Facebook to Launch a New Premium Ad Product
With the Facebook IPO the hot topic of the year so far, plans that they are to launch a premium advertising platform is perhaps not that surprising. These plans were leaked to the world yesterday however via technology site Gigaom.
The focus of the new premium advertising platform will see new, larger adverts being rolled out onto the social network from the end of the month. Facebook hope that the new ads will be 80% more memorable than existing ads.
The news comes hot on the heals of new research into the effectiveness of Facebook advertising. The research suggests that despite rapidly falling click through rates of Facebook ads, there are subliminal benefits associated with having a personalized advert appearing next to a users profile. Tests found that people who saw adverts for brands and products that were matched to their profile were more likely to buy that product at a later date.
The new and larger adverts will roll out across the Facebook network on the 29th February. The adverts can consist of either a post, a picture or a video. The social network is promising brands that purchase the new ads a 16% increase in their 'fan rate'.
Ben Wood, the managing director of iProspect, a large digital marketing agency, thinks Facebook has to tread carefully not to annoy its 800 million members.
“Facebook has to carefully manage that tricky tension between pleasing Wall Street and not commercializing the product so much that it alienates its membership. I also think Facebook could run into trouble if it starts selling adverts based on its users' data away from the site. The rules around cookie laws, especially in the European Union, are getting increasingly difficult.”