Has Facebook FINALLY Perfected Its Ad Strategy?
In its quest to develop an advertising strategy that is more lucrative for investors, Facebook (NASDAQ:FB) confirmed today that the company has sunsetted the Reach Generator tool less than seven months after it debuted at the Facebook Marketing Conference in February.
“We are simplifying our offerings for advertisers, who can now achieve reach goals through Promoted Posts, a recently launched product which gives businesses the increased flexibility to hand-select and boost posts in the News Feed,” said a Facebook spokesperson.
Unlike the Reach Generator, which charges advertisers a fixed fee based on the number of fans it has, big brands now have the option to use Promoted Posts, a similar product made available by Facebook to small- and medium-sized advertisers over the summer. This Facebook advertising tool allows advertisers to pay to promote new pages.
While Facebook claimed that Reach-generated advertising posts reached at least 50 percent of the advertiser’s fans weekly and 75 percent monthly, according to Facebook ad partner Optimal, the tool gained poor traction with clients. Reach Generator was available at a fixed price, based on number of fans, which gave advertisers little flexibility in what posts should be promoted to which of their fans. In contrast, Promoted Posts, which matches the scale of the Reach Generator, gives advertisers better targeting, using specific criteria.
The problem with Promoted Posts is that the tool is only available through Facebook’s self-serve ad platform, so an advertiser would have to set its own promoted posts. While ad partners Optimal and TBG Digital, who buy ads on advertisers’ behalf, have created a means to work around this problem, whether Facebook will allow advertisers further options with its Promoted Posts remains to be seen.
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