In preparation for it's IPO, Facebook has been focusing on strengthening it's advertising business. Advertising is one of Facebook's primary revenue sources.
Facebook's latest release is a tool called Premium on Facebook, which gives advertisers more options and an ability to make their ads more prominent within the social network. These new premium ads have been creating 5 to 10 times more click-throughs and a 3X ROI based on two months of testing. The Premium ads are larger and will start as a FB Page post and then appear as an ad unit on the right side of the user's home screen within the social network. Another interesting component of this new advertising release is the "Reach Generator." Premium advertisers can now get guaranteed news feed distribution of up to 75 percent of its Page fans for a price.
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