New Facebook ads are about to replace classic premium ads (sponsored stories, sponsored likes, etc.) The new upgraded premium ads will originate from Facebook Pages. In other words, advertising on Facebook will take place in the newsfeed and the line between paid, owned, and earned become virtually unrecognizable.
Why is this a big deal? At least two reasons… As a user, ads will be unavoidable because they will be in the feed as opposed to exclusively in the sidebar. As an advertiser, the new Facebook ads work better… Facebook reports better reach, engagement, etc.
Facebook has received recent criticism for failing to produce a “social commerce” environment. The conclusion is that Facebook stores don’t work. Furthermore, Facebook’s ad platform is expensive and doesn’t convert.
To be fair, even many years into Facebook advertising it still isn’t clear what the objective of Facebook ads really are: branding vs direct response or somewhere in-between. The new ad platform will at least help brands increase reach and engagement on Facebook if they choose to pay for the services.
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