UPDATED 15:00 EDT / MARCH 01 2012

Facebook’s New Premium Ads and Its Impact on Advertisers

Shortly before the planned IPO that will boost the world’s largest social network, Facebook is targeting investors with their new ad offerings. Facebook, for the first time, is allowing advertising on mobile devices.

Facebook launches “Premium” and “Offers,” two advertising systems designed to increase the appeal of social networks in the eyes of investors. The new advertising service will provide new features to all companies wishing to advertise through social network.

The new ads are the messages from Facebook pages that will appear on the homepage of users. The two services were presented at the Facebook Marketing Conference (FMC) at the Museum of Natural History in New York on Wednesday.

SiliconAngle Founder John Furrier covered the details story of the event and the new features of the Facebook Page Timeline and Premium Ads. Let’s look at some of the important updates on Facebook that the company launched for advertisers.

Facebook Premium and Timeline

Premium is designed to provide greater visibility to those companies who are not satisfied with relegated banner ads that usually appear on the right column of the social network. From today, they can buy a chance to advertise within the news feeds on mobile devices, as well as occupy the logout page.

One feature that many investors already have passionate about, but not particularly appreciated by users, is to read ads in the news feed of your contacts.

Premium seems to be designed specifically for the timeline. The Timeline, in fact, allows you to display advertising at large, so that they cannot escape the gaze nor even distracted from the unsuspecting user. The aim of the timeline is to monetizing the attention and multiplies opportunities for the millions of page views from the social network every single day.

Brands will quickly organize your Facebook page for campaigns, when the Timeline becomes mandatory by 30th March. Timeline pages will have large main picture through which user can send messages directly to brands.  Sites are also customized for users to see the brand on the wall and how their buddies are committed to the brand.

The picture in the Timeline has some limitation as set by Facebook:

  • It does not contain pricing information, or invitation to purchase, such as “up to 50% off” or “Download the discount coupon from website”.
  • Figure shouldn’t include contact information such as email or web address.
  • The photo must not contain references to other Facebook features.
  • Photo shouldn’t have prompted, for example, “Refer friends”.
  • In general, the image must not be misleading or offensive and the brand must have the copyright to publish their image.

An essential new feature is the Insights Page of the new visitor information that allows brands to optimize their updates. This feature measures how interest by looking at Facebook users’ interactions with messages from seven-day measurement period.

Facebook Offers

Facebook also announced its new Offers feature, through which companies and brands can share discounts or promotions to members so that they can take advantage of low purchase prices. Offers are displayed either on the users news feed, or as sponsored stories. Users can redeem offers on an e-mail or on their mobile device.

Reach Generator

Another new product is the Reach Generator, which allows a brand to make sure that everything you publish is on the homepage. An important and major change is that all future commercial messages linking to the user or their friends.

Reach Generator lets you pay cash to guarantee that your Posts get to at least 75 percent of your fans each month. Reach Generator is initially only available for certain brands and Facebook is launching it to all later on.

New Features- New Ways to Generate and Attract Users and Revenues

Until now, mobile advertising through Facebook raises virtually no money. The new design makes it possible for companies and organizations to work more areas of Facebook’s extended network, and using the timeline feature, companies can include marketing with storytelling.

Another change in the latest Facebook update is that corporate status updates can be more easily lifted out directly in the ads. It allows advertisers to act more quickly when things happen in other countries that have influence on the company.

Facebook believes that companies perform better in a connected world.  With 800 million users connecting with their friends, deeper analysis and customization will be key towards monetizing their platform moving forward.

Facebook, in fact, is close to launch its IPO and the goal is to raise at least $5 billion in shares. By providing a highly efficient advertising system for businesses, Facebook is hoping that they also become loyal a partner for marketers, financing the ride set by Mark Zuckerberg to the stock market.


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