Facebook Using Rotating Ads On Static Pages, That Means CPMs Just Changed A Bit

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Facebook Using Rotating Ads On Static Pages, That Means CPMs Just Changed A Bit:

Facebook is changing the way it serves ads.  Notice how ads change on your Facebook page on the sidebar without you leaving the page?  That’s because Facebook is using a dynamic approach to ad serving that rotates ads while the user stays on the page.  This could be a nightmare for advertisers looking to calculate possible CPMs (cost per impressions).

Facebook’s goal is to change how ads rotate to improve the relevancy of what is shown to a user.  Facebook should have tons of information about users by now and some question whether this is just an opportunity to serve more ads to get money for them as opposed to improving user experience.  If it was up to most users, they would prefer no ads or few at all.  So if a user stays on a page but the ad changes, does that count as an impression?  The good news is Facebook, like Google only charges when a user clicks on an ad which takes them to a “like” page or an external website.  CPM calculations are not really a problem but could make it more difficult for advertisers to optimize.

Facebook is also testing ways to increase the number of ads it shows from 7 to 10.  This will allow more advertismentss to be shown on news feeds and timelines but below the fold ads are less likely to get clicks as users in the action of scrolling take less heed to them.  We expect Facebook to continue testing new ways to help advertisers market new products while trying to keep the user experience robust.  A drop off in user growth would be a big problem for the social media site as mobile advertising is still somewhat of a problem.  Facebook’s only option is to go heavy with ads and they may have keep a fine balance so as not to turn off users.

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