Facebook has revealed that it is not planning to insert ads into its Paper app, yet. But the social networking site said it would surely post ads in its new product in the future. It is expected that the news aggregation site would also be among the revenue generators for the company.
Based on the statement by COO Sheryl Sandberg, Facebook is still taking its time to learn the best way to make the new app a good money maker in the future. She was quoted during her speech in the Goldman Sachs Technology and Internet Conference held last February 11.
Investing time for research
Ms. Sandberg reminded the audience that when Facebook launches products, it usually invests longer time before putting in ads. In general, that is how the company does business. But it is also observed that the time spent for doing such research usually becomes worth the wait.
Paper is a hybrid news reader that was launched online less than two weeks ago. It provides updates in news feeds from friends and family and more importantly, about world news. The content is sourced from various dailies and news aggregators worldwide.
According to Ms. Sandberg, it is logically very easy to determine how ads could effectively fit into Paper. But the company thinks there is no good enough reason to do that. Facebook now focuses monetizing the products that it already has.
Ads as inevitable lifeline for Paper
As always, advertising is a lifeline for free social networks like Facebook. This is more applicable in mobile platforms. Just recently, the company launched auto-play video ads on its news feeds. The first one is a promo for the movie ‘Divergent.’ It automatically plays as users scroll through the news feed.
Paper would not be swamped by ad announcements soon. But most analysts believe that ads for the app would just be inevitable. They recalled that it was also the case for Instagram, the photo-sharing site owned by Facebook. Just last fall, Instagram launched ads to its users’ feeds.
Paper was launched just a week before Facebook celebrated its 10th anniversary. Back then, the company said it thought a news aggregation app would provide more meaningful and interesting content in users’ news feed. Not surprisingly, Paper was launched without much festivity, just like how the 10th birthday of the company was commemorated.