Tuesday, October 06, 2015

Facebook Starts Grading Ads on its Mobile Platform

On Tuesday October 6, 2015, Facebook (FB) announced that it will begin grading ad results on its mobile platform via "Advertising Outcome Scores". Although FB has been grading its ads for a long time -- indeed, Facebook uses its results information to determine ad pricing and placement -- this is the first time that Facebook is sharing its results.

According to Tim Peterson of Adage.com, "the goal is for publishers to use their report cards, called Advertiser Outcome Scores, to improve their ad units' effectiveness by tweaking their location within apps. App developers that don't find a way to improve their scores risk Facebook serving them fewer ads and losing out on revenue."

How will this impact advertisers? Advertisers now know which of their ads are performing well and which need location adjustment. Facebook is incentivizing ad buyers to improve their models. And if they don't? Facebook will likely serve them fewer ads.

Facebook's "Advertising Outcome Scores" should be viewed positively. Facebook is giving advertisers more information so they can improve their ad campaigns. Facebook wants its advertisers to learn from past experiences and optimize going forward. When FB advertisers make more money, FB makes more money.


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