Facebook starts to charge for Offers, woos Wall Street

21.09.2012

Patrick Moorhead, an analyst with Moor Insights & Strategy, said taking a step like this could bring in solid revenue and appease Wall Street all in one move.

"It is vitally important for Facebook to make forward momentum on initiatives that drive revenue and profit," said Moorhead. "Any move that Facebook makes to higher future revenue and profits will appeal to Wall Street. This is a nice start but Wall Street needs to see end-of-quarter profits to really be confident in Facebook."

Rob Enderle, an analyst with the Enderle Group, said this is a good time for Facebook to start charging businesses for daily deals service.

"It's not a bad idea really, and it is about time they started collecting money for targeting ads," said Enderle. "It looks to be a solid idea, but with Facebook, execution has been really poor largely because of what appears to be massive inexperience with how advertising works. I don't think this is fixed yet and I expect investors will be watching to see if Facebook can execute before getting too excited."

Moorhead, though, said Facebook was smart to let businesses use Offers before they started to charge for the ads, giving them a chance to see how well the deals service works.