Richard Gorman Predicts the Future of Facebook Advertising in 2013
As Facebook Looks to the Future With Uncertainty, Direct Response
Marketer Richard Gorman Shares Thoughts on How the Social Network
Might Better Incorporate Advertisements
NEW YORK, NY -- (Marketwire) -- 01/10/13 -- Advertising is something
that everyone is familiar with, according to Richard Gorman; whether
an individual works in marketing or is simply a consumer, ads are
everywhere, and they are critically important to the way business
works. Ads are especially important for businesses that make their
products and services free; without ad revenues, there is simply no
way for these businesses to stay afloat. Facebook is a company that
falls into this category. Signing up for a Facebook account has
always been free, but, according to a recent article from Tech
Crunch, the social networking giant is facing an uncertain future, as
it considers ways in which it might better integrate ads into its
service. The article has won the attention of online marketing
pioneer Gorman, who has weighed in on the issue of Facebook ads with
a new statement to the press.
"The Facebook business model puts the company in a difficult place,"
opines Gorman, in his new press statement. "The reality is that
Facebook has existed for so long as a free service that the company
now faces difficulties in figuring out how to monetize its services,
and keep shareholders happy. Advertising revenue is the answer, but
for a service that thrives on a seamless user experience, effectively
integrating ads is tough."
As Tech Crunch notes, Facebook has found itself caught between a rock
and a hard place. The social network thrives on people, who
contribute content that is, in turn, public, private, or personal.
Facebook can seek to monetize some of this content, but not
necessarily all of it. At the same time, the company has shareholders
to think about, and its services remain free, even as other,
alternatives to Facebook grow increasingly common. "Facebook does not
necessarily need to worry about users jumping ship for other social
networks, because there is nothing truly comparable with Facebook at
this point in time," offers Gorman. "With that said, they do need to
ensure that their service loses none of its luster or its
attractiveness to users, or else Facebook really could see its daily
active user statistics begin to slip."
The Tech Crunch article says that Facebook's efforts to introduce ads
are practically destined for failure, because they will almost
certainly fall into one of two categories -- either these ads will
rub users the wrong way, or they will be so unobtrusive as to be
altogether ignored. "This is the conundrum that Facebook must deal
with if it wishes to really get serious about ads," says Gorman.
"Introducing ads may prove necessary to keep the shareholders happy,
but it is equally necessary to keep the Facebook service appealing to
users -- something that the introduction of ads could ultimately
Current models of Facebook advertising, Gorman says, leave something
to be desired. "What many of us are seeing is the incorporation of
'sponsored' or 'suggested' posts into our Facebook news feeds,"
Gorman says. "The problem is that these ads are not necessarily
related to our interests or our industries, and because Facebook is a
place where we go to get content that is customized to our
personalities and our desires, these irrelevant ads, embedded between
posts from friends and family members, only serve to disrupt and
The direct response marketing pioneer says that the answer may lie in
Facebook taking a few pages out of the content marketing playbook.
"For Facebook ads to be both effective for the advertisers and
non-irritating to users, they are going to have to be more carefully
targeted to the interests of users," he explains. "Additionally, they
are going to need to take the form of enriching, engaging content --
as in, compelling articles, how-tos, or entertaining videos.
Straightforward product promos are going to have a very limited
effect in a Facebook newsfeed."
The only alternative to content marketing, Gorman concludes, is the
introduction of a "premium" Facebook membership, wherein users can
pay to have ads removed. "This model works alright for service like
Spotify, but it is doubtful that it would work for Facebook," Gorman
says. "It is the kind of move that could damage Facebook's brand,
which has for so long been built on the notion that the service is
totally free for everyone."
Richard Gorman tweets regularly about topics related to online
Richard Gorman is a marketing innovator, a serial entrepreneur, and a
major name in the direct response marketing field. His brand, Direct
Response, is one of the leading named in affiliate marketing; through
Direct Response, Gorman gives away millions of dollars in trade
secrets and insider expertise, all as a part of his passion for
delivering value to other companies and industry professionals.
PR Management, Inc.
Press spacebar to pause and continue. Press esc to stop.