Top Digital Advertising Trends Of 2018

Posted March 8, 2018 by Abhishek Pandey @ 5:31 am

Top Digital Advertising Trends Of 2018

As we have already stepped into the year and steadily moving towards the quarter of the year soon, we should now be aware of some digital advertising trends of this year that will more likely to boost the chances of positioning your business in the market. Apart from this, these top digital advertising trends of 2018 will help you to build successful marketing strategies that would help you to grow your business.

Read on to unfold the latest digital advertising trends of 2018 to get updated with the trends that can help you in enhancing your business.

Native Ads

Native ads will continue maintaining its strong position in the digital advertising market. According to the experts, they have predicted that native display ad revenue will be whopping 74% of total display US ad revenue by 2021 which were 56% in 2016. So, it is advisable to keep the numbers in your mind while you set up your ad budget.

Augmented Reality

Augmented Reality

2018 will be the year in which the advertisers and brands would reveal the real power of Augmented Reality (AR). Not similar to Virtual Reality (VR), AR integrates a new online information on top of regular users environment and that too without inventing anything new. This will lead to help you in forecasting your purchases and taking the right decisions. With the help of AR, you can tell how the products can complement your user’s lives.

Mobile Video

Mobile Video

Both advertisers and publishers will get benefited by mobile video as it will act as a revenue generator but with some variations. In the last year, you must have seen the success of live videos streaming on social media channels. The Cisco recent studies say that videos will get around 80% of world’s Internet traffic by 2019. Therefore, do not hesitate to include videos in your marketing plans if you want your business to grow online.

User-generated Content (UGC)

User-generated Content (UGC)

Users are the ones who boost your product visibility on digital, then why to give marketers a control to manage your product for the users. It is suggested to give your product into the hands of influencers who are new trendsetters of the year. Team up with the people who can write some good stuff in form of blogs, or you could ask them to write their own experience of using the product as a review on digital. This will get good traffic on the website and also build up product credibility. One good feedback can change many minds which results in increased sale and purchase from the audiences.


In 2018, the IAB and Google have announced a fight against industry shady players. Ad Experience, Ads.txt., and Abusive experiences are putting their great efforts in making advertising industry and media buying safe and transparent.

Personalized Ad Campaigns

personalized ad campaigns

Nowadays, data-driven personalized ad campaigns have become essentially important. Reaching out to your targeted audiences with the right message and at right time will be significant for advertisers, so any company and platform with high-powered functionality who will maintain hyper-targeted ad campaigns will lead the digital marketing world.

Final Words

After reading top digital advertising trends of 2018, this is clear that advertising business should remain user-conscious, meaningful and last but not the least touching- the most important factor. Among other upcoming trends, marketers emphasize multi-channel advertising, social media ads, voice recognition marketing, the blockchain, sponsored content and virtual reality (yet again). Some of them are more likely to trigger the digital revolution, while the others will no longer be industry buzzwords and turn into essential part of a new reality.


Filed under: Advertising,Company Headlines

Why Is Native Video Advertising Likely To Replace TV Ads?

Posted February 27, 2018 by Abhishek Pandey @ 6:12 am

As internet video continues to grow, television advertising is losing its popularity. With the popularity of YouTube, Netflix etc., youth is no longer interested in watching TV which is influencing advertisers to transfer their budget from TV to digital channels.

In this article, things related to advertising will be discussed and why is native video advertising likely to replace Television. Apart from this, we would also discuss that how can businesses adapt to this improvised way of advertisement in this fast-paced digital age?

Things Can’t Be Overlooked

TV Advertisement is no longer a trend

The stats can’t be overlooked and as per the recent stats, digital influence is much higher than TV ads on the audiences. In other words, we could say that digital popularity is outstripping TV in all aspects. Two years back, in 2016, for the first time, US digital advertising revenues had exceeded to TV advertising revenues. Similarly, in Russia, the same thing happened when the internet advertising outperformed the TV advertising revenues with 41 billions rubles. This proves that the global trend is evident as the share of advertising on digital platforms continues to grow while reducing the popularity of TV.

