Facebook Advertising: What Brand Managers Need to Know about the Latest Changes

Facebook recently announced additions to their advertising offerings, continuing their efforts to provide ways for brands to deliver brand stories to existing and potential brand fans. Because of the Facebook Edge Rank algorithm, most brand posts are seen by only a small percentage of their fan base, (an average of 16% according to Facebook). By purchasing advertising units, brands can target their own fans (and others) with advertising units to ensure the brand’s message is seen by the folks to whom it is directed. In addition to the ad formats discussed in earlier blog posts, Facebook has added some new advertising formats:

  • Mobile: advertisers may now deliver ads to Facebook’s mobile platform.
  • Newsfeed: along with the placement in the right rail, premium ads are “eligible” to be delivered to the newsfeed.
  • Social features: premium and marketplace ads will offer like, share and comment features,
  • Large format ads delivered on logout.
  • Reach Generator is a product that guarantees 75% monthly/50% weekly fan visibility for Page post activity.

Most premium ads are limited to 90 characters, and must originate as posts on the brand’s timeline.

Since ads originate as posts, brands have the opportunity to maximize ad effectiveness by using only those posts that have been most effective in generating fan likes, shares and comments.

These new units and the new Reach Generator product ensure that the content brands develop for Facebook is actually seen by their brand’s fans. Although these changes reinforce the fact that Facebook is NOT free, brands that make the investments in quality content and distribution mechanisms will be able to establish strong and ongoing relationships with the people that use their products, and expand their reach across their fans’ social graph.

For more thinking about the mix of investment for ads vs. apps, see this AdAge article: http://adage.com/article/special-report-audience-buying-guide/brands-market-facebook-spending-money-advertising/233929/