Facebook Inc. has announced that it is expanding its advertising activity in Israel by adding ads to its homepage. Until now, it was only possible to advertise on the inside pages.
Facebook is selling the advertising space via Oridian Online Media Solutions Inc., which was acquired almost two years ago by Indian agency Ybrant Digital Ltd. for $20 million. Herzliya Pituah-based Oridian began selling advertising for Facebook two years ago. Although Oridion does not have an exclusive contract, it is the only authorized agency permitted to insert ads on Facebook Israel's homepage. Advertisers who want to place ads on Facebook Israel's inside pages can also do so through Rekhesh Media, or independently.
Facebook Israel recently reached operational break-even, and is under pressure to boost its advertising revenue.
Some parties are skeptical about the homepage advertising. Y&R Interactive Israel CEO Eran Geffen said, "I believe that advertising on banners on social network sites is like sending an insurance agent to push into a conversation between friends at a pub. Social networks are a different arena, so it is no wonder that all networks are struggling to monetize. Whereas Google makes an average of $20 per user per year, Facebook makes less than $3." Geffen is currently setting up a start-up for brand promotion on social networks.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2009
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