The Youth is not interested in Traditional TV

The young blood is always after trying out new, creative and fast things. With a great and impactful presence of digital platforms, the youth seems to be losing its interest in TV. As per the survey, the report says that over 67% of youth can’t live without these digital channels, whereas only 36% of consumers noted that TV is a part of their life. Through Advertiser’s point of view, an advertiser will invest their where his audience is present or active and be seeing the native video advertising popularity, he is interested in investing in native advertising than TV advertising.

Promotional of native content is more lucrative

Television is in the last stage of its life and the final nail in its coffin will be hammered by the influencer marketing.Subscribers see native video ads in a positive light, so they react actively to the promo, especially when it looks as natural as possible. With the current level of authors’ technical training and creativity, paid videos are more interesting than their usual content.

As one might expect,  such tools are not just a trend’ they are a glimpse into the future. Traditional advertising is slowly dying and a personalized Internet, along with personalized advertising, is the true future.

A win-win situation for everyone

Advertisers who are reaching a targeted audience for cheaper and getting a bigger return on investment is essentially a dream come true. While for regular consumers, they have removed the need to watch obtrusive ads and instead of view products and services that they might actually want to use via people that they trust is the best of both worlds.


Filed under: Advertising

How Brands Get Benefited With Instagram Stories?

Posted February 21, 2018 by Abhishek Pandey @ 7:06 am

While designing ads, a marketer should always make sure that the ads will catch eyes of their targeted audiences. As we all know that social media plays a vital role in catching eyeballs and ever since Instagram launched Stories in 2016, the feature spread like wildfire. In November 2017, Instagram Stories topped 300 million daily users. Instagram Stories offer social marketers a great opportunity to reach a higher number of people by taking advantage of one of the fastest-growing social networks.

According to the reports, Instagram Stories have encouraged users to stay on the platform for a longer period and visit it more frequently. Users under 25 spend more than 32 minutes per day on Instagram, while those in the older age groups spend more than 24 minutes a day on the Facebook-owned photo- and video-sharing network. As a marketer, you have very less time to show your product or service to the users while making sure that your story covers all that you want to show your targeted audiences. So how would you want them to see in your product? Here is how you can get started:

Take advantage of interactive polls

Last October, Instagram launched a feature that allows users to add interactive polls to their Stories. These polls are a fun, frictionless way to get your audience engaged and hear their thoughts on any and all topics. According to the recent report, influencers and brands alike have seen a boost in Instagram Live and Stories engagement using interactive polls since the feature’s inception. With the help of Instagram Insights, you can track engagement per post or entire feed activity per time period.

Value of Instagram Takeovers

Instagram takeovers are fast, easy and fun ways to grow your following by building a mutually beneficial relationship between you and another influencer for a 24-hour period. It provides a great avenue for expanding your audience. Imagine the possibilities. For your business, you can choose any employee for a “day in the life” story or your partner to swap stories for the day. This will keep your customers to keep coming back to your Stories.

Use Instagram Story Ads

In January 2017, Instagram had launched its Stories ads feature with big brands like Nike, Netflix, and Airbnb. However, it opened the feature for all businesses including small and big by March. When designing your ads, it is important to catch your targeted audiences’ eyes instantly as photo ads last only for 10 seconds, while video ads last for 15 seconds. Therefore, you have to ensure that they get the message in the first few seconds of your ad so that they can decide to take action immediately after. If you are planning to try a photo ad, make sure to use a bright, bold photo with clear branding and simple messaging in order to give a clear message about your brand to the user before the ad runs out.

Instant Take on Insta Stories

Insta Stories are relatively new medium across all social media platforms, so there’s no better time than now to begin capitalizing on all they offer. This year, include some Insta Stories to your social media marketing strategy to get a good boost in the business.

