Facebook Halts its Ad Network Before it Ever Gets Off the Ground (For Now)

Eric Chapman Developer, Digital Denizens Design & Marketing

Posted on December 24th 2012

Facebook Halts its Ad Network Before it Ever Gets Off the Ground (For Now)

Picture of a guy saying stop!Facebook’s highly anticipated ad network has been put on the backburner, for now anyway.  The ad network, when (and if) it does get off the ground, is said to be much like that of Google’s Adsense network, and would likely generate substantial income for users.

Facebook launched a test earlier in the year that placed its own ads on the mobile apps of other developers.  According to sources, discussions that had been ongoing between Facebook and publishers regarding running ads on publishers’ mobile websites have been put on hold as well.  Ultimately, it looks like the ad network, which many marketers have been patiently waiting for, won’t be launched anytime soon.

Brandon McCormick, Facebook spokesman, said via email that “We are pausing our mobile ads test off of Facebook.”  McCormick went on to say that feedback and results had been positive, their primary focus is on scaling ads in mobile news feed.  He said that the testing had allowed them to learn a lot, and that test results will be useful to Facebook in the future.

The concern seems to be that Facebook isn’t prepared to deliver ads on external websites which are significantly valuable for either the ad network or its partner.  Considering that the ads on the Facebook site continue to command rates that are relatively low, this is thought to be one part of the equation, and a stumbling block between Facebook and potential partners.

Google and other networks have propelled their ad programs off the ground in the past by guaranteeing a certain amount of revenue to publishers regardless of how their ads perform.  However, this is a step Facebook has yet to take.  According to one publisher who has been in discussions with Facebook about running the company’s ads, Facebook has discussed the possibility of what they describe as a “generous” revenue split.

It’s been assumed for years that Facebook would someday launch an ad network similar to Google’s Adsense network, and someday they probably will – but that day isn’t today, and doesn’t seem to be on the horizon, either.  However, don’t give up hope; Facebook is currently involved in deep discussions to acquire the Atlas ad tech platform, a Microsoft product.

by Eric Samuel Chapman. He is an internet marketing & interactive advertising specialist from Howell, Michigan. 

Eric Chapman

Developer, Digital Denizens Design & Marketing

Eric Chapman is an accomplished marketing and information technology professional with over 15 years of experience. Eric began with a degree in computer networking, with a concentration in business systems and was quickly certified by Microsoft as a Microsoft Certified Technology Specialist. Fresh out of college, the horrible events of the attack on the World Trade Centers occurred and technology jobs were suddenly difficult to come by. Eric had worked in sales and marketing in previous jobs, so turned his efforts there. It isn’t by mistake that merging technology with marketing came natural to Eric. He quickly became certified, with honors, by the Inbound Marketing University and completed an e-Marketing certificate at a local college. He is also certified by social media dashboard giant HootSuite.com. Marketing and Sales is something that definitely comes naturally to Mr. Chapman. He loves to tell a story about how he sold a tube of dog urine for hundreds of dollars to the federal government. Yes, that is a true story ladies and gentlemen. Eric is also an independent student of linguistics. Regarding this, he says, “Have you ever seen that painting from René Magritte that states “This is Not a Pipe”? That type of thinking gets me so excited. Semantics and semiotics are the foundation of our understanding and communication. Because of this, they are very relevant to marketing.” Are you looking for a marketer who truly thinks outside of the box? If you’re a small business owner, who despite being passionate about your business, just feels stuck at the moment, then Eric is your turn-to guy. He’s adopted the tagline “The swiss army knife of small business marketing” and nothing could be more accurate. No matter the problem, Eric seems to have a solution. For this the world of small business is very fortunate to have a gifted marketing professional like Eric Chapman.

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Kent Ong
Posted on December 27th 2012 at 12:49PM

I am not sure if people do click on Facebook ads. According to eConsultancy, 80% of people don't click on it.

Posted on December 27th 2012 at 1:43PM

I see numbers like that too, but I personally get great results using Facebook ads. There was also a study done that showed even if people aren't clicking on ads, they are going to retail locations after seeing the ads, so they work well in a branding sense also. I know it's easy to be skeptical; Facebook really isn't a place to conduct business. The great part though, is because of the amount of personal information available, you can really target your ads and still grab attention. Thanks for the input Kent!