Facebook have announced that they’re rolling out the new ad units on the right hand side this week, and with it we can expect a price hike as there will be less ad spots but more competition for the space.
Facebook have said that in initial testing these newer ad units have been getting significantly better click thru rates, and that the new format is more engaging and will result in better value for money. This is all due to the increased size of the ad and image, with fewer ads now being displayed (so less choice for users, potential increase in clicks on the fewer ads).
Here’s what Facebook had to say on the price hike:
With fewer ads available in the right-hand column, we expect that overall competition for ad space on Facebook will increase. This means that some advertisers may see increased prices at auction. We recognize that this may be an unwelcome development for some businesses, particularly those that count raw impressions as an overall indicator of success for their campaigns. However, it is our belief that the overall value delivered through this more engaging ad format will offset any potential decreases in impressions.
At first glance the move to increasing prices isn’t great news for us as online business owners, but if the result is that we’re getting better click thru’s and are able to convert at the other end then we may end up with a better ROI overall.
I guess only time and testing will tell.
The new ad units are rolling out right now, and if you’re running and FB ads I’d love to hear what effect it’s had on your campaigns, so let us know in the comments.