The days of TV ads are numbered, and it is all thanks to Facebook. No longer will ad revenue only be enjoyed by television executives as Facebook is coming in for their cut of the pie. Starting soon, Facebook will begin to deliver ads on many over-the-top, or OTT, TV providers such as popular services like Apple and Roku. According to a Recode report, Facebook's advertisements will run on networks such as A+E and Tubi TV. This entire endeavor will be administered Facebook's Audience Network, which will give OTT TV providers much more capability to deliver more precisely targeted ads and better cross-device matching than ever before.
According to a statement released by an A+E spokesperson, “The Facebook project is the type of progressive thinking to which A+E Networks is incredibly committed.” Despite this statement of obvious commitment to the move by Facebook, it is still unknown exactly how set-top box makers will react to Facebook controlling the ad delivery on their hardware. Regardless of their reaction, this is still considered to be a major shift in ad delivery for OTT TV providers and will likely have a strong effect on the user experience. With more precise targeting for their AD delivery, consumers will be fed advertising content that is more directly related to their interests and needs, which will create more effective campaigns and a better user experience.
To Install or Not Install, App-Install Ads Are the Question For Snapchat
According to an Ad Age report, Snapchat has been propositioning potential direct-response advertisers with the idea of app-Install ads. The micro-investing app known as Acorns has significantly noted that Snapchat is already blasting Facebook with a 40% higher download and install rate for its app ads. It is considered that this could be attributed to Snapchat’s swipe-to-download super easy downloading process, which is extremely user friendly and engaging for consumers. According to an Acorns’ chief commercial officer, "Within the first two weeks we were really close to Facebook-like efficiency."
This shows promising prospects for Snapchat and new ad revenue sources in the future.
However, in order to be truly successful at pushing app-install ads to a higher level, Snapchat will need to get on board with an overhaul of its retargeting tactics. Although this is a reality for any valuable level of ad revenue, the CEO of Snapchat, Evan Spiegel, has voiced opposition to it in the past, claiming it to be a creepy practice. Despite this, if Snapchat wants to become a realistic rival to Google or Facebook, then they will need to develop more advanced targeting and retargeting techniques for ad offerings. There is some concern in the tech world that Snapchat will fail to adopt the tactics that make online advertising effective, which also casts doubts on Snapchat's potential success in the realm. Despite this, they are still making waves with their success in the first few weeks of their venture into app-install ads.