Los Angeles -- In the wake of its discouraging initial public offering last month and amid concerns over its advertising business, Facebook Inc. is making it easier for advertisers to cater the growing ranks of users on smartphones and mobile devices. Starting today, the social media giant Facebook is opening up its mobile-only sponsored-story placements to both its self-serve tool Power Editor and to third-party Facebook ad sellers, taking a significant step toward addressing one of investors' most pressing concerns and broadening its appeal to marketers.
In fact, it is another big move for a company that has professed monetizing its massive mobile traffic is among its biggest challenges and whose stock price continues to tumble thanks in part to those fears. Though, this is Facebook's first separate mobile ad unit is a telling move for the company.
“It is basically mobile ads for the masses,” said Simon Mansell, CEO of one such Facebook ad company, TBG Digital. “It now empowers all the rest of the clients that maybe could not afford previous levels to access mobile-ad inventory.”
Since mobile ads became first available in March, mobile-ad inventory was mostly enjoyed by big advertisers buying into premium ad packages, including those new ad placements called reach generator. But from now onwards, if you want to be a mobile-only advertiser, you can do so with Sponsored Stories. Previously, advertisers could not specify exactly where they wanted their Sponsored Stories to appear. Starting today, they can pinpoint exactly where they want their ads to show up.
Facebook now provide five options to advertisers making purchases through the ads API and Power Editor:
All Placements: this option includes right-hand side +News Feed desktop+ News Feed mobile
All Desktop Placements: this option includes right-hand side + News Feed desktop
News Feed (desktop and mobile): this option includes News Feed desktop + News Feed mobile
News Feed Desktop: this option includes News Feed desktop only
News Feed Mobile: this option includes News Feed mobile only
Moving foward, with the new modifications in force, Facebook mobile ads are now open to a much larger pool of advertisers with any size budget, which bring in the majority of its $3.7 billion in annual revenue today.
More so, as you can visualize, this kind of dominance has been oft requested from those who purchase Sponsored Stories, so advertisers have to be happy. And the happiness that comes with the ability to target to just the news feed or just the mobile news feed could entice them to be a little more free with the ad dollars.
Here is what Facebook had to say in a statement:
Facebook is always looking for ways to improve products and has responded to requests from marketers to control the placement of their sponsored stories. As companies are promoting services more frequently on mobile, this option gives them the opportunity to focus on specific placements that will impact them most directly.
Lastly, almost half of Facebook's more than 900 million users access the site via a mobile device. Thus, the more time users spend accessing the social media network through its — until today, ad-free — mobile versions, the more ad revenue Facebook stands to lose.