads removed. "This model works alright for service like Spotify, but it is doubtful that it would work for Facebook," Gorman says. "It is the kind of move that could damage Facebook's brand, which has for so long been built on the notion that the service is totally free for everyone."

Richard Gorman tweets regularly about topics related to online marketing, @RichGorman101.

ABOUT:

Richard Gorman is a marketing innovator, a serial entrepreneur, and a major name in the direct response marketing field. His brand, Direct Response, is one of the leading named in affiliate marketing; through Direct Response, Gorman gives away millions of dollars in trade secrets and insider expertise, all as a part of his passion for delivering value to other companies and industry professionals.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@CloudExpo Stories
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a mu...
Trying to improve density, lower costs and run applications faster than before? Today, enterprises looking for a secure cloud strategy are increasingly turning to container-based Platform as a Service solutions for on-premises hosted DevOps. In her session at 21st Cloud Expo, Alise Cashman Spence, Offering Manager, Power Systems Cloud Solutions at IBM, will discuss the driving factors behind these cloud trends and how IBM customers are realizing exceptional performance, security and control for ...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
What You Need to Know You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technolog...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Keisoku Research Consultant Co. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Keisoku Research Consultant, Co. offers research and consulting in a wide range of civil engineering-related fields from information construction to preservation of cultural properties. For more information, vi...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...