Is There Room For More Ads On Facebook?

By David Cohen 

This may not be what anti-advertising Facebook users want to read, but Head of Measurement and Insights Brad Smallwood believes the social network has plenty of room for more ads.

Smallwood told AdNews that since Facebook uses its algorithm to determine the number of ads it serves to each user, there are more opportunities in the News Feed and the right-hand side of the page, adding:

It definitely varies by target, and the reason it varies by target is that people who consume a lot of impressions look very different. Their tolerance levels are very different than somebody who only checks Facebook once or twice per day. Somebody who is constantly using it just has a different type of expectation.

What I’m really trying to do if I’m only on once or twice is get a lot of information from my friends at that point. They look very different to people who are using it all day long. They’re looking for things to do and engage with. Naturally, you’d expect a different level of engagement there.

Smallwood would not divulge exactly how Facebook determines the number of ads it serves up to users, but he told AdNews:

We are not at the point where that is a significant constraint factor for us. The other thing we constantly monitor is this overall engagement with the News Feed and mobile — if that were to start changing, it would be bad. But we do monitor that, and we do continue to see that go up and up and up on an individual basis.

The last thing we do is we monitor daily the relative interaction rates that we’re seeing for people clicking on ads and how engaged they are with the ads. We constantly monitor what click-through rates are and interaction rates are as a measure of whether we are burning particular users out. All of those measures are very positive and continue to be very positive.

Readers: What are your feelings on the number of Facebook ads you are currently being served?

Image courtesy of Shutterstock.