Tuesday 26 August 2008

Facebook's new ad format

Latest news from the Facebook camp is that they are trialling a new advertising format called ‘engagement ads,’ dovetailing off three of the network’s common user features, ‘commenting,’ becoming a ‘fan’ and giving ‘gifts.’

Dubbed an ‘engagement ad,’ Facebook is hoping that these ads will prove to be more interactive for users than those in the standard format. The idea is that advertisers will become part of the community, interacting with users in the same way users interact with each other.

Engagement ads can be broken down into 3 categories:

Comments:
For example if a new movie is advertised, users will be able to comment in the space beneath the video, and when the ad is then served to the user’s friends, they can see the comment and add to it; also their news feed will show that their friend has commented on the ad.

Fan:
While it’s nothing new to be able to visit a brand page and become a fan, this simply allows the brand to go out across Facebook in order to draw in fans.

Gifts:
Facebook is differentiating between offering standard gifts (such as a teddy bear) and those created by advertisers. The ad-created gifts will only be distributed through the engagement ad format and will be charged on a CPM basis, plus additional fees for the level of targeting required by the advertiser.

Our initial reaction is a positive one, especially to the ‘comments’ option, as we see advertisers and publishers working harder to deliver relevant advertising to the target audience and encouraging user interaction. It will be interesting to see how advertisers choose to incentivise users to leave comments, thereby personalising future impressions.

Initial beta tests are being carried out with a select number of advertisers during September so we’ll keep an eye out for timing and development updates.

- Sam

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