Yesterday afternoon a Facebook advertiser sent me a screenshot of a new advertising layout that Facebook has been testing. The new design is wider and also includes 5 advertisements instead of 3, which is the maximum number of Facebook advertisements currently displayed on pages by default. The new advertisement format comes at a time when the media is still looking for a breakthrough revenue model from the company.
One easy way to increase revenue is to increase the number of advertisements on any given page. The new format of the advertisements places the ad images directly next to the text related to that advertisement in a similar fashion to Facebook’s application advertisements. The advertisers I spoke with was somewhat frustrated because they didn’t know if they were being charged for the new ad layout which was being tested.
While the advertisers confessed that they preferred the new layout format, they didn’t like the increase in ads being displayed and the wanted more information about how the ads were being positioned. Google’s self-serve advertisement system for example, provides information about the average position that your ad is being displayed. Facebook in contrast provides less information about ad positioning.
Regardless of a lack of verifiable metrics provided by Facebook, advertisers that I’ve spoken to are seeing much higher conversion rates despite lower click through rates. The result is that advertisers keep coming back and continue increasing their ad expenditure. The advertiser I spoke to spent as much as $30,000 a month on Facebook ads although that has been decreased slightly due to the current economic environment.
Have you seen any of the new wider format ads? Do you prefer this new format or do you like the current one? What improvements would you like to see in the Facebook advertising system?
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This is like those "SidebarAds" or "Fusion Ads" that are popular among web designers. They'll definitely be effective at attracting more attention.
Comment by Montoya — April 2, 2009 @ 6:17 am
wider is better?
Comment by Patrick Courtney — April 2, 2009 @ 6:23 am
this might not be a better design. users are more likely to just ignore all 5, since it changes up the spacing.
My opinion anyway…
Comment by Facebook User — April 2, 2009 @ 7:31 am
Where are they getting the extra width to put it in the layout?
Comment by Eric Godfrey — April 2, 2009 @ 7:34 am
I do a lot of advertising on Facebook. My CTRs range from 0.06% to 0.98%. Recently I have noticed that I have been able to bid very low (0.20 below the minimum suggested) and still max out my ad spend. I am wondering if this will result in a very low inventory and we will be able to bid even lower. I think the focus will have to be very compelling pictures and subject line to compete with five other ads.
Although we get get great CTRs Facebook needs to spend energy on their Ad Manager. Its archaic compared to google adwords.
Comment by Shannon — April 2, 2009 @ 7:47 am
Shannon, I agree with you 100%. It's totally possible to go below suggested and still max out. However, this hasn't been a recent trend for me.
Maybe we should keep this hush, hush?
Comment by Facebook User — April 2, 2009 @ 9:43 am
After the redesign, I installed a script that blocks all the ads anyway, so I never see them regardless.
Comment by Facebook User — April 2, 2009 @ 11:22 am
I think it generates less attention per ad per page…. it may earn them more money CPM wise, but I expect to see CTR rates take a nose dive.
Comment by Facebook User — April 2, 2009 @ 2:48 pm
Ads? On Facebook? Really? Oh…wait…I use Firefox with some addons that both block ads and turn off that "Highlights" column. That would explain the whole "no ads" thing.
Comment by Steve — April 3, 2009 @ 3:48 am
I do not like the new home page on facebook!!!
Comment by barbara mccauley — February 4, 2010 @ 2:05 pm
I do not like the new format for facebook at all. Would like the old one back.
Comment by arlene greer — February 9, 2010 @ 3:48 pm
I hate the new ads! My facebook is 75% SLOWER than before the ads were used. It is not worth my time to continue using facebook and am considering removing my information completely. I am disappointed. The games do not work correctly, and my chat box is not working properly. Why would I want to continue using facebook?
Comment by Jessica — October 25, 2010 @ 9:04 am