As Facebook users move into stories, advertisers seek to continue
As Facebook users move into stories, advertisers seek to continue
Ad sales will slow, at least temporarily, CEO Mark Zuckerberg acknowledged this week, as advertisers follow users by moving to the new Stories of the network format from their news source.
Mr. Zuckerberg said he is sure that Facebook can overcome the transition, but marketers have a new learning curve to scale quickly if they want to stay close to consumers.
"Because the way people consume stories is very different from the way they consume Feed content, everything from the creative strategy to the story they want to tell and the physical form in which they film the asset is different" said Kerry Perse, managing Social Network Director at the Omnicom OMD media agency.
More than a billion stories (montages of photos or videos that disappear after 24 hours) are shared daily on Facebook, Instagram and WhatsApp, Facebook said in its third quarter earnings announcement on Tuesday. "All the trends we have seen suggest that in the not too distant future, people will share more stories in Stories than in Sources," Mr. Zuckerberg said in the call.
The launch of Facebook for ads in Stories is not just about the popularity of the format. The ads in Stories attract attention because they occupy the entire screen of the phone, offering advertisers a large interactive canvas for their photos and videos, buyers say.
The other side is an ad format that is not common outside of Snapchat, which was a pioneer in the Stories format.
"The first thing you have to push back in production meetings" is to publish ads vertically, to suit the way users hold their mobile phones, said Mark Sytsma, associate director of Social Pay in Huge, an advertising agency. digital advertising
There are other considerations particular to the ads of Stories, such as the need to create photos and videos that instantly attract the attention of users and prevent them from touching the screen to jump forward. "You are at the mercy of a user's thumb clicking on the story very quickly," said Wesley MacLaggan, senior vice president of marketing at
An ad management platform.
Facebook declined to comment for this article, noting executive comments about the call for profits and elsewhere.
The more time users spend interacting with Stories, the more opportunities there are for Facebook to post ads. However, the demand for new formats by advertisers may delay user participation, as they try to figure out how to get the best results, which can initially lead to lower prices in the auction-based ad environment.
The cost of 1,000 user impressions in the Facebook Stories, which were only distributed globally for all advertisers in September, is around $ 4, compared to $ 5 in the news service, according to the marketing technology company 4C Insights.
The Instagram experience, where the Stories came before, suggests that the advertising price of the Facebook Stories will eventually catch up to feed ads. The CPM (advertising language for the cost per thousand impressions of ads) for an Instagram ad in any of the Stories or the feed was approximately $ 4 in the last month, said a spokeswoman for 4C.
According to Mr. Sytsma de Huge, according to Mr. Sytsma de Huge, CPMs on Instagram Stories can reach a range of $ 20.
And the spending of Marin Software's customers on Instagram Stories grew to 25% of their spend on Instagram in the third quarter of this year compared to 8% the previous year, MacLaggan said.
The percentage of spending on Facebook directed to Facebook stories is still a "fraction of a percentage," he said.
To help bridge the gap between consumers and advertisers, Facebook is offering customers the so-called Stories School educational sessions for vendors and their agencies.
The Facebook Ad Manager tool can also benefit from Long Term Stories ads. It allows marketers to buy inventories of their products, including the main application, Instagram and its audience network, which publishes ads on applications and external websites. Buyers can check boxes to send their creative work through the complete Facebook portfolio, without having to buy each one separately. As the Stories ad format continues to gain popularity on Instagram, the Ad Manager tool can encourage more buyers to buy Stories ads on other Facebook platforms.
Even so, the news service will not disappear, with 1.5 billion users entering Facebook every day.
For some customers, Stories ads are generating more engagement, such as bypassing to learn more about a product, than ads at the source, according to Courtney Blount, group director of MDC Partners' media planning and purchasing agency. , Media Kitchen. But food still offers the possibility of reaching more people.
"We continue to use both and keep both in our mix," Blount said.
Write to Lara O'Reilly in lara.o'reilly@wsj.com
Corrections and Amplifications
More than 1 billion stories are shared daily on Facebook. An earlier version of this article incorrectly stated that one billion users share stories daily.
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