In April, Facebook announced plans to overhaul the right-side column ads. Long-term concerns about engagement and visual quality led to these changes. Facebook is selectively rolling out the new right-side ads with a complete transition occurring August 1st. Here is what you need to know about the new format along with expected impact of the change.
The new ad format results in a number of changes:
These visual changes are expected to impact ad inventory and pricing. Competition should increase for these ad spots with CPM’s increasing in-line. We will have to wait and see the overall pricing effect.
The ads should also be more engaging, resulting in higher click rates. In initial testing, Facebook saw a 3x increase in engagement.
In the meantime – go ahead and prepare your creative for the new right-side ads. As the transition occurs, continue to monitor performance versus newsfeed ads. Previously there was a large difference in cost and engagement between the two ad types. We expect the new ad format to bring performance closer together.