Facebook, Google+ eye increased ad revenue with new user-centric features

It seems eyeballs alone are not enough for social networking giants, as making money out of the millions of users become increasingly important.

The recent similar changes on the pages of Facebook and Google+ - both announced in the last two days - hint at the focus to increase revenue from advertisements, say analysts and social media experts.

Cyberland is abuzz with comment of how this time, Facebook (FB) has probably taken a leaf from Google+'s book and was also trying to take a few lessons on getting advertisers on board.

The common theme of the new looks are large pictures, a de-cluttered look for ease of use and easy access for advertisers. Both are focusing on visuals. Large visuals also mean businesses can put up bigger, eye-catching photos. Facebook has claimed nothing has changed when it comes to ads but has conceded these will take up more space due to the redesign.

The features of both players also seem to suggest a move in favour of the user. A more engaged user experience is imperative to attract advertisers.

"In the case of Facebook," said Mahesh Murthy, founder and CEO of Pinstrom, "this is a big move to assuage advertisers and increase revenue from them. After the initial public offering to increase its revenue, FB had cut free virality of feeds, which meant users were not getting access to all the feeds, which did not augur well with advertisers. With the change, they have put the view control in the user's hand. With this, they have assuaged the advertisers and are hoping users will agree with FB. In the case of Google+, the changes are not much, as it is still slow growth for them."

Facebook has given more control to users by introducing a Hide button to shield them from sponsored stories. It has also introduced Following, a feature allowing users to follow content created by them and follow public figures. This will make advertisers understand better what the user is watching. Also, with a single view of FB on all devices (web, mobile and tablets), it is also trying to replicate its success in advertisement revenue on mobiles to other devices.

Moksh Juneja, Founder and CEO, Avignyata, a social media marketing consultancy, also said the new visual element will make advertisers become creative.

"If you cannot bring something that can keep the user engaged, you lose them. This is also an interesting time for advertisers, as they want to start monetising their fan base. It will be easier now to sell the concept of social media to reluctant advertisers," he added.

Social media analysts said Facebook was getting serious about getting some money from advertisers but not at the cost of user experience. "In the market place (brand community), Google+ is now positioning itself as an important resource for SEO (search engine optimisation)," said Hareesh Tibrewala, joint CEO, Social Wavelength. "It is also introducing the concept of 'authorship' and the '+1 feature' actively. This is a killer positioning if it takes off. Also moves search from being machine mandated to more human mandated. In the FB changes, more real estate for promoted posts, this will increase engagement ratio. With the Hide button, ads that don't create value will see a definite drop in traffic."

"For advertisers, these moves should result in more effective advertising, particularly for local businesses," said Andreas Pouros, COO at Greenlight, a digital marketing agency in the UK. "For users, both changes provide a better user experience and extends the functionality of both platforms - both these moves will, therefore, be welcome. Facebook, however, is being far more aggressive with advertising against its platform than Google is with Google+ (no advertising at present)."