Pinterest Helps eCommerce Business To Grow

Posted February 19, 2018 by Abhishek Pandey @ 6:50 am

Without having to pay for Google or Facebook Ads, if you can drive more traffic to your website it would enhance your business. These days, social media is one of the best ways to drive more traffic to your website without paying high and is a great influencer to influence users with its popularity. There are a plethora of social media platforms available today; however, there are few platforms that help business to grow and increase their brand image without budgeting much on the paid marketing. Except for Facebook and Twitter, Pinterest is one platform that increases your brand name instantly.

In fact, the industries that align with the most popular Pinterest categories, and in turn could benefit the most from Pinterest traffic, are craft and hobby companies, flowers, food, drinks and gifts, and apparel companies. With half of all Millennials in the U.S. and 68% of U.S. women between the ages of 25 and 54 using Pinterest, it’s definitely a social media platform worth investing time in. So read on to explore more of the ways for being Pinterest’s user base.

Keywords Is the KEY In The Visual Search Engine

It’s essential to remember that Pinterest is essentially a visual search engine, and in order to rank higher and appear in people’s searches, you need to use relevant keywords in the image description. Similar to the strategy you use to increase your website ranking, you require keywords to rank on Google, likewise, your images require descriptive keywords within Pinterest as well. “Be smart and strategic while creating pins and using keywords.


Make Boards Based On Your Product Categories

Pinterest users love the organization, they are creating virtual bulletin boards after all. You can appeal to users by keeping your own account neatly structured and create a board for each product category you sell or want to promote. For example, if you sell apparel, you may want to create a board for each type of clothing, such as dresses, skirts, tops, etc. Or create a board for the latest fashion trends, such as midi skirts or metallics. This will allow users who are potential customers for each category to easily follow and share the boards they are most interested in.

Increase Reach Through Group Boards

If you aren’t getting a lot of pins or new followers, perhaps you need to go to where other users are and share your content there, at least until they start coming to you. Group boards are a great place to share your content and get a lot of eyes on it. You simply need to search and request access to group boards that align with your brand. Once you are accepted, you can share your content with large pools of people.

Plant-based wellness blogger Chelsea Williams uses this tactic to increase her reach and has had a lot of success with it. “Although I only have about 500 followers on Pinterest, my account averages over 16,000 monthly views. Pinterest has been a tremendous help; I use group boards to increase visibility,” says Williams.

Schedule Pins At Peak Times

Using third-party platforms to stay on top on your pins and to post at the most beneficial times is another way to increase referral traffic. “Tailwind allows users to schedule pins, similar to Buffer for Twitter, at peak times. This helps users get more eyes on their pinned content. Tailwind provides analytics and access to group boards, also known as Tailwind Tribes,” says Williams.

Allow Users To Buy Your Products Without Leaving The App

In today’s digital business landscape, everyone wants everything accessible and fast. Instant gratification has never been more in demand. That’s why buyable pins are a great option for e-commerce businesses; they allow users to go through the payment process within the platform, making the purchase process seamless and efficient.

Food For Thought

What’s wrong in enhancing your business without paying to Google or any other platform? So, follow the ways that have mentioned in this article to enhance your eCommerce business with the help of Pinterest. Hope this post helps you!

Interesting Ways Through Blockchain Could Transform Digital Marketing

Posted February 15, 2018 by Abhishek Pandey @ 3:11 am

As the world is turning into a digital, so is the digital advertising market is growing rapidly. In 2017, the surprising rise of the cryptocurrencies like Bitcoin was in the trend which keeps coming in the first week of this year. When you hear cryptocurrency, the first thing that comes to mind is blockchain as many millionaires and billionaires have observed that this technology could transform markets instantly as it offers transparency and efficiency to the advertisers.

Most of you know that blockchain is the technology that supports Bitcoin; however, many of you are still don’t know that blockchain has a huge potential to disrupt and resolve issues persist in marketing and advertising sectors. This defines that this tech seems to have a tremendous power to transform digital marketing industry.

