Facebook Ads Part 2: The Economics of Intent
In my previous post on testing market demand with facebook ads, I extolled the virtues of the Facebook self-serve ad platform for testing feature/product concepts with live ammunition.
After further experimentation with the platform, I can state confidently that while there are some interesting opportunities for locally oriented products and service owner’s to take advantage of the city-level targeting, there are some fundamental flaws with the way that the Facebook ad auction functions.
The problem lies in the way that the auction for ad impressions/clicks functions. While Advertiser’s bid on a particular keyword in search advertising platforms such as Google’s Adsense, on Facebook, Advertisers bid on a certain demographic segment.
(more…)












