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Sep 5
Facebook changes its business model

With a major revision to its homepage, Facebook has taken a chance on losing some page views, and possibly ad revenue, through its interface changes.

Facebook co-founder and Chief Executive Mark Zuckerberg said concerning the changes that "Before, it was an encyclopedia model, but now we’re changing to a news model."

facebook.jpgThe changes that caused the announcement were concerning the homepage. The former page would show links to the profiles of users friends, while now there will be a focus on updates as they log on to their homepage.

It will have more of an RSS feed feel to it as it will show anything new added to their friends' profiles. It will save the users a lot of time and effort by allowing them to see updates on the homepage instead of individually searching out each friend's page to see if anything has been added.

The question that some have is whether this will take away from ad revenue because it will probably result in less page views per user. I'm not so sure that this will be the result. If new things are added, there is a higher probability that someone would visit the friend to see what it's all about.

What it may do is cause the user to possibly stop visiting some friends that don't update as often. It's possible that it really won't change overall views, but rather just target the more active users. Do you think it will change the page views at all?


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