Kurt Wagner on the Marketplace tab (which I hate) in the Facebook app:
There must be enough traffic to the tab, though, that Facebook sees value in running ads there.
Facebook makes almost all of its revenue from advertising — just under $27 billion in 2016. But the company has recently started to tell investors that it is running out of room to put ads in its core moneymaker, News Feed. As a result, Facebook has started to test ads in a handful of new places, including its standalone messaging app Messenger.
Anyone else feel like this is a bigger story than it may seem on the surface? With Facebook running out of places to put ads in the Newsfeed (since it can't -- or at least shouldn't-- be 100% ads), they're increasingly putting ads everywhere else they can. This includes Messenger -- which is probably only the second-worst idea for Messenger, after cramming Stories in there -- and now the backwater that is Marketplace.
I continue to believe Facebook is very fortunate to have Instagram. Not only are they executing at an insanely high clip, it's a natural and obvious fit for ads. And it's already a big business for Facebook as well -- one which will continue to get bigger.Read more...