The way in which ads are being displayed will not be changed from this. However, the options that the marketers can choose from will be. Before the change there were 27 different ad units, but after the change they plan to reduce that to 6 or 7.
Apparently, it has been a common struggle among marketers to choose between the 27 options. Personally, I can attest, because sometimes so many options are a pain, because it just causes unneeded stress.
Facebook is the number one social network and they are seeking to revive revenue growth. By most, this seems greedy seeing as they are already so high, but there is always room to get better and Facebook is simply doing that.
The changes will be rolling out as the next weeks and months go by. Facebook says that the prices will not be affected by the change, which leads us to the question: how do they plan to increase revenue then? They would not comment on this, which urges us to wonder what their plan is.
Advertising accounts for 85% of all Facebook revenue. They want to boost this revenue area back up after last year having a sharp slowdown.
With Facebook usage on smartphones being the rise, Facebook has frequently been rolling out changes that will allow ads to be formatted to the mobile site. Facebook has also allowed marketers to show ads based on the users web browsing history. They have also introduced marketers to new tools that allow marketers to measure ad effectiveness. This is a fantastic addition to advertisers. This will allow them to not waste money by playing an ad that isn’t welcomed among users.
Facebook is expected to begin placing video ads on their site later this year. However, they haven’t released much information in it as of now.
For now, they seem to be trying to put out these changes to marketers that will change their options.
They must be quite optimistic about them if they expect it to revive their revenue once again.