8 March 2016

Facebook says only native and video ads deliver significant value

In a recent blog post Facebook's Dave Jakubowski, Head of Ad Tech, has gone on the record to say that exchanges and banners do not bring much value.

Jakubowski reported that the company has tested "a buying platform" in Atlas, Facebook's people-based ad serving and measurement solution. The test, which occurred last year, led to two major takeaways: 

Ads were delivered to real people "with unprecedented accuracy", but came up against many bad ads and fraud (like bots). "While we were fortunately able to root out the bad actors and only buy quality ads, we were amazed by the volume of valueless inventory," he said.
Only two ad formats delivered significant value: native and video.

The test results triggered Facebook to analyse the ads that came through LiveRail, a Facebook company described as a monetisation platform for publishers, broadcasters, and mobile app developers. "...We immediately shut off the low quality ads. In fact, we removed over 75% of the volume coming from our exchange by turning off publishers circulating bad inventory into LiveRail," Jakubowski shared. "We knew that in good conscience, we couldn’t sell what Atlas and our people-based measurement told us was valueless."

Source: Atlas Solutions blog. Infographic showing how Atlas can close the loop between offline and online advertising.
Source: Atlas Solutions blog.

Atlas is focused on helping marketers deliver and measure true business value, Jakubowski said, in native, video and up-and-coming mobile advertising, particularly with several product updates.

Offline Actions ties offline sales to online ad spend, enabling digital investments to take credit as deserved. "Advertisers who measure their ads with Atlas can now upload their point-of-sale (POS) data and understand within minutes if their online ads are influencing offline purchases," Jakubowski said.

Path to Conversion, now available, provides insight into the ways people see ads across multiple devices before making a conversion. While other such solutions rely on cookies, Atlas is based on data from people.

Video Ad Serving will also be broadly available by the end of March.


Read the Facebook success story (PDF) about KLM, which achieved 24% more conversions using Atlas’ people-based measurement instead of cookies alone. While 5% of campaign conversions happened on mobile, similar to most retailers, Atlas identified at least one mobile ad which factored in 25% of all digital purchase paths

Read MINI's Facebook success story (PDF), in which the automaker and its Australian digital agency MobeSeek used Atlas to discover that 30% of all conversion journeys started on desktop but converted on mobile