Facebook to launch upgraded ad product
Facebook files for $5 billion IPO
Facebook will release a new, upgraded ad product on February 29, the company has confirmed to Direct Marketing News. The social network is expected to introduce these new ad products at the fMC event for marketers.
According to a leaked presentation posted on Scribd by Peter Corbett of ad agency iStrategyLabs and later obtained by technology website GigaOm as well as numerous other media reports, the upgraded Premium Ads will allow brands to originate their Facebook ads from the company page, enabling a larger-format and more prominent placement of "likes" and comments.
"All of our premium ad units that point onsite will be associated with a page post on Facebook," said a Facebook spokesperson via email. "Advertisers will also continue to be able to point ads offsite. This means that we no longer have 'engagement ads' but since premium ads offer the same functionality that stems from a page there is no change in features. Marketplace ads purchased through the self-service tool are not affected by this change."
According to the leaked documents, the social media giant anticipates a 40% increase in engagement for its more than 800 million users, and 80% increase in the likelihood an ad will be remembered. The presentation also predicts the new format will drive up fan rate by 16% and lead to “significant increases in purchase intent."
If a Facebook user's friends are fans of a brand's page, the ad will automatically expand to show that information. Individuals will also be able to "like" or comment directly on the ad.
Facebook is offering six different Upgraded Premium ad types: photo, video, event, link, question or status. The Classic Premium ads, including video comment, poll and event formats, will be phased out beginning Feb. 29.