Facebook Meta Platforms is reportedly in the early stages of Basic Ads product design. Basic ads would be aimed at advertisers who want to raise awareness about their brands.
What are basic ads?
Basic Ads would offer and report only the simplest metrics, such as activity and video views.
With the release of iOS14 in 2020 and the option for users to opt out of collecting their data, advertisers on Facebook are finding it harder to report on performance.
Since Meta has not officially announced the new product, there is little talk about it in the advertising community. But a Facebook veteran Curt Maly from Social Media Black Boxfamiliar with Meta’s plans, said it was interesting to think about how he would benefit from the base product without targeting and goals.
“More than 90% of all online marketers I know are focused on direct response, where it is possible to directly track efforts … with this basic ad platform, tracking seems to be quite difficult,” Maly said. “The sign and awareness is used by larger companies with deeper pockets, most small businesses can’t compete with a brand that spends money on ‘knowledge’, small business owners need / want to achieve results now.”
He added that brand new online advertisers and vets are posting on Facebook to see fast targeting results, conversion goals and tracking results.
“If these three main target lines move, I think we’ll see a lot more people clinging to Google / YouTube ads, TikTok ads, and Apple’s new advertising platform,” Maly said. “I don’t think Apple has updated iOS to ‘help protect users.’ Apple collects all the data they block on Facebook, Apple will re-engage in the game advertising platform and this is another reason people are flocking to better advertising platform. “
Changes in privacy affect meta revenues
Meta estimates that their revenue will reach $ 12.8 billion in 2022 due to Apple’s changes. Meta CEO Mark Zuckerberg also reports on an “unprecedented level of competition” from new platforms such as TikTok.
In April, Meta set up a three-step plan to save its advertising business after Apple’s privacy crackdown. At the time, Meta CEO Sheryl Sandberg described the strategy as “doing more with less data”.
Facebook declined to comment on the new product. However, there has not yet been a release date for the launch Business Insider reports that testing will begin in the EU before the US
What this could mean for advertisers
The Facebook advertising platform was previously known for its wide range of target audiences and demographic options. Lately, many advertisers and businesses seem to be moving away from the platform and reporting declining performance.
Basic ads could be a good alternative if they can comply with GDPR regulations, while providing useful targeting options.
Basic ads can work well for household names like Nike or Netflix that target engagement and awareness. But smaller businesses that rely on more precise targeting and potential building, such as courses for business owners or signing up for youth football camps, may have harder times and may abandon Facebook forever.
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