The current features of Facebook “Ads” have not been in place as people think it was from day one of Facebook foundation. Let’s look at what Facebook looks like before the existence of ads. Before you proceed with promoting your product and service on Facebook, I will advise you have your Facebook Ad Budget
Facebook first existed for the very first two months by the founder, Mark Zuckerberg in February 2004 without ad features. Mark Zuckerberg believes in making people happy in order than making money in his early days. He conceived the idea to introduce advertising to make up the cost of paying for servers to support the growing user base. This was after one month of Facebook existence.
On the introduction of this feature, a co-founder Eduardo Saverin took it upon to secure some small advertising deals for the site. He started making secure advertising deals for a few small companies that are into T-shirts and other products for college students. The first-ever ad took on in April 2004.
Earlier on, Facebook packages ads in two different sized banners and as well with Facebook Flyers that allows marketers to buy ads targeted to all users with a specific school’s.edu email address.
The current product that is used has transformed from the previous products as Fidji Simo the Facebook product manager for ads insisted on a new refining experience.
This is what Facebook ads were like earlier….
This had limitations as it does not specifically filter the set of advertiser’s target. Businesses that wish to reach younger demography of people were unable to initiate that because of poor ad pitch over the ability to target a set of people. With time, Saverin brought in a firm known as Y2M to help sell ads on Facebook. They first sold MasterCard, making the ads for a special credit card for college students.
Mark Zuckerberg after some while terminated some advertisers like Mercer Management Consulting and Goldman Sachs. But in 2005, he got to see more reasons for advertising and took up to reconcile with advertisers. Then after he began to build up his in-house as a sales team. Now they ensure that they protect the user’s experience as it is now placed closer to the content of the pages. Facebook seeing the deals of Apple and how it helped them to generate hundreds of thousands of dollars per month, they went beyond a simple banner ad.
As of 2006, Zuckerberg when Mike Murphy was introduced to Facebook as ad sales chief, Facebook has evolved to somewhat than before. In as much Mark Zuckerberg does not like advertising as we said earlier, he turned out to become a fan of ads. And then encourages and supported to engage in sophisticated ad units via sponsored post, retargeting efforts and many others. This has boosted its revenue.
Let’s take a look at the revenue that the ad has brought to Facebook in less than a decade.