Digital advertising has long been a battleground for the two giants, Google and Facebook, but this year Facebook appears to have abandoned plans to compete hard with Google's DoubleClick and make a series of changes to advertising technology products.
For nearly half a year, Facebook has shut down SSP platform LiveRail, the advertising platform FBX, and decisively cut it down before the DSP business went ahead. The original ad server "Atlas" was primarily a measurement tool after the transformation.Facebook Audience Network (FAN) is left with a focus.Earlier this year, reports showed that fan's advertising was $1 billion and $3 million a day, based on last year's Q4 results survey.
There is speculation that Facebook has reached a tipping point and must choose whether to use the platform itself as an open buy-to-let platform or a closed-ended media provider. Apparently, Facebook doesn't embrace the former.
Michael Collins, CEO of mobile advertising agency Adelphic, saysFacebook is implementing a media-based strategy, a supply-side strategy, against Google as a help-buying character. Facebook itself is a successful medium.
Facebook pulls out of help-buy-to-play marketInstead of forcing it to open up new businesses, focus on building more controlover, exclusive media inventory.Through the head bidding technology, Facebook can bypass traditional programs and direct advertising channels and embed the SDK in every APP, every instant article, which greatly strengthens its position in the media ecosystem.The industry is also relatively positive about this., think its media-centric strategy is enough to make it a hit in the digital advertising world.
Atlas makes Facebook's ad offering more measurable, and facebook recently launched an Audience Network ad rating pricing system to improve overall ad quality on third-party platforms. All of this supports Facebook's media-centric growth strategy.
Atlas Transformation: Measurement Tools from the Walled Garden
Google DoubleClick isAdvertising services (ad serving)heavyweight players. Building a competition that is enough to match is not an easy task, and Atlas, Facebook's ad serving platform, has never been a rival to DoubleClick.
It is understood that Atla on mobile and video and other creative formats are very lackof, advertising creative delivery is not for advertisers to be sure. Multiple sources have shown that the biggest customers of the at-T-Atlas advertising service have recently used it, but are using it only for measurements.
In addition, according to David Murnick, executive vice president of digital business and technology at Amplifi, amplifi's media investment arm, Japan Telecom's customers are not interested in the heavy lifting of switching technology stacks. He also said that in the past 6-9 months, several customers have been experimenting with Atlas, but they are happy to use Atlas for user population assessments rather than as ad servers.
So Facebook has also repositioned Atlas in line with market advice. After the transformation, Atlas, as a measurement tool, was not the target Google DoubleClick, but as a attribution analysis, measurement and media combination tool, in the same category as Convertro of Google Atrydome and AOL Online.
Atlas is a good thing for the industry by using Atlas to make better attribution and measurements using Facebook's data, which is also a path that permeates Facebook's "walled garden." However, it remains to be seen whether this openness is the product of Atlas as ad server and the cornerstone of more open products.
Atlas's ideal use is for advertisers to use Atlas's label, fine-grained lying ads, and measuring marketing on and off the Facebook platform. According to Murnick, most of the customers who tried Atlas have not reached that stage, but have been tested on a larger scale.
Audience Network: Boosting Facebook Ad Efficiency
Starting in the second quarter of 2016, advertisers can run ads outside of Facebook through Audience Network. In May, Facebook added video ads to Audience Network to expand as many ad types as possible. From the second quarter to the third quarter of 2016, Audience Network ad spending increased 4 percent and CTR increased 37 percent over the same period, far outpacing facebook's original ad click-through rate.
But, like other Audience Networks, there is a lack of visibility in using FAN to serve ads for buyers, advertisers can't guarantee brand safety (Brand Safety) and ensure the quality of the people who click on those ads.Facebook doesn't disclose how many media it has on fan, is flooded with unknown media and mobile apps on Audience Network, and the ad serving environment is more complex and fake traffic issues can't be avoided.
Advertising quality and safety have seriously affected fan penetration, in the majority of advertisers are focused on high-quality traffic, audience environment, some media agencies believe that Audience Network did not improve marketing results, but will weaken the effectiveness of delivery. Jennifer Schaen, vice president of Performics, the effects marketing arm of Yangshi, is skeptical of Audience Network because it doesn't give buyers much transparency or control.
In contrast to Performics, Facebook's marketing partner Nanigans used FAN in the third quarter, says Andrew Waber, manager of media insights. Network is as good as Facebook's native ad inventory, or even surpassing it. FAN is very good at helping mobile app marketers, and case studies have shown that FAN brings higher click-through rates to advertisers and lower marketing costs for individual user installations.
Jennifer Schaen says that if FAN doesn't drive downstream metrics, such as sales metrics, visibility metrics, and login metrics, click-through rates are nothing. There's no point in getting a show and a click. Nanigans also plans to explore in future studies how effective it would be if the downstream indicator FAN was used. In fact, different advertisers have different performance on Audience Network, with Nanigans finding that ad returns for one advertiser through FAN increased by 22 percent, while the other fell 4 percent.
To address advertisers' concerns, Facebook recently revamped Audience Network to give advertisers an idea of how to use them, such as traffic or sales, increase dysonance of the advertiser's media, and get more clicks. After all, the overall ad quality of third-party inventory suppliers is not well grasped, and it is Facebook itself that finally reverses.
Why are Atlas and FAN "survivors"?
The answer is that both Atlas and FAN support Facebook's media-centric strategy and are a weapon to break down the advertising revenue bottleneck. Atlas meets the needs of marketers, measures their spending while proving the value of their advertising. FAN entices marketers to tilt their marketing budgets toward Facebook, even if marketing spending doesn't go to Facebook's O-owned media assets, making Facebook money.
Facebook's platform is nearly saturated, and the growth in the number of registered users is not keeping pace with the growth of advertisers, which means that its growth of more than 50 percent will slow unless it finds new locations and new audiences to push ads. Coupled with the multiple challenges of Snapchat's listing, investors are betting on other internet ads that will eat into Facebook's market share.
While advertising products such as LiveRail and FBX can also be revenue streams, Facebook has chosen to phase out these buyer tools.The ultimate motivation for the decision-making of this series of products is, on the one hand, the sharing of "wealth", the addition of more media resources to their own camp, the establishment of a closed media ecosystem,In the end, in the programal market for the stags, the advertiser's marketing costs, share a bigger piece of cake.