Why Facebook did not give sell-service ad-selling to Google nor Microsoft? (And why media did)
We talked yesterday about Fast-Flip, that great last century innovation re-discovered by Google. (A good example of how Google understand that innovation is also about recognizing good ideas). Today we may talk about something very similar. Silicon Valley insider expect facebook to have the following mix of revenues (forget about volumes and concentrate in percentages):
Media revenue is much more based in brand ads (or, what we call “display”, although it is possible to sell performance paid ads through a self-service). They argue that this is due to the promotion of virtual goods through the platform, the advertising of TV shows online, and, mainly the great usability of buying ad space there. In fact the main reason probably is that mainstream advertising, or, in other words, massive indiscriminated “branding” advertising did not reach Facebook yet.
No matter the reason, what is necessary to reconsider is:
First: why they may get 36% of revenues from self-service while an average media site is, probably at a level of more or less 10%.Why do not media sell mor ad-space performance-based to SMEs. This is about getting more people to bid.
An then, secondly, taking into account that, yes, there are experiences of selling display through self-service, whether it is the time for media brands to have their own performance paid advertising selling platform. In fact, again, we are talking about adopting the best practise, like we did yesterday.
At this moment, media are mainly implementing either Google or Microsoft for selling our ad-space. Interestingly, Facebook is not doing it. Facebook is using neither Microsoft nor Google to sell advertising. Does this fact have something to see with the successful self-service performance in the Facebook Revenue Mix?

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