Tag Archives: Advertising

News flash: Facebook needs to make money

Now that it’s a publicly-traded company, it looks like Facebook is going to be a little bit more aggressive in monetizing eyeballs. This Forbes article uses their own Facebook data to demonstrate how many users could potentially see a “promoted” article, and what the cost would be – for $500 they can have an article inserted into news feeds of up to 250K people. Using these figures for a little back-of-the-envelope math means that having an article show up in a feed is “worth” (according to Facebook) about one-fifth of a cent per user. So every time one of those “sponsored articles” shows up in your News Feed, just remember – someone thinks you’re worth a fifth of a penny!

I’m not sure on how they calculate that worth (aside from obviously pricing it to the point where people are willing to pay), but no doubt they used data from this interesting feature to help.