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Facebook’s New Premium Ad Units & Reach Generator Tool | Part 2

Facebook’s New Premium Ad Units & Reach Generator Tool | Part 2

You may remember my recent blog post covering Facebook’s New Premium Ad Units, which have been branded “Sponsored Stories”. I’ve discovered that Facebook’s new “Sponsored Stories” will be shifting the emphasis of the actual advertisement. Several marketers have become aggravated by this impending change (and yes, I am undeniably one of them). Considering Facebook is a consumer-facing company, after a few impromptu temper tantrums, these changes have begun to make some sense. Facebook will be promoting these new ads at the top of the page and only within the web and now mobile newsfeeds – making the experience more social and engagement based. The ads will also be more relevant to specific demographics due to the “Reach Generator” which I will talk about a little later.

Now, don’t misunderstand me – I’m not completely gung-ho about these Facebook modifications either, but I’ve begun to accept this forthcoming doom future.

It’s understandable that some of these ads will unquestionably cause user friction, as the only information we currently see in our mobile newsfeeds is our friends’ rants, updates, and uploads. Surely, users will be upset by big business bothering them in their mobile news feeds, although, it’s Facebook’s responsibility to not bombard the user with these ads.

Facebook will also be implementing a user log-out experience. This said, the log-out experience will be filled with highly visual content comprised of photo and video. In addition, according to TechCrunch, the log-out ads will have enormous potential considering 37 million people log out of Facebook every day, totaling to 105 million users a month.

A “Reach Generator” will also be available through Facebook’s premium ads, with an applied fixed fee that will be decided upon the number of fans a Brand page has. The “Reach Generator” will automatically help brands by selecting their peak posts and then intensifying those posts by funneling them through the new ad placements. According to Mike Hoefflinger, Facebook’s Director of Marketing; Ben & Jerry [the brand] was able to reach 98% of fans and received a 3-to-1return on investment by using the Reach Generator tool. Facebook also noted that its examinations have revealed that the newsfeed ads are delivering a 5-10x higher CTR (click-through rate) than current, standard ads. Conversely, Facebook needs to beware not to overwhelm users news feeds with ads as this could have a very negative effect on this new execution.

So, what do you think of Facebook’s new premium ads? Do you think the “Reach Generator” will be as effective as it sounds? Let us know in the comment box below!

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