Facebook is developing solutions to make Facebook a better place for advertisers, according to comments by Facebook vp of ads and business platforms Mark Rabkin to Digiday at the Consumer Electronics Show (CES).

Business Insider Intelligence
Facebook ad revenue breakdown

With News Feed maxed out on inventory, Facebook is bullish on video and Stories for its future growth , but the social giant is figuring out exactly how to scale these advertising formats across its family of apps.

At CES this week, Facebook is continuing to educate advertisers about the opportunity presented by two key products: Stories and video.

  • Story ads.To get advertisers on board and ramp up monetization on stories content, Facebook is giving agency and brand creatives training on how to create effective stories ads, according to Ad Age. To ease the path for advertisers, Facebook is planning to allow brands to create stories ads and run them across any of its apps. Because stories are consumed so rapidly, advertisers need to create ads that act on users reactive impulses. Facebook has outlined some key best practices for advertisers, including: clearly communicate a simple message; call out products as early as possible; dont require sound; and incorporate swipe-up functionality with opportunities for users to engage further. Stories ads still monetize less well than News Feed: They generate about 20% less revenue than ads that appear in News Feed, per 4C. But the opportunity for the format is massive, based on itsuser base alone Facebook is the biggest global purveyor of the format, touting more than 1.15 billion Stories users across its family of apps (WhatsApp Status, Instagram Stories, and Facebook and Messenger Stories). And the platform still has yet to roll out ads on WhatsApp, meaning nearly half of that base 450 million users is yet-unserved.
  • Video ads.Facebook is also bullish on video to help it grow ad revenue, as advertisers typically pay more for video ads. Facebook launched its ad breaks program in March 2017, offering mid-roll ads. But some advertisers have apparently avoided pre-roll and mid-roll ads altogether over concerns they weren't able to control where their ads appeared on the site. Over the past year, Facebook has been affording advertisers greater control over where exactly their ads appear. For example, its In-Stream Reserve program limits ads to run across video content from a couple hundred premium publishers and creators.

For the time being, advertisers are still invested in a relationship with Facebook.Even though advertisers are also concerned about issues like privacy, transparency, and brand safety, many still recognize that a pullback hasnt happened because theres no alternative to Facebook. As one agency exec reportedly said of the social giant, Its easy to be principled when theres an alternative.

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