Native advertising, the most used web advertising method in which brand advertisers are more focused on placing ads in context with a user’s experience, to grab more attention or higher engagement, is widely used on Facebook Inc. (NASDAQ:FB) platform. The NewsFeed is increasingly occupying the vehicular position for displaying native ads on one of the largest social media sites, with a 1.189 billion user-base. Facebook had launched news feed ads in 2012, as it was the most engaging area (compared to side bar ads) on Facebook by users, and likely to drive better engagement rate.
Ad Spending On NewsFeed Ads Increased By 140% In Q3, 2013!
Facebook users are usually more engaged with their news feeds, they often click on ads or informative links which keep flowing through their news feeds on the desktop or the mobile platform. Users prefer interacting with those brand ads that are embedded smartly with good quality images, videos, infographics and a lot more. Advertisers have increased their news feed ad spent by 140% in Q3 of 2013 compared to Q2. 
The NewsFeed on an average drives 44X more engagement than the right hand side ads, users often tend to ignore ads on the right hand side bar and pay more attention to the overflowing, informative and entertaining content in their news feeds. Hence, they are more engaging and drive about 5X higher conversion rates than right hand side ads. If we analyze the graph above, we can observe that NewsFeed ads are 67% lower in CPC or cost-per-click and about 64% lower in CPA/ cost-per-acquisition than right-hand-side ads. As a result, they are widely used by advertisers due to better results and lower investment. 
Cost per acquisition refers to an advertising format in which the brand advertisers are charged only if the customer engage with NewsFeed ads. This format of ads has proven to be more economical and more engaging. Advertisers must focus on designing lucrative, customized ads with images, videos, hashtags and links to brand websites. Users are more active on ads with rich media content and they often visit a website if they find the post attractive.
“The NewsFeed has become an increasingly essential part of our Facebook advertising strategy. Using Unpublished Page post ads, we’ve been able to achieve Search-like performance on Facebook and will continue to expand our strategy in 2014.” said Samantha Puma, Partner & Affiliate Network Officer, Open Universities.
Advertisers Must Focus On Allotting A Major Share Of Investment On NewsFeed Ads!
Advertisers must try allocating a major share of marketing budget for NewsFeed ads due to their overwhelming returns. Especially, on mobile Facebook, users are highly active with brand ads in their news feeds. According to shareaholic, Facebook’s mobile referral traffic rate to brand websites increased by whopping 253% in the last one year. This figure is bound to increase, as more than 874 million (and growing) monthly active users of Facebook browse through mobile devices.
NewsFeed ad performance is quietly variant when compared to right hand side ads or app ads, hence, it must be measured separately and Facebook’s detailed ad performance insight report must be analyzed well for checking conversions/sales. Unpublished page posts, also known as Dark Posts, and published posts must be utilized effectively and targeted to desired audience groups for particular locations, sex, age group and interest areas. Clubbing specific ad options of Facebook along with news feed ads (unpublished and published ads) on desktop and mobile platform can drive effective returns to advertisers. Mobile ads are known to drive 59% of shopping traffic to retail websites.
Source: Marinsoftware
