Facebook To Display Sponsored Ads in News Feed – Why?

What’s the source for Facebook’s income? Being a social networking site, you will of course wonder how Facebook earns money. There have been rumors running and still run, quoting that Facebook earns bucks by selling the users’ information. But that’s fake. Here is how Facebook earns.

You must have come across ads displayed in the Facebook sidebar. They are called Sponsored ads. A sponsor makes the ads and gives them to Facebook for a particular cost. Facebook then, embeds the ad in the site and when an user clicks the ads, the sponsor gets traffic and gets a huge popularity. By these ads, Facebook mints lots and lots of dollars and save them in it’s giant pocket.

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With the general outline of how Facebook works, you will now understand why Facebook is announcing the introduction of Sponsored stories in the News Feed. Until now, Facebook users have been prone to see the Sponsored Ads only in the sidebar section. According to a Facebook spokesman, Facebook will start displaying the ads in the News Feed staring from January 2012.

This called the Sponsored Stories, integrates certain ads in your News Feed only if you or your friends like or share it. According to Facebook, users will not see more than one ad a day in the News Feed. Also, users will not have the option to disable the appearance of these ads. Rather, users can hide the sponsored stories by hitting the “x” mark available there, once they see it.

So, what kind of sponsored stories appear in one’s News Feed? Facebook is taking utmost efforts to ensure that users see sponsored stories only from pages that they like and not from people who are not friends with them. With the aim of hitting the $100 billion IPO mark in the upcoming year, will this new Facebook feature succeed?

In you want to know more about how Facebook earns or how Facebook ads work, check out Advertising on Facebook or alternatively, you can find a small box at the top of Facebook when you login today. On clicking the link Get the Details available there, you can land up in the Advertising on Facebook page.