There is one product that Facebook has that is impending its growth. Its ads are very primitive. The static ads by the RHD of the profiles are easily ignored with no consequence. It is a product that Google+ could attack and take advertisers away from Facebook. Tekedia thinks that if Facebook does not get this right, it will lose the revenue game.
Take a case in point. Last week, we ran some ads in Facebook. We got good impressions. People saw them of course, but the click rate was poor. If we had focused on showing our brand without expecting people to click towards buying decisions, it would not have mattered.
In our ad that ran last week, hundreds of thousands of people saw the different five versions we had. But just few hundreds clicked. We think that Facebook click rate is poor, simply because the ads are easily ignored. For Facebook, it is good for them as they have vowed not to disturb the user experience. Unfortunately, someone has to pay to keep Facebook in business and that is where the ad system comes into play.
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Over years, we have run many ads. We have always focused on brand introduction, not necessarily getting people to visit the site. But that is changing and Facebook does not offer a good platform for us to execute.
If Google+ has a very compelling product that can get people inside the network and still allow for solid ad system, Facebook could see a shift. They made $2 billion last year on ads with this static ad. If Google+ could add some flash or dynamism, we will choose them over Facebook. We make this comment from the perspective of an ad buyer and that is what matters to us. Users may think otherwise.