How Facebook’s “Premium” Ads Are Getting Better

How Facebook’s “Premium” Ads Are Getting BetterFeburary 29th was a busy day for Facebook. Not only did the social behemoth release Timeline for Brand Pages, but the company announced that “premium” ads would be overhauled too. Right way, marketers began to worry — How will this impact click-through rates, reach, and most importantly, ROI?

After two months of beta testing with brands like Dr. Pepper, Butterfinger, and Electronic Arts, Facebook announced that these new premium ads have been creating 5 to 10 times more click-throughs and have been tripling ROI in comparison to previous ad formats.

Moreover, premium ad buyers can now pay Facebook for guaranteed news feed distribution to up to 75% of its fans. Facebook reported that test partner Ben & Jerry’s was able to reach 98% of its Page’s fans using this new featured called Reach Generator.

The theory behind this success is two-fold: First, Facebook is adding premium ads to more locations than ever before. In addition to placement in the “ticker feed” on the right and the main news feeds, premium ads will also be placed on the log-in screen, which receives 37 millions views a day. Premium ads will also be available on mobile devices for the first time, meaning ads will now feature in the news feed for users on the go.

The second reason for success is simple: Like we discussed a couple weeks ago with Verizon, people are influenced by what their friends recommend. Users are more likely to consider buying an item if they see that their friends have “liked” it, so it’s very important that brands highlight this information in ticker feed and news feed.

Indeed, it’s been a busy couple of weeks for Facebook and digital marketers too. It can be tricky to keep up with Facebook’s latest features, but in this case, it is worth considering how premium ads could benefit your business.

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