Facebook rolls out ad products aimed at drawing TV ad budgets to mobile devices

By Jim O'Neill on Sep 28 2015 at 6:15 AM
Facebook rolls out ad products aimed at drawing TV ad budgets to mobile devices

Facebook, looking to leverage its strong ties with Millennials using mobile devices, Sunday introduced a quad-play of new advertising products that it hopes will convince brands spending on TV ads to move some of that cash to the social media site.

The company said its new total rating point (TRP) buying would enable advertisers to plan a campaign across TV and Facebook with a total TRP target in mind, buying a share of those TRPs directly with Facebook. Facebook said Nielsen’s Digital Ad Ratings measurement system will verify Facebook’s in-target TRP delivery, and Nielsen’s Total Ad Ratings system can verify the TRP delivery for Facebook and television combined.

Also on tap, a new “brand awareness optimization bidding” product that it says will help brands “find the audience most likely to recall their ads.” The product will see a limited release in October, with a broader rollout planned through the year.

Facebook also said its mobile polling on Facebook will be expanded to include Instagram, both targeted at enabling brands to measure campaign effectiveness .

Finally, the company also said it would expand its carousel format to include video, a strategy it says will help brand tell a more compelling brand story. That’s scheduled to roll out this week.

"We want to be the single-most important platform for all businesses," said Carolyn Everson, Facebook vice president for global marketing solutions.

The social media site now has some 2.5 million active advertisers in total, up 25% since February.

Facebook already is the world's most popular smartphone app, and already has major ad revenues from mobile devices. In fact, the company says more than 75% of its ad revenues in 2014 were from mobile devices.

The company has an estimated 1.5 billion users, and videos on the site generate more than 4 billion views a day, about half of them on mobile devices.

Mobile video ad spend has been growing steadily, but still makes up just a fraction of total ad spend, about 8% compared to 41% for TV in the U.S., a disparity that Mary Meeker, in her State of the Internet Report, said represents a $25 billion opportunity for mobile.

eMarketer forecasts digital video spend will increase about 13% to nearly $15 billion, while TV advertising is expected to be, essentially, flat, growing just 2% to $78 billion.

Stay tuned.

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