Facebook’s Demand Of $710,000 A Day For Log-Out Page Ads Is Impractical?

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Facebook has demanded whooping $710,000 from those companies who will publish their ads in the log-out page of Facebook, which will be visible to U.S people only. A report generated by Ad Age claims that Facebook will charge $550,000 for home page ads and $160,000 for log-out page ads. However, It is not clear whether $550,000 is monthly fees and $160,000 is daily fees.

Facebook is not going to sell its full-page for ads; only a portion of it is going to be up for advertisers. Undoubtedly, the set-price is very high for an online advertisement compare to other leading ad networks. Also, I think no one bothers about what is coming on the page once a user logs-out of Facebook. There will be very small number of people who will pay attention to the content after their business is over with Facebook. In such scenario, Facebook advertisement price tag will only attract bulls of the business who cares more about the branding rather than business from online advertisements.

Interestingly, this demand is only for U.S. users and if Facebook will have anything to do with other countries with same business model, surely advertisement price will be subsidized but marginal.

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Facebook announced this new promotion at the end of February and after almost a month Bing and Subway are only companies who are willing to pay Facebook for log-out pages.

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