Here are some ways through which this technology could change the digital advertising:

Targeting And Engagement

Many advertisers have invested a huge time and efforts on the ad platforms they have worked upon just in finding the right methods and acquiring data that enables them to deliver the right message to the right user and that too at the right time, which results in the action. For instance, BitClave envisions a Consumer Activity Token that a consumer earns by adding their data to the blockchain. When a search is made through BitClave’s decentralized search engine, the businesses that are willing to reach to them will compensate them.

Data Management

Data management is the spine of the digital advertising. From measurement to targeting, the participants who acquire data have an advantage over those who don’t. It’s not at all surprising to know that some participants are looking at the blockchain technology ways that could address data-related issues and challenges. An example to give you a clear idea on it- last year, Comcast had announced that it is developing a Blockchain Insights Platform aiming at improving the efficiency of premium video advertising in order to have a better planning, targeting, execution and measurement on across all the screens.

Fraud Prevention

Ad fraud is one of the most common and the biggest concerns among advertisers. Unfortunately, it is not possible to stamp it out as the digital ad ecosystem has become more complex and opaque in recent years. Although, the major Ad vendors and publishers are after IAB standard Ads.txt which is still not perfect.  Some sellers are tricking publishers to adding them to their Ads.txt files; however, Ads.txt doesn’t tell the type of inventory a particular seller is authorized to sell, which opens the possibility for a vendor. For instance, adChain, a smart contract on the Ethereum blockchain that maintains and stores a record of a publisher domain names that are accredited as a non-fraudulent.

Buying And Selling

The most intriguing part of this application is to use the blockchain to enable publishers and advertisers to buy and sell directly or with fewer intermediaries. It is not required to mention that the blockchain based smart contracts could effectively automate every aspect of the delivery and payments easily.

Food for Thought

As after going through this post you must have understood the ways that could benefit advertisers. Hope you like this post.

Filed under: Advertising,Digital

Mobile Advertising- A Boon in the Market or a Bane?

Posted February 13, 2018 by Abhishek Pandey @ 2:46 am

Mobile advertising is the kind of advertising method which is done using mobile devices as a media. An abrupt increase in the number of mobile users over the recent years has prompted the advertisers to focus more on advertising through mobile phones rather other traditional methods of advertising such as PC or TV. Also, the shift of online activities from computer systems to more convenient handset devices gave a major boost to mobile advertisement. Though, mobile advertising today has a growing global market, it involves its own set of pros and cons. Let’s explore some of these here:

Pros of Mobile Advertisement

Users are connected to their mobile phones nearly every single hour of the day. They receive the message at the very moment it is sent. Despite of it in any mode, the message is received by the user as soon as the mobile device is turned on. Thus, mobile marketing techniques are much instant.

As per the recent statistics, about 90 percent of the text messages are read in 3 minutes after they are being sent to the user. Moreover, branded text messages have a substantial 98 percent open rate. On the other hand, emails are stuck just at 22 percent.

Creating content for the mobile devices, whether it is a video, images or a text, is much simpler and less expensive in comparison to the content for laptops or desktops.

Usually many people keep their mobile phone numbers for a longer period of time, in contrast to their email addresses. This makes the databases that use mobile phone numbers as unique IDs more effective. Also, it is a good way for the mobile marketers to understand and analyze user behavior in a better way. Hence, user response can be tracked instantaneously.

Cons of Mobile Advertisement

The very first disadvantage of mobile marketing lies in the fact that it intrudes into the privacy of the users. Thus, mobile advertisers should carry out the promotional activities only if they have permission from the user for the same.

The mobile devices usually have a small screen and there is no mouse as well. This makes navigation difficult for the mobile users. Because of this reason, most of the ads go untouched as the user may find it a time consuming task to go through each one of the details.

Mobile devices do not come with any standards. Thus creating issues of screen sizes, browsing and operations.

There can be a backfire in case the advertisement is not relevant to the user or is bad. Since mobile phones are a personal entity and the users might not like being disrupted with the inappropriate advertising.

