Facebook Making Billions The Same Way Google Did: Cashing In On A "Broken" Product

Broken Computer

Photo: Flickr

Yep, that’s right. Google built a $29 billion on the simple fact that Google search results don’t always produce the “right” result, at least in the eyes of anyone with commercial interests riding on Google search results.So Google “fixed” that back in the day with AdWords, which made it possible for businesses to buy advertising based on search terms. Today what major brand (and many smaller ones) doesn’t protect itself against errant search results by buying AdWords to stay on top of results for its name?

Facebook is on the same track. Most Facebook members’ Top News feeds are a blur, but that’s where tens of millions of people have their eyes fixed nowadays. Marketers yesterday congratulated themselves for setting up Facebook Pages, generating page fans, and programming the pages to popuate their fans’ news feeds. Today marketers are fast figuring out that it’s very tough to stand out in those fast-moving feeds. What good is that special offer if most of your fans never see it?

Facebook has a devastating solution: Buy advertising, not just for your page or product, but for each post on your page. Facebook just rolled out a new system, explained here, that makes this easier than ever. You can advertise a post to fans of your page, who presumably are more likely to see the ad post when it lingers in the right rail instead of flying by in the Top News Feed. But that click is going to cost you — maybe a $1 or well more depending on your crowd.

If anything, this is even smarter than what Google did because advertisers (like me) are buying advertising on Facebook to drive traffic within Facebook. That’s one up on Google.

Pure genius.

This post originally appeared at One Last Question.

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