Facebook Home Means New Possibilities for Advertisers

Facebook Home Means New Possibilities for Advertisers

April 8, 2013

The recent announcement of Facebook Home has the potential to be a game changer for advertisers on the social platform. Facebook Home replaces a standard Android’s home screen and lock screen with an immersive Facebook Cover Feed featuring constant full-screen photos, status updates, and notifications. The deeper mobile integration of Facebook Home could help the company not only attract more advertisers, but also provide more compelling ad products.
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Currently, Facebook enables advertisers to reach more than one billion people with ads that are relevant, engaging and have social context. Of Facebook’s 1.06 billion monthly users, 680 million log in using a mobile device. As a result, Facebook’s mobile advertising revenue is also growing.

“We’re designing and working on a lot of really high-quality ad units in [News] Feed already,” Facebook product director Adam Mosseri said at the press event. “We will bring those to Cover Feed and make sure they are aligned with the aesthetic and quality bar of everything else in Cover Feed.”

Now with Facebook Home, a new world of opportunities could be created for advertisers – especially as a testing ground  for new ad types and delivery methods that could eventually be rolled out to Facebook’s existing platform across mobile and desktop. Beyond expanding the amount of time people spend on Facebook on their mobile phones, Facebook Home could potentially provide advertisers with two key components of successful mobile campaigns — comprehensive user profiles and real-time targeting opportunities.

Gather more data to build comprehensive user profiles

OS level access provides Facebook with a better understanding of Android users around the clock. From user search activity to location-based data to commuting patterns, Facebook could have the ability to define better user profiles for advertisers. Additional data could come from payments and cross-app activity leading to even more powerful targeting opportunities.

Real-time targeting opportunities

The potential for location-based targeted ads is extremely promising. For example, a Facebook Home user could be walking past a new restaurant and receive a targeted mobile ad via Facebook Home. This kind of targeting is beneficial to both the advertiser as well as the user.

Facebook says it is by far the number one app by minutes used, taking upwards of 20 percent of user time. With Facebook Home pulling visual content from News Feed, users can easily browse stories and interact with friends without opening the Facebook app – this leads to the high probability of Facebook leveraging user profiles and real-time data to experiment with advertising. This dynamic shift in how users receive advertisements could prove to be a massive win for Facebook’s advertising offerings. Furthermore, should wide adoption happen for Facebook Home, it places pressure on Apple to consider further integrating Facebook within iOS in order to provide similar functionality. It is still too early to say whether or not Facebook Home will be a success; however, it is a clear sign that Facebook is willing to make bold moves on it what it considers being its future: mobile devices.