Facebook: Not an ad platform but an ecosystem

As a display channel, Facebook combines the potential for strong targeting with high traffic. However, this paper argues that, in assessing the value of Facebook to advertisers, it is not enough to focus narrowly on the impact of Facebook display.

Facebook: Not an ad platform but an ecosystem

Now that Facebook is a publicly traded company with shareholders to satisfy, the ongoing question of whether it will ever live up to its promise as an advertising platform becomes more urgent.

While display advertising does account for approximately 80 percent of Facebook revenue, and advertisers continue to add Facebook to their online media plans, marketers and commentators are divided on its efficacy. For example, in the run-up to the Facebook IPO, General Motors announced that they were discontinuing display advertising on Facebook, while in the wake of that announcement, both...

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