By Ed Kats | President
Editor’s note: The following is an excerpt of an op-ed that was originally published at AdExchanger.com.
Some marketers love to bash Facebook ads. We saw it in the immediate aftermath of General Motors pulling its $10 million cache of ad buys just days before Facebook’s IPO. We continue to see it as the company’s stock price stumbles.
The truth is, Facebook is finally developing new, exciting ways to deliver real value to online advertisers. It’s time for marketers to recognize that value and get serious about Facebook ads.
In recent weeks, the company has announced a number of prominent changes to its ad platform, including a real-time bidding exchange, mobile-only ads, and a rumored ”want” button that would “only work with content identified as relating to a purchasable product.”
Facebook also has increased its outreach to the advertising industry. Through various public and private campaigns, it is working to educate marketers about its multitude of ad options and addressing their concerns about the need for more precise data and analytics. At the Cannes Lions festival last month, Carolyn Everson, Facebook’s vice president of global marketing solutions, made the rounds touting the social network’s various ad options.
The key to the success of all of Facebook’s new ad options is segmentation. Segmentation gives marketers the ability to analyze and make real-time media buying decisions based on data available through Facebook’s interface. For agencies, segmentation marks another opportunity to optimize, target deeper and increase conversion rates. The segmentation and retargeting opportunities now exist that will enable Facebook ads to be profitable for brands.
Read the full post at AdExchanger.com.
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.