By: Andrew Senesac, Marketing Intern
The Benefits of Facebook Advertising Grow with Native Ads
Native ads are the most recent evolution in digital advertising, placing aesthetically-matching inventory
alongside editorial content. Native advertising is also typically unaffected by ad-block software. Facebook native advertising is not necessarily new, as it is seen as the most prominent social platform, both in terms of users
and digital ad spend.
• Facebook is the most popular social network in the U.S. with 64% of consumers ages 12 and up using the
platform. No other social network comes close.
• Facebook is responsible for 30% of all digital ad revenue and 38% of all mobile ad revenue from last year.
Facebook Ad Update This Year
This year, Facebook has re-done its approach to native advertising on its sites. They now permit publishers to place native ads on their home sites, but with a catch. Native advertising on publisher pages requires a tag from the advertiser. This is a new change that gives Facebook more power in their relationships with publishers.
For Facebook advertisers, there is an immediate benefit in data returns. With tags, advertisers are capable of receiving click data, and gain a better understanding of the success of their ads through metrics like clicks, reach, and cost-per-click.
Cost-per-click data is a key measurement in the market for native ad placement. Native advertising is so successful with its ability to avoid ad-blocking software, that the cost of native inventory is justifiably high.
Now that Facebook has fully embraced native, it can use its grip on social media to extract massive profit from the advertising industry, which, in turn, also now has access into the true pages of publishers, rather than a Facebook page built exclusively for advertisers to get around the old parameters.
Native advertising, camouflaged within editorial, is most certainly the best rendition of digital advertising thus far, for both social media advertisers and consumers. Facebook’s team has taken advantage of the popularity of both their site and native ad network.
An Optimized Native Ad Network
The overall result is an increase in transparency, especially for advertisers. The transparency and information expansion is a huge boost for further understanding how online audiences are reacting to the native ad placements, and how well they are spreading awareness within a demographic. Targeted media, then, such as in-feed videos and sponsored side content, can now be even further impactful because of the information that is used.
Since Facebook reactions were introduced, it is no surprise that Facebook continues to expanded its influence in social media advertising, by furthering its control over the valuable real estate that exists in its news feeds.
SOURCES:
http://www.fool.com/investing/2016/06/26/did-facebook-just-destroy-native-advertising.aspx
http://www.fastcompany.com/3061204/did-facebook-just-deliver-a-crushing-blow-to-native-advertising
Global Social Platforms Report, eMarketer, April 2016.
