Facebook Tests CPC Based Search Ads

Jul 23, 2012 • 8:07 am | comments (4) by twitter Google+ | Filed Under Social Search Engines & Optimization
 

TechCrunch reports that Facebook is testing a cost-per-click (CPC) based search ad in the search header.

They shared a screen shot showing one of the search results labeled as "sponsored."

Facebook Search Ad

I personally cannot replicate it but they have word from Facebook that these ads are currently being tested and they are testing charging a CPC for them.

Facebook wrote:

The Sponsored Results will look just like organic results in the typeahead search box atop every page, except for being marked with a tiny word “Sponsored”. Facebook tells me they’ll be sold on a cost per click basis, can be targeted to people searching for any Page, app, Place, (and possibly event) without that business’ permission, and the tests begin tonight.

Sponsored Results are not keyword ads. Advertisers can’t target something broad like “beach”, “games”, or “cameras”. They have to target a specific entity on Facebook, similar to how brands can currently target users with sidebar and Sponsored Story ads based on a user’s interests. For example, Sponsored Results could be targeted to people searching for “Sandals Resort Hawaii”, “CityVille”, or “Nikon Camera”.

A WebmasterWorld thread claims this is only done because Wall Street wants them to earn more money. I am sure this has been in the pipeline for a while but I wouldn't disagree, they need to monetize more and smarter.

Forum discussion at WebmasterWorld.

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Comments:

Barry

07/23/2012 07:51 pm

Looks cool.

Alan

07/24/2012 05:51 am

About time

sestuff

07/24/2012 10:36 am

Interesting how no one has anything negative to say when Facebook adds ads, yet when Google focuses on ads, you don't hear the end of it. Facebook stock = current Google situation. What you see happening at Google right now, you will see happening at Facebook very soon. It's all about revenue and ways to improve revenue. I haven't been screwed by Google yet because I'm pretty new at dealing with them. I have however, been in similar situations with other publicly traded companies. I can tell you that they are all the same. They basically use you as a stepping stone while they are new and growing. Once they become big publicly traded companies, it's goodbye. Big names (multi million and billion dollar companies) are the only ones that can hang with them. Keep a close eye on FB ;)

Sigh

07/30/2012 10:46 pm

This issue isn't that Google pushes paid ads. The issue is that they raped the organic listings and the SMB in the process. The SMB was demolished by the organic updates from the past year causing CPC and Ads per Search to skyrocket. Facebook has a golden opportunity to take a massive amount of market share by feeding the SMB. The millions of small businesses that have been spurned by Google would love an alternative. Facebook just needs to grow a pair and enter the search market.

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