Facebook Pays Viewers To Watch Ads: Desperate Ploy or Brilliant Tactic?

Probably more brilliant than desperate given Facebook's valuation, the increase in shadow stock price growth per additional advertising impact point makes this a very inexpensive way to add numbers and credibility. It also squarely addresses the concern that people dont want to see ads on Facebook. Given that viewers have to wade for free through oceans of baby portraits, group reunion shots and stupid-party-face photos, receiving ten cents for looking at an ad that probably at least has some decent production values doesnt seem like tough duty. Todd Wasserman reports on Mashable:

"Facebook on Thursday introduced a program that, in effect, offers consumers a financial incentive to watch ads on the site.

Facebook will now reward users who watch certain ads on the site with Facebook Credits, which can be redeemed to purchase goods on Facebook Deals, the company's new Groupon-like daily deals service.

The incentive, however, is not huge. Initially at least, the average ad will yield one credit, which is the equivalent of 10 cents.

The ads will mostly be in games. CrowdStar, Digital Chocolate and Zynga are among the participating game publishers. Facebook is working with Sharethrough, SocialVibe, Epic Media and SupersonicAds to serve ads on the program as well as TrialPay, which will provide analytics.

Dan Greenberg, CEO of Sharethrough, says that Facebook's move represents "a step away from interruptive advertising." Greenberg, whose clients include Microsoft and Nestle, says his network won't deliver traditional advertising, but rather branded entertainment, which consumers will want to not only watch, but share with their friends.

Incentivizing consumers to watch ads is one solution for Facebook's low banner click-through rates. The move comes after Facebook expanded its Credits program last week to let consumers use the Credits to buy real-world goods advertised in Deals.

Previously, the credits, which were awarded for consumers who signed up for various programs (like magazine subscriptions) or bought outright could only buy virtual goods.