“What we’re really doing is bringing more stability to the value that sits underneath a click by tying it to outcome-based conversion signals, what advertisers really want,” Jakubowski said.
For advertisers, the change is negligible. FAN ad buyers will be able to format campaigns toward clicks or more direct business metrics, such as lead generation, sales, foot traffic or downloads. Facebook models will then optimize toward those goals. Buying against business metrics is already standard protocol across Facebook and Instagram, but now even click proxy campaigns on FAN will be tied to back-end metrics, Jakubowski said.
On the supply side, however, the news does rock the boat a bit.
“We anticipate some people being big winners” in terms of FAN publisher inventory value, Jakubowski said.
“If you’ve been optimizing toward native experiences and have been on a path focused on mobile UX, you should see a bump,” he said.
Publishers with ads or formats that hold less attribution value, such as an app or site that games the size of the “X” to generate accidental clicks, will see their CPMs decline. The caliber of advertisers on these sites will also sink, reduced to those that only pay the lowest prices for inventory.
“Publishers want to build long-term, stable business and they do want to provide value for advertisers,” Jakubowski said.
But publishers have no visibility into what business outcomes an advertiser really wants when they are only buying against clicks.
Although publishers still won’t have that visibility, Facebook will reward properties that perform better, which will make FAN inventory quality look more like Facebook inventory.
“I’ve never had a marketer show up and say, ‘My business is on fire because of all these clicks,’” Jakubowski said. “It’s always something like, ‘You’ve helped me sell all these products.’”