Facebook is taking the next step in providing a superior Desktop advertisement service. Along with the recent change of the news feed, Facebook will be updating the way sponsored Ads appear on home pages. Facebook’s announcement yesterday will look to revamp how Ads are viewed on the right hand column of the Facebook news feed, making them more in line with the new look Facebook. With a revamped Ad system for right side columns, Facebook will allow advertisers a more streamlined experience from the larger news feed ads, to the smaller, cheaper right side column Ad.
The intention is to generate higher engagement rates, and more effective visual marketing. Facebook will make the new Ads on the right side column larger than they currently are, and also lower the amount that is being seen at a time. As it stands now, up to 7 Ads at a time can be viewed on the right column, no official word yet on what the new number will be, but we guess that the new limit could be up to 4. Larger Ads, and less Ad clutter means prime real estate going forward for sponsored advertisements, as there will be less competition visually to steal attention. The updated Ads will mirror those that are placed directly in your news feed, meaning that you can use the same image for both, making your Ad campaigns visually simplistic and linear.
The move by facebook is on paper the smart move, and one must wonder if the update to the news feed was ultimately to update the Ad sections available on the site. Right column Ads have accounted for nearly all of Facebook’s revenue leading up to 2012, and since have accounted for 53% of Ad revenue as of end of July 2013. Facebook claims that in early tests, engagement for the new right side Ads have increased by 300%. This is great news for smaller budget minded advertising campaigns not willing to shell out larger cash for a full news feed Ad. Currently right column Ads cost roughly $0.30 per 1,000 viewers vs. $5 for news feed Ads, although costs for the new Ad style are expected to increase.The new Ads are not available to all advertisers at this time, yet by the end of the 2014 year it will be 100% available to all agencies and those wishing to utilize the service.
While this presents a great opportunity to update its online desktop Ad revenue sales, we at DataChamp24 are not entirely sure they are tackling this issue in the right way. With 68% of traffic going to Facebook through mobile devices, mobile users will have zero chance of seeing these new revamped right side Ads. Facebook mobile Ad revenue accounted for 53% of its 2.34 Billion dollar Ad sales in the fourth quarter of 2013, and both mobile connectivity and mobile Ad revenue numbers are expected to continue growing over the coming years for the company. Facebook would be better served off a stronger news feed experience for advertisers, or implementing the right side Ads into the mobile Facebook displays allowing for maximum reach potential.
What are your thoughts on Facebook’s news Advertising model? it is a significant change, or will its lack of availability on mobile devices ultimately render them obsolete.