Facebook aims to kill banner ads, but will the industry follow?

Facebook backpedaled on its ad-buying business for publishers after the company discovered an overwhelming volume of poor and fraudulent ads. However, banner ads and other 'valueless' ads won't simply disappear from the Web, regardless of Facebook's stance.

During the past few years, Facebook took an up-close-and-personal look at the ad exchange business, and it didn't like what it saw. The company decided to kill a component of Atlas, its ad-serving and measurement platform, that would have let marketers use the social network's targeting features to buy ads on other sites and in mobile apps.

"Facebook's making a bet that only video and native ad units add value, so they won't be party to selling other kinds of inventory on their site or anywhere else," says Susan Bidel, senior analyst at Forrester Research.

The move reinforces the seemingly eminent blight of banner ads, as well as the ongoing rise of native and video ads, which the company sells at a higher rate.

Facebook 'amazed by valueless inventory'

Dave Jakubowski, Facebook's head of advertising technology, wrote in a blog post that the company found a huge amount of bad ads in recent years, and it was "amazed by the volume of valueless inventory." Exchanges and banner ads were the worst offenders, and the only two ad formats that delivered significant value were native and video ads, according to Jakubowski.

More specifically, 75 percent of the ads that originated in Facebook's now-defunct bidding exchange and went into LiveRail, Facebook's video advertising platform, had to be removed because the quality was so low, according to Jakubowski. Facebook also scaled back plans for LiveRail earlier this year when it stopped accepting new customers. Banner ads comprised the bulk of low quality inventory, according to Facebook, but the recent change impacts other ad formats that were to be sold through its ad exchange, as well.

Jakubowski says Facebook simply couldn't continue selling ads that don't drive value for marketers. However, "when Facebook says 'those ads were almost certainly dumped into another low-quality exchange where all of them were most likely purchased,' it's hard not to hear Google in that indictment," says Andrew Frank, a vice president with Gartner.

Facebook solidified its position on banner and other ad configurations during the past few months, but there's no guarantee marketers will follow the company's lead, Bidel says, and Facebook's clear distaste for banner ads may bear little impact on the greater industry.

"If the format were as worthless as Facebook suggests, then it would have been unlikely for the display ad market to have grown to around $7 billion," Frank says. "While we might all hope for a day when junky ads are a thing of the past, I fear they may be a product of human nature. One person's junk ad is another person's ticket to the body they always wanted."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

Ensuring post-crisis success

The COVID-19 pandemic has exposed brands’ CX shortcomings and a lack of customer understanding. Given ongoing disruption, customer needs, wants and expectations are continually changing, also causing customers to behave in different ways. Just look at hoarding toilet paper, staple and canned food, medicinal and cleaning products.

Riccardo Pasto

senior analyst, Forrester

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Sign in