Just how powerful is Facebook’s News Feed? One of the alpha testers of Facebook Exchange retargeted News Feed ads, Nanigans, said advertising on the site’s primary feature increased return on investment by 197 percent, compared with the right sidebar.
News feed ads
Prior to Facebook and the rise of social media, it was fairly easy to tell the difference between paid, earned, and owned media and advertising. But now, the lines are becoming a bit blurred, according to David Armano, managing director of Edelman Digital Chicago. Armano spoke with a crowd Thursday at the Tahoe Snowcial conference in Nevada, talking about the importance of content, and he also gave people a look behind the all-hands-on-deck approach that Cars.com took with its social media efforts during the Super Bowl.
Facebook is testing a new image size for ads without social context (where users or their friends are connected to the advertising brand). Sister site Inside Facebook reported Monday that ads that lacked social context appeared smaller than ads coming from brands users or their friends have liked.
Marketers are always trying to figure out which kinds of Facebook ads will net the most bang for their buck, and a recent Nanigans study may have the answer. Nanigans discovered that page post ads (located in the news feed) easily outperform marketplace ads, which are featured on the right side of the page. The company found that page post ads in the news feed have click-through rates that are 45 times higher and generate 14 percent better return on investment.
Facebook is constantly tweaking the way users see ads in the news feed, in an effort to figure out the most efficient, yet least obstructive way to show advertisements. Sister site Inside Facebook reported Monday that the social network is rolling out news feed ads for the desktop that are stacked in threes.
Facebook’s announcement that the site is testing ads that will go beyond pages’ fan bases set off a flurry of reaction across the Internet. Many criticized the social network, as previously, only content from pages specifically liked by the user or their friends ended up in their news feeds. Some feel that the ads are OK, since Facebook is a free service. A Facebook spokesperson told AllFacebook that this is a test, and users are able to hide these posts, similar to the process of hiding any other news feed content.