Facebook is running out of places to put ads. As a result, the world's leading social networking service is expecting a slowdown in revenue for 2017. Despite having over 2 billion active users last month, the social media platform is reportedly planning to experiment with new ad spaces to increase its bottom line.
Facebook has already been placing ads in a number of areas, including its News Feed, Instagram, and even its videos. Earlier this year, the website started offering advertisers a way to run ads via video content. Users can now expect videos uploaded on Facebook to be interrupted by ads similar to YouTube’s advertising methods.
Unlike YouTube, video ads on Facebook run in the middle of a piece of content instead of at the start. Apparently, users are less likely to stop watching the video if an ad plays in the middle. While if the traditional way of advertising on video is applied, users can easily close the video if presented with an ad on the onset.
— Android Authority (@AndroidAuth) July 12, 2017
Over the past five years, News Feed has been Facebook's primary revenue source, allowing all types of businesses across the globe to purchase ad space. But now it seems that the areas to place ads on News Feed without sacrificing user experience have been maxed out according to reports.
The social media giant is attempting to counter this problem by focusing on ways to sell advertising space on Instagram Stories, Messenger, and even Marketplace -- its Craigslist-style platform that allows people to buy and sell used goods.
Earlier this month, Facebook announced that it would start selling advertising space on Messenger after testing the service in Australia and Thailand. The company is planning to start off with a small percentage of affected users.
— My Social PA (@MySocialPA) July 18, 2017
Meanwhile, marketing firms are preparing to capitalize on the new ad space on Facebook Messenger. Interested companies will be able to purchase ads from Facebook’s ad manager to target any demographic in the website's massive user base.