Facebook’s approach to monetising its active user base might be irking those consumers actually using the social network, but technology providers are full of praise for the wealth of new options it is giving advertisers.
PerformanceIN spoke with chief executive officer of Adquant, Joe McCormack, about these new options, how they compare to regular display and his opinion on Facebook's revenue-generating strategy.
Israel-based, Adquant, recently rebranded from Adotomi. The thinking behind the name change was to combine advertising, the core of the company’s business, with the quantifiable results it achieves through channels such as Facebook.
How would you rate Facebook's current range of advertising products?
Joe McCormack: Facebook’s current range of advertising products is complex and comprehensive. They provide an option for everyone with newsfeed ads, sponsored stories, and mobile app installs. However, with over 20 different options, the issue is finding the perfect format. To help address this problem, Facebook will be working to simplify their offerings this year.
Would you say Facebook advertising, because of its inventory, is becoming even more important than display now?
JM: Yes, Facebook advertising is becoming more important than display, primarily because of the targeting options. Facebook is offering precise audience targeting that no display channel can match. Targeted advertisements, directed at specific audiences, results in enhanced delivery of messages and higher quality than display.
What impact has Graph Search had on Facebook advertising?
JM: So far, the impact has been small due to the novelty of Graph Search, which was just rolled out earlier this year. Currently, the ability to advertise within Graph Search results is not available, but the potential for Graph Search is massive as it uses natural-language processing, providing a major advantage, especially for local searches.
Why Will Video Advertising be so Important on Facebook?
JM: Facebook advertisements have always been based on audience targeting, which has been the mainstay of TV. Now, Facebook is offering a format that can compete with TV, only with more precise targeting. TV advertisements still make up the majority of advertising dollars in the US, however, if Facebook can yield a small fraction of that, they will be a big success.
Do you think Facebook Could Offer In-image Advertising Like that of Kiosked and Roombeats?
JM: It would be very difficult due to privacy concerns. Last year, the policy change with Instagram proved that Facebook users are very concerned about their privacy and content. Facebook is for sharing content not monetising it.
Was Facebook's Latest and Upcoming Innovations Behind Your Decision to Rebrand From Adotomi to Adquant?
JM: Since Q4 of last year we have really seen the quality of Facebook advertising take off, primarily due to Facebook’s innovations. Facebook has put together a great team that is helping move Facebook advertising in the right direction. Re-branding to Adquant allows us to focus on the technology side, where we feel there is a lot of work to be done and no single solution, existing today, that is truly excelling.
Where do you Think Facebook Might Venture Next in Terms of Advertising?
JM: Mobile ads have been a huge, and surprising, success for Facebook, and we expect to see further developments with their mobile offering. We also expect to see some form of advertising format for Graph Search soon, which could give Google a run for its money. As Facebook continues to innovate, their advertising offerings will be simplified, reducing the number of formats available, making it easier to run campaigns.