So, if you are looking forward to try mobile marketing, then it is recommended for you to start with a small campaign first, choose a good mobile advertiser and give it a test run. When the right strategy is in place, a larger campaign can be rolled out.


Filed under: Advertising

Online Retailers Must Create Google Shopping Campaigns

Posted February 9, 2018 by Abhishek Pandey @ 5:42 am

For those who are new to Google Shopping Campaigns, it is a paid advertising solution by Adwords that allows you to bid on product based searches. They allow you to serve ads with product image, name, pricing, and some promotional text appear at the top of the Google Search pages, sometimes under the premium ads on the left, or even at the upper-right-hand corner. These images draw the eye and attract a disproportionate share of clicks. E-commerce stores that run AdWords Shopping Ad campaigns often bring in their highest ROI through these simple ads.

If you are a proud owner of eCommerce site who is using Shopping Ads for the first time, you’ll be surprised to see that the upload details of your product stock to AdWords is quite an easy task to do. Here is a list of things that you need to keep in mind while creating Google Shopping Campaigns:

Create A Data Feed

If you are a not an expert and a beginner who has the ability to code his own site entirely by hand, you probably want to speak with your webmaster about exporting your product list as a data feed. A specially formatted file containing a list of all your products and all the associated relevant information such as price, brand, image, availability, etc. The vast majority of modern e-commerce platforms make this easy to do with plugins and extensions, so you should expect this to be quick and straightforward for any competent webmaster.

Open A Google Merchant Center (GMC) Account

Again with this step, you may prefer to take help from your webmaster to enter your data feed details by providing him with the relevant login details of your new GMC account. if you set up and install the data feed correctly, it will update automatically as your inventory changes. In order to have better results, set this up in order to get your feed updated daily.

Link your Google Merchant Center account to your AdWords Account

GMC acts as a kind of middleman, assessing your feed, keeping an eye on the data, and making sure the format is correct. Therefore, it is mandatory to link your Merchant Center to your AdWords account and moreover it is a two-step process. You’ll need to send an approval request from the Merchant Center to your AdWords account.

Last Words

As with most things in AdWords, you’re looking for outliers. So depending on the situation, increase the bid on what’s performing well and similarly, decrease or eliminate the ones that are not performing or underperforming. For your shopping campaign, this means finding individual products that have sold consistently and profitably. You’ll want to increase the bids for these to encourage Google to show them more often. However, don’t be tempted to do huge bid increases at any one time. A “little and often” approach is a better way to go. You won’t typically increase the bid for any item by more than 10% at any given time.

Filed under: Advertising

Alphabet reports soaring Ad revenue while YouTube faces backlash

Posted February 2, 2018 by Abhishek Pandey @ 3:54 am

Image result for google and alphabet

Google’s saw its profits soar in the fourth quarter revenue disclosure as reported by Google’ Parent company, Alphabet, despite it seeing a crisis of trust in its growing YouTube video platform. The operating profits for Google Parent company Alphabet grew by 15 percent or about $7.7 billion in the fourth quarter. Its revenue climbed to an all-time high of $32 billion from $26billion reported last year. This came over the illusions created by the analyst who claimed the company going through bad times and might report a lowered revenue this quarter. Alphabet’s earnings per share came in under expectations at $9.70 and the tech giant took an $11 billion tax provisions sending its stock down in aftermarket trading.

As per Ruth Porat, Chief Financial Officer of Alphabet Inc. believes that such strong growth for the company was led by the mobile search in the recent times as the availability of such system has grown strongly in the recent years. The company has also felt a strong presence from desktop search and YouTube from the mobile users. The revenue from Google’s ad business also grew by 21 percent from last year and accounts for 84 percent of Alphabet’s total revenue. The company’s expansion beyond the Internet search and video platforms has started to pay off as it has ventured into cloud platform which competes with Amazon and Microsoft. It generated $1 billion in revenue per quarter which is really wonderful considering that it sidelined itself completely from Google.

