Facebook Inc (NASDAQ:FB) took an initiative to improve quality of the ads by giving control to the user to decide on the ad viewing. The intention was to make sure that the user sees the ads that are aligned to their interests. CEO of Daily Mail North America, Jon Steinberg talked with CNBC’s Jon Fortt and Kayla Tausche about the Facebook’s ad initiatives on CNBC.
Steinberg thinks that this initiative is a great news for Facebook Inc (NASDAQ:FB) and its investors. He thinks that this might provide the quality score for Facebook advertisements.
“[…] Google pioneered this with making bad advertisers bad ads pay more. What Facebook is basically saying is, we are going to not only let people bury ads they don’t like, which they have always done. We are going to get feedback on why they don’t like the ads. That’s a move into strength […],” Steinberg said.
He added that this indicates the Facebook Inc (NASDAQ:FB)’s increased intention to be more critical on advertisers. Fortt feels that Facebook is the only pro team, whereas all the others depend on JV’s to tune the quality of advertisements.
Steinberg thinks that from the revenue generation and innovation point of view for ads, Facebook Inc (NASDAQ:FB) leads other social media companies. He also mentioned that Twitter Inc (NYSE:TWTR) are concentrating on targeted ads and also started a lot of initiatives to improve the quality of their ads.
He mentioned the Facebook Inc (NASDAQ:FB)’s announcement about users burying the ads. He said that the Facebook might give top most priority to users who bury lesser ads and lowest priority to user who bury more ads. This way they can eliminate the feedbacks of users who are not interested in advertisements.
Among the shareholders of Facebook Inc (NASDAQ:FB) is Citadel Investment Group, managed by Ken Griffin. As of 30 June, 2014, they hold around 4.6 million company shares.