Social network giant Facebook confirmed to withdraw plan to build demand-side buying platform to its Atlas advertising platform. The main reason is bots and low quality ads.
Atlas Solutions is a subsidiary of Facebook that provide online advertising service. Its solution has delivered billions of ad impressions a day, with a complete suite of tools for marketers. Atlas advertising platform also provide tools to manage, track, and measure the performance of advertisement campaigns.
The company has planned to test the buying platform and integrate it into its Atlas Solution service. However, the company on Monday announced to ditch the integration plan. In official blog, Atlas Solution mentioned two findings during one-year of effort.
Those two findings are the bad ads and fraud like bots which result to deliver less value for advertisers due to low quality ads. Second one is the two ad formats that deliver significant values are native ads and video.
Facebook Vice President of Advertising Technology Brian Boland told Business Insider that native and video formats delivered seven times better results than banner ads. Furthermore he said, "There are some fundamental things we want to have in place around video. The video ecosystem is fraught with low-quality supply."
In 2014, Facebook acquired Live Rail, a monetization platform for video advertising. Although video advertising has a better result for its clients, but Facebook discover similar quality issue on bots and low quality ads. Facebook removed more than 75% of ads because of two reasons: either the publishers deliver ads which were not viewable or ads were posted on sites that marketers did not want to advertise on.
In order to keep delivering high quality ads for its partner, starting January Facebook stopped receiving customers for Live Rail. Facebook wil continue to focus on high-quality demand, people-based marketing, measurement and ads delivery engine. Those four components are the core strengths of Facebook advertising power.
In the future plan of Atlas, Boland said, "The important thing to understand is that we are taking a fundamentally different approach. Our approach is helping marketers understand value. We're focusing on a mobile-first approach, when other tech is desktop [-first] which can struggle with the mobile environment. Our entire company is mobile-first and we are bringing advertisers this ability in a way no other system can."
Atlas has proven to deliver great result for Facebook. In October last year, head of global sales at Atlas Damian Burns told