The advertisements that are located to the right of the news feed on Facebook have long been struggling in a variety of ways. Facebook hasn’t been happy with the amount they are earning from those ads, and most marketers aren’t happy with the performance of the ads either. In an upcoming update, Facebook is clearly trying to change that.
According to Facebook, starting sometime this week the ads on the right side will be much larger and bolder than ever before. The total amount of space that is being taken up by ads won’t go up, however, each individual ad will be bigger. Naturally, this means that the number of ads being shown will have to go down quite significantly.
With fewer ads being shown, it is expected that the competition for those ad spots will go up quite a bit. This will cause the cost per click (CPC) to have to raise as well, due to the laws of supply and demand. Another thing that may very well cause the cost to go up is the fact that these ads will most likely be more effective.
Since they will be much more visible, they will attract more clicks. Given the fact that Facebook ads are very targeted, these clicks will be very valuable to marketers. This will, of course, cause more people to want to use these right side ads, thus increasing demand even further.
Given the fact that many marketers have abandoned those right side ads over the past years, due largely to lack of performance, it is likely that Facebook is also trying to lure these marketers back as well. All of these factors will likely result in exactly what Facebook is looking for, a higher level of profit per inch of ad space. With the right ads, however, it will also benefit marketers in many ways.
