Cyberbaguioboy

Here’s an interesting analysis of the effectiveness of advertising on Facebook. (Yes, guys they have ads but you may be too busy playing Farmville to notice, heh).

While the article points to the increase in ad spend in Facebook, this social network is not really serving up relevant ads to people (again, have you really seen those ads in there?) The article argues that this might have something to do with the low inventory of ads, thus they can only rotate relevant ads to targeted audience.

So here’s my theory: Facebook either has a very low inventory of ads and that’s why they cycle through the limited number of available but irrelevant ads or the ad targeting model is fundamentally flawed. In either case, I seriously doubt that advertising on Facebook is any more effective  than other advertising options like paid search or contextual ads on traditional sites.

Okay, that’s something that Facebook has to figure out very soon.  In the meantime, here’s something to make your day. What if Facebook is played in real life?