From six ad units, Facebook is now testing seven ads on a single page. The social networking giant started displaying six ads last November. However, it was also the time when their Help Center indicated that only five ad units would appear on a given page. It was updated afterwards, indicating that a maximum of six ads may show on any given page at the same time.
What This Means for Online Marketers
An increase in ad unit means bigger competition for online marketers. Additionally, it will also push other units down to parts of the page that users might not see, reducing their click-through rate. On the other hand, an increase in ad unit means increase in revenue for Facebook.
That’s why online marketers must be concerned on how often their ads will be included in a page. They should note that as Facebook includes more information on a page, the fewer ads can be seen. When a Facebook page is viewed in smaller browser windows, none of the ads will be displayed at all.
Facebook Ads Revenue
Majority of Facebook’s revenue is generated through ads. As reported by eMarketer, an Internet marketing research firm, the social media giant’s ad revenue increased from $738 million in 2009 to approximately $3.8 billion last year. This can be contributed to the number of brands that want to build their online presence through Facebook.
However, the social media giant recently increased its charge on pay-per-click ads. However, they have offered discounts to brands who can keep users inside the network. Facebook Credits is also becoming a revenue stream, as the program brought in an estimated $4.27 billion of income last year.
Why Facebook is Doing This
Last January 24th, Facebook Engineer Paul McDonald posted an official blog informing that Facebook Timeline will roll out to all users soon. The redesigned profile typically has fewer ads, which is why the social media giant is testing more ads on other pages. Furthermore, they’ve also tested their units in horizontal and vertical orientation.
Facebook monetizes from its advertising program. That’s why optimizing the frequency and properly positioning your brand’s ad unit is important. Increasing the number of units that will appear on a particular page indicates that they have enough ad inventories. However, the social media giant must balance its advertising performance and user experience. Otherwise, advertisers might leave their platform for good.