But the technology-based companies like Google, Facebook and Apple have had to undergo severe scrutiny in the past few months of their power and influence on the society thereby provoking analysts to see a dip in their business and revenue collection as well.

Image result for youtube controversy

Google has been seeing and steering itself out of controversies regarding the backlash received by YouTube in the recent months from advertisers, content creators, parents, and users who say that the site fails to effectively enforce its rules banning disturbing and offensive content at times which is consumed regularly by millions without any human review. Google has tried to mend the same by introducing manual disclosures on YouTube. It also removed more than 100,000 developers on Google Play creating more than 700,000 applications which violated norms of the company.

Sundar Pichai, Google’s Chief Executive had signaled that its Video site YouTube will be responding to the outcry. “In addition to the significant work we are doing to protect users and stop abuse on the platform, just a few weeks ago we announced changes to advertising on YouTube.”

These changes would definitely bring stricter criteria for the types of videos receiving ad dollars and more manual reviews of content also. He also defended YouTube’s popularity saying that 1.6 billion people watch videos on it every month.

Not only has Google benefited from the soaring mobile penetration, the affiliate marketing sponsored through digital means have also soared up in the recent times with eMarketer expecting Google to command more than 42 percent of U.S. Market share for the digital advertisement in the coming years while it believes that Facebook will have authority over 23 percent of such advertisements. some Analysts have also viewed the Alphabet as a pioneer not only in advertising but also in various other forms. Eric Sheridan, an analyst with UBS told some investors through a note earlier this month that Google is highly placed for developments in some of the most important areas of technology notably Mobile, Machine Learning and Cloud Computing.




Filed under: Advertising,Brand Marketing

Facebook Bans Ads for All Cryptocurrencies and Bitcoin

Posted February 1, 2018 by Abhishek Pandey @ 3:40 am

Image result for ban on cryptocurrency

Bitcoin and other similar cryptocurrencies have proven to be the shortcut to small time investment thereby cutting large profits. But yes, you would not be able to reap that benefit anymore on Facebook because it has taken a severe step to ban all the advertisements concerning the cryptocurrencies and Bitcoin in Particular.

Move to ban Bitcoin

The Social Network on Tuesday announced that it will be banning all the Advertisements for Bitcoin and other cryptocurrencies in order to stop the promotions which the company views as ‘Frequently associated with misleading or deceptive promotional practices’. Under the new policy framework released by Facebook for ad posting, no ads from well-known digital currency exchanges or for Initial Coin Offerings (ICOs) will be allowed to be displayed on the site’s timeline thereby cropping out their advertisements. Among those who will be affected is James Altucher, a self-described “crypto genius” whose viral ads have become a talking point in how the cryptocurrency boom has led to scams and wild price fluctuations. Apart from him, the businesses which see huge growth potential due to the enormous traffic of Facebook will surely take a hit, but Facebook ought to do something like this in order to prevent itself from portraying an image marred with controversies regarding its ad-stuffing.

Why was the move to ban Cryptocurrencies important for Facebook?

Image result for ban on cryptocurrency by Facebook

Critics and analysts rushed to find the core of the reason for such elusive decision making by Facebook amidst a time which is suitable for such business growths. Its move also followed questions whether it has done enough to protect itself and its members from bad advertisers who constantly try to reap benefits out of everywhere without concerning the audience they cater. Facebook has been trying hard to clamp down on misinformation and false news after admitting last year that Russian agents had used it to spread divisive and polarizing messages during the American General Elections leading to the Presidential elections as well.

The world of cryptocurrencies is often marred with controversies surrounding its involvement in scams as its prices have soared in the recent months but often people fear from venturing into this world due to the fear of getting scammed or cheated into. The Securities and Exchange Commission on Tuesday said that it had halted what may have been a fraudulent initial coin offering which asked people to fund what was supposed to be the World’s first ‘decentralized bank’.

