By Ed Kats | President
Facebook made a news splash last week (when doesn’t it, these days?) with its announcement that it will allow marketers to buy sponsored stories on mobile platforms separately from desktop. Responding to growing criticism about the ROI for brands of the social network’s ad platform, particularly in the mobile space, Facebook added an option that many marketers and agencies have long sought.
Among those looking to Facebook to open its ad platform to more targeted opportunities is MediaWhiz President Ed Kats. He spoke with AdExchanger.com recently about why the news is welcomed and how the segmentation it offers will benefit brands — and Facebook.
According to Kats:
As far as breaking out and segmenting, that makes complete sense for Facebook in particular. It’s clear they have a specific need for growth, and today I don’t think they’re monetizing their mobile – whether mobile access or mobile traffic — effectively.
As far as what it means for agencies, it’s just another opportunity for us to segment and target deeper. Facebook has given us some ability, and it’s going to continue to evolve in terms of how we access the inventory. Segmentation is going to be key. They’ve got some great opportunities for us to segment.
They want to be able to show value in return for the advertising dollars agencies are spending. The more we can drill down into … data that’s already available through their interface, that’s going to increase conversion rates.
They have to do this because if you look at the display landscape, their conversion rates aren’t what you would want to see. It might make sense that that’s the case. Consumers are there to interact and have social conversations and not necessarily interact with ads that are displayed. The ability to target better and go deeper will have benefits for both the agencies and the revenue Facebook is hoping to achieve.