Tim Peterson says, “If the Facebook News Feed is beachfront property for advertisers, its ad network of third-party publishers’ sites and apps, Audience Network, is akin to a less desirable neighborhood on the other side of town. Now Facebook is looking to gentrify it.

To make its off-Facebook ads closer to being worth the money brands are willing to pay for clicks on their on-Facebook ads, Facebook will start scoring the specific ad slots on publishers’ sites and mobile apps based on how likely they are to get people to not only click on an ad but follow through with whatever action the advertiser wanted them to perform after clicking. And then it will use those scores to determine how much money an advertiser should pay for a given placement.

As a result of the ad placement scoring system, publishers in Facebook’s Audience Network shouldn’t be surprised if their ad rates begin to fluctuate as Facebook rolls out the scoring system in phases over the next two months (Here’s what publishers can do to prepare for the change).

Facebook is effectively taking on the role of real estate appraiser for the publishers in its ad network, for whom it’s already serving as real estate agent.

If a native ad slot in a publisher’s app proves to get a lot of people to click on the ad and do things on the advertiser’s site, like buy a product or sign up for a test drive, Facebook will consider that placement more valuable and reserve it for advertisers willing to pay more for the performance”.

Facebook will rank Audience Network publishers’ ad slots, price them accordingly

Marketing Land

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