Facebook eying to redefine its ad market, will kill sponsored ads unit

Facebook seems to be all set to revolutionize its ad market with series of recent announcements as now the  company plans to kill its ‘sponsored ads’ ad unit which was introduced last year and add twitter-like hashtags instead.

In an effort to prove that social networks are as important to advertise as Televisions, Facebook has introduced new tools to help big brand name advertisers target their messages more effectively. The company, last week announced that it will streamline its number of ad units over the period of next six months and reduce the ad units from 27 to few.

Facebook has declared to phase out ‘sponsored results’ ad unit, in the month of July.

Once sponsored results gets eliminated, it will still be delivering search ads results in a slightly different way, according to which when a user enters any query in its search box and then clicks on the “Web search” option, he/she will see sponsored links from Microsoft’s Bing engine. Its graph search will have no changes and will be available for users as earlier, which allow users to access related info when looking for something.

But in order to help Facebook users search about a specific topic and solve similar problem that sponsored search was solving, Facebook intelligently introduced hastags.

These clickable hashtags will now help users to view discussion feeds and identify topics being discussed on the social networking site. They will be available for users in the coming weeks.

Similar to Instagram, Twitter, Tumblr, or Pinterest, hashtags on Facebook will allow users to add context to a post or indicate that it is part of a larger discussion. When hashtag are clicked one will be able to see a feed of what other people and pages are saying about that event or topic.

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“Hashtags are just the first step to help people more easily discover what others are saying about a specific topic and participate in public conversations. We’ll continue to roll out more features in the coming weeks and months, including trending hashtags and deeper insights, that help people discover more of the world’s conversations,” states the Facebook’s official blog by  Greg Lindley.

But Unlike Twitter, hashtags on Facebook will have privacy settings, means putting hashtags on a post will make the post visible only to friends.

While killing its Sponsored posts Facebook announced, “In keeping with the goal of streamlining our ad products, starting in July advertisers will no longer be able to buy sponsored results. We’ve seen that most marketers were buying Sponsored Results to advertise their apps and games and we already offer mobile app install ads and Page post link ads on desktop to achieve these same goals.”

Whether or not the social network would manage to increase its ad revenues, one thing that Facebook should be very conscious about is that these upcoming changes should not end up in alienating the users.

What other development it engages to increase its ad profits and how it affects the ‘King of Social Networks’ will be discovered in future as Facebook has more plans ahead which they will be announcing soon.