Facebook to Re-Work their Advertisement Tools

Facebook has taken a bold step in consolidating their advertisement base, announcing a move that they hope will create a more streamlined ad experience for user and advertiser alike.  Feedback from market analysts kept coming back to the same concept: simplify the product base.

We have long been proponents of Facebook ads, for the granular level options in targeting your audience.  Historically Facebook ads have had a lower response rate the some of the competition, but the ability to hone it to your audience at a granular level, alongside only having to pay for results (with a pay-per-click versus a cost per impression model) has reduced the importance of the click-per-impression metric.

At present, Facebook offers 27 different ways to promote a product.  Over the course of 6 months, they intend to cut that number by more than half, removing those which are not successful, and combining previous tools that produced virtually the same outcome into a single tool at its optimal state.

The tool which will be most drastically revised is what is known as "Sponsored Story Ads."  Sponsored Stories are essentially Facebook posts triggered by user activity.  For example, if you "like" a Page, event, or story that is sponsored, there is a strong likelihood of this activity showing up in your friend's news feeds. (So-and-so has "liked" Tomatoes - You should like Tomatoes too!)

As you can probably imagine, Facebook users have also been complaining about this type of advertising, as notification inboxes get filled up with Sponsored Stories - with no way to opt-out of receiving them.  The original "liker" also may not feel the greatest about being publicly attached to a product name while it is being promoted across all of their friend's Facebook feeds.

Now while this tool has been successful for advertisers (13.7% more successful at getting another "Like" than Facebook's non-social ad products).  It is also quite a bit more expensive than non-social ads- 43% to be exact.  Additionally, there are at least a half-dozen different "actions" that an advertiser can choose to sponsor.

In part of Facebook's simplification effort, Sponsored Story ads are going to be merged into the already-existing Page Post Photo Ad. Instead of announcing the activity of the individual who "liked" the product, the post will show up with a recognizable message from the brand, making the overall look of social-based Facebook ads much more consistent.

In their announcement, Facebook stated that ultimately they want to both "eliminate redundancies" and "make ad units look more consistent."  We hope that this will create a better overall Facebook experience for users, and a more productive use of marketing resources for companies.

Looking to advertise on Facebook?  Aren't entirely sure what these changes would mean to your company?  Give us a call!

Jason Finn

Founder & Chief Geek

Jason has nearly 20 years of consulting experience, predominantly in the technology space. Most recently he was the COO and Director of Technology for Rich Casto & Company, a national training and consulting organization in the real estate industry.
As a consultant for IBM, PricewaterhouseCoopers LLP, and Envision Consulting Group (now IMS Health), Jason has served clients of all sizes, including Big Pharma, Fortune 500, and Global 1000 companies:

  • Allstate Insurance Company
  • AOL (America Online)
  • Astellas Pharmaceuticals
  • Eli Lilly and Company
  • Ford Motor Credit
  • Wockhardt USA (formerly Morton Grove Pharmaceuticals)
  • Norwich Union
  • PNC Bank
  • Reynolds and Reynolds

Sarunas Budrikas

Creative Director

Sarunas is a web design and development expert with hundreds of successful projects in his portfolio. He is passionate about delivering extraordinary user experiences for every client and consistently goes above and beyond everyone’s expectations. As an SEO expert and strategist, he can optimize your website, or app, to get the most out of it, day in and day out. Sarunas holds a degree in Electrical Engineering from Kaunas Technology University, in Lithuania. Sarunas now lives in Chicago, and calls it home.

Alexandra Olsavsky

Client Experience Specialist

Alex specializes in content generation and social media promotion for Geek | Chicago clients, helping to solidify their presence in the online community. This includes blog writing, graphic design, co-ordination and design of weekly newsletters, and active engagement on Facebook, Twitter, Google+, and LinkedIn. Outside of Geek, Alex is a classically-trained soprano who professionally performs around the city of Chicago (most recently with the Chicago Baroque Band, and with the Rolling Stones for their "50 and Counting" tour).