The company publicised new advertising rules at its first marketing conference in New York, hot on the heels of Facebook’s IPO announcement.
Since the company’s IPO announcement, which could see Facebook reach a $100bn valuation, there has been great speculation as to how the social network would boost its revenue figures in a bid to please Wall Street.
Last night the company unveiled ‘Premium’, which will allow brands to advertise on Facebook’s mobile app for the first time. Until now, Facebook has resisted the temptation to sell adverts on either its mobile site or app.
If a user has ‘liked’ a brand or company, they will also start seeing adverts from that business in their news feeds from April onwards.
Adverts around the sides of Facebook profiles and the news feed will be larger and video advertisements will start happening too.
Despite money generated from advertising accounting for 85 per cent of Facebook’s revenues last year, and its net income in 2011 reaching $1billion, the company will have to radically change the way it cashes in on its users’ data to make good on its valuation, says digital agency heads, who see these changes as just the beginning.
Facebook has also rolled out Timeline, its new profile page, to brands such as Manchester United and Burberry, in a bid to allow them to chart their entire commercial history in one place.
Manchester United, Burberry and Dove, have all updated their brands page on the social network to the new style, which until now has only been reserved for Facebook users.
The new layout, which allows users to share their entire life history in one scrollable page, is becoming compulsory for the site’s 850 million members imminently.