M80 CEO Predicts Brands Will Boost Facebook Ad Spend

  |  June 26, 2012   |  Comments

Todd Steinman also worries about Facebook mobile ad clutter.

Facebook has aggressively promoted a stream of ad product related changes since the firm's IPO flopped, heightening worries that it won’t generate the amount of ad revenue the market expects. The moves have spurred mixed responses from investors, but the CEO of WPP-owned social marketing firm M80 thinks they'll result in a rise in overall brand spending on Facebook.

In a recent post on the WPP Reading Room site, M80 CEO Todd Steinman discussed recent Facebook ad innovations and their potential impact on digital marketers.

He predicted brands will spend more on Facebook as a result of additional self-serve ad options. "Until now, Newsfeed inventory had been available at premium rates through Facebook's sales reps. Unlike buying media through an insertion order, auction-based pricing doesn't allow for reach guarantees. While some brands will have a problem with the lack of guaranteed reach, we anticipate overall spend per brand to increase, especially among brands familiar with SEM and other auction style pricing."

He suggested self-serve ad options will require additional ad management by brands, and indicated that Facebook's mobile focus could lead to inventory problems.

"It is important to target specifically for mobile through social as mobile audiences have different behaviors, usage patterns and needs. Geo-targeted offers and mobile apps are two types of objects that will likely use this segment exclusively," wrote Steinman.

While he seemed to agree Facebook's new mobile focus is necessary, Steinman had two concerns:

1. Since Facebook's mobile ads only exist in the Newsfeed, there is a possibility Facebook will increase supply and run the risk of cluttering the user experience. 2. If Facebook limits supply, mobile Newsfeed ads could become costly to advertisers.

Steinman also laid out ad offerings on Facebook that are not available through ad sales reps or the site's main self-serve ad platform. "Instead of one-size-fits-all, now almost every slice of Facebook's media inventory will be decoupled and offered à la carte through self-serve auction. For advertisers, this creates new targeting efficiencies and should improve ROI results across the board," wrote Steinman.

He suggested that additional ad targeting capabilities will require new strategies for marketers. "Brands will need help developing and understanding each different segment for these categories: Fans, Rest of Network, Right-hand Side, Mobile, Friends of Fans, Newsfeed and Desktop."

Tags:

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

ClickZ News Staff

Articles written by ClickZ's news staff.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

    Information currently unavailable

Jobs

    • Online Marketing Coordinator
      Online Marketing Coordinator (NewMarket Health) - BaltimoreWant to learn marketing from the best minds in the business? NewMarket Health, a subsidiary...
    • Call Center Manager
      Call Center Manager (Common Sense Publishing) - Delray BeachWanted: Dynamic Call Center Manager with a Proven Track Record of Improving Response...
    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...