Facebook Inc (NASDAQ:FB) launched a new app two weeks ago called Paper. Paper is a news reader for your Facebook News Feed along with other categories of news. Facebook’s executives said that they are still in the early stages of understanding how people are using the app so they have not considered how to profit from the platform yet.
“When we launch products, we are willing to invest for a long time before we put ads in it,” stated Facebook COO Sheryl Sandberg at the Goldman Sachs Technology and Internet Conference as quoted by CNN. “It’s quite easy to see how ads could fit into [Paper] … but there’s no reason for us to do that right now — we’ve so much to do with the current monetizing of current products we have.”
Facebook’s primary revenue source is advertising. The company reported $2.3 billion in revenues during the last quarter, which is a 76% increase over the previous year. There are no plans for Facebook to increase the number of ads that are shown in feeds, but the company will be boosting the variety of ads and quality of ads that is displayed. Facebook is also going to launch video ads that automatically play in news feeds, which will have a gradual rollout.