Facebook’s Updated Photo Viewer Improves Ad Visibility
Regular Facebook users recently woke up to a surprise, with the website adopting a markedly different format to view photographs. This is one of the many design changes Facebook might bring out this year to further improve its display ad visibility. Facebook leads the social networking space and competes for ad dollars with players like Google (NASDAQ:GOOG) and (NASDAQ:YHOO) Yahoo.
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New Format Reserves Separate Space for Ads
In the upgraded photo viewer, the photos appear larger and users can read comments easily while still being able to see the complete photograph on their screens. There is a new “comment side-bar” that appears next to the photograph, which is a marked improvement from the previous format where users had to scroll down to see the comments. If case of fewer comments, the empty space in the side-bar is used for sponsored links.
Considering that an average of 250 million photos were uploaded daily to Facebook in Q4 2011, [1] this is a smart move by Facebook to improve the aggregate paid clicks for its ads and thereby increase monetization.
The updated Trefis valuation for Facebook stands at roughly $74 billion based on the revisions to our forecasts for Facebook’s metrics, including revenues, EBITDA margins, capital expenditures and net working capital.
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