News: Blog

Facebook’s Lead Ads Shine The Light on Performance-Based Advertising

We were excited to see the news break yesterday that Facebook has been testing a new type of ad offering called “Lead Ads.” According to TechCrunch, with these new ad units, “a marketer can buy an ad asking for you to sign up for a newsletter or request a sales call, and with two taps you can auto-fill your email address, phone number, or other info you’ve registered with Facebook.”

From our point of view, “Lead Ads” reflects the increasing demand from advertisers for two things:

  • First, marketers want greater accountability from online ad spending. Ad dollars are increasingly shifting to performance-based campaigns, as marketers (and their bosses) have less tolerance for paying for wasted impressions and clicks that go nowhere.
  • Second, Lead Ads reflect the markets ongoing shift towards people-based marketing (rather than pixel-based) – a trend that Facebook itself pioneered. Marketers increasingly need user data (email addresses, phone numbers, postal addresses) not just for their CRM campaigns, but also for omni-channel re-marketing and acquisition-focused display advertising campaigns across social, display, mobile, etc.

At the end of the day, with Lead Ads, Facebook is skating to where the puck is heading, and in the process is shining its massive spotlight on the value of performance-based advertising for brands and consumers alike.


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