Rob Leathern, a Facebook product management director, while announcing the ban on cryptocurrency ads in a blog post said that the ban was intentionally broad as the Social Media site seeks to ‘better detect deceptive and misleading advertisement practices’.  He meant by the statement that the Company is readily looking forward to saving its members from getting impacts by some of the cryptocurrencies intentional behavior of harming the citizens through Facebook.

What goes overhead with such announcement is that Mark Zuckerberg, Facebook’s Chief Executive had recently shown interest in the digital currency and that any step towards banning them all out seemed uncertain. In a Facebook Post this month, he had written that he was studying how to introduce cryptocurrency to his company, adding that he thought it would ‘take power from centralized banking systems and put it back into people’s hands where it belonged’.

Filed under: Advertising,Brand Marketing

Get Ready for Increased Ad Prices on Facebook

Posted January 31, 2018 by Abhishek Pandey @ 3:13 am

Image result for facebook timeline ad revamp

It was not long when Facebook rejuvenated the idea of Ad selling on its popular timeline feature. Today, Ads are flooded here with cheapest of cost but this status quo would not last for long as Mark Zuckerberg recently share that the Facebook is mulling over revamping the news feed in order to prioritize the content from friends over content from brands, businesses, and publishers. This comes amidst growing criticism of Facebook over growing video content and advertisement in the timeline. The stock price of Facebook dropped by up to 5 percent following the announcement by Facebook CEO.

The drop in the stock rates comes from Publishers, Advertisers, and creators who see they’re future gloomy on the decision was taken by Zuckerberg. They are not taking the decision lightly and hence every focus must be given to it by all means. Facebook does update its news feed algorithms regularly, as Adam Mosseri, Facebook’s News Feed VP, shared last week: “This one is bigger than the average tweak. It’s not a tweak.”

Impact of the Decision

They understand the impact of the shift in the Facebook mindset over its business, we need to also understand its business model which is primarily driven by advertisement revenue and to tamper it with such decision would directly impact the business as well. Here is a simplified view of the key inputs into determining revenue for any ad-supported business model:

The Total Revenue for any Advertisement supported business model revolves around four key aspects such as Active Users, Time Spent per Ad, Density of the Advertisement, and Price of placed advertisement. While Active Users define the number of monthly unique visitors or users on the Platform, their time spent derives the average time spent on the platform. Ad density defines the average number of shown to each other and the Ad price is the rate each advertiser pays on average for each advertisement.

How will the Business get Impacted on Facebook?

Image result for reduced ad on facebook

Currently, if we go by stat, there are 6 million businesses which advertise on Facebook today. The decision will reduce their visibility of organic posts as a result of the news feed algorithm change. But there are worst possibilities here also – “Now, I want to be clear: by making these changes, I expect the time people spend on Facebook and some measures of engagement will go down,” Zuckerberg wrote at the time of the announcement.

If Facebook decides to make their products less addictive to encouraging time well spent versus more time spent, the overall usage of the platform will decrease. This impact will be slow yet continuous and hard because it is likely to reduce the average time spent on the Advertisement on Facebook as the opportunities for brands, businesses and publishers will shrink for both organic and paid posts. The supply will decrease which means the price to advertise on the platform is about to skyrocket.

Expected Forecast for Facebook Ad Price

Let us assume as to how the ad prices might change following such announcements regarding the revamping of Facebook timeline ad feature. We can assume the modest user growth in line with the historical trends, declines in time spent from 10 percent to 20 percent over the next year and static ad density. On the basis of such assumption, the price of advertising on Facebook could go up by 25 percent within three months, 48 percent within six months and 79 percent within 12 months. Now, this is a big growth on the part of ad prices and it might have the massive impact on the industry as well. This price surge for ads on the Facebook will not remain limited to only and might also transgress to its other products such as Instagram and messenger as well. Hence, the brands, advertisers, and creators should brace for impact and hence be ready for the change.

Source: Kunal Gupta, CEO Polar’s in-depth analysis of Facebook’s algorithmic changes


Filed under: Advertising
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