Facebook is becoming one of the largest ad platforms online just like Google’s Adwords. Its most recent feature is going to make advertisers and marketers on Facebook rather happy. Ad slots on Facebook were usually deemed scarce and expensive. But not anymore.
Facebook will now tell advertisers relevant their ads are. Sort of like Google ad tracking tools, advertisers can now monitor how well their ads are doing on Facebook and tweak ads to perform more effectively. And the best part? The greater your ad performance is, the lower its going to cost you.
Better ad performance is going to lower costs for advertisers on Facebook
Now Facebook will rank an ad from a scale of 1 to 10, with 10 meaning that the ad is perfectly suitable and is performing well for its target audience.
As to how Facebook is going to measure how an ad is relevant, the social network will monitor the positive and negative actions that the audience is taking with the ad. For example, if the audience shares it, clicks it and the number of video playbacks it has, then the ad is deemed to be successful and relevant. Similarly if the audience mark the ad as spam, well then that just about explains it.
Facebook’s ad relevance features will kick in after it has been served 500 times, providing ample opportunity and data to correctly identify its usefulness for the advertiser and the audience.
Ad relevance features will start only after the ad has been served 500 times
For the past two years, Facebook’s average ad price has registered an uptick whilst at the same time the number of ads its serves has dropped. In the fourth quarter alone of 2014, the average price per ad on Facebook increased by 335% and the total ads served fell by 65%.
In light of this, Facebook wanted to overhaul the model it uses to serve ads. Just because an ad costs more doesn’t automatically qualify it to be a good ad. Facebook doesn’t want monetary value alone to determine which ads get top billing.
If it serves relevant ads to the target audience, then Facebook can retain its goodwill and its user base. Transparency is what Facebook is striving for. And the relevance score for ads is one of the most significant steps the social media giant is taking in that direction.