With all the feedback collected from the marketers and understanding the need to simplify its offerings, Facebook has announced its plan to streamline the number of ad units from 27 to fewer than half and make them consistent.
Facebook is trying to work towards object oriented offerings from its ad products rather than the wide selection of the inventory on its platform for the advertisers. It also aims to remove the redundancies in its products which are aimed towards fulfilling the same objective.
Which means Facebook will be removing Questions product for Pages, online Offer product to start with. Facebook now will also add the social context in Page post ads as ‘Sponsored Post’ automatically to boost performance which a marketeer was earlier buying separately when they created such ads. Though it can mean more ads in the Facebook feed for the users.
The media will also make the ads more consistent in visual display and will reduce the number of ad formats which marketeer had to choose from earlier. These changes also aims to optimize the user experience on Facebook.
The changes will come into effect in coming weeks and months and will help advertisers to get a simple and optimized solution to achieve clear objectives.
Now with lesser number of inventory to choose it means the cost per inventory may increase for the marketeer, though they can work towards achieving the same objective as per the optimized performance of the newer ads model.
Facebook in order to keep growing its revenues with lesser number of products directly means higher number of insertions in between the posts. We will wait to see for the changes to happen, as how users react to it, which can matter the most to Facebook. Facebook is also expected to start with video ads this year.
Facebook’s did $1.25 billion of advertising revenue in Q1 2013 out of which around $875 million came from web advertising and $375 million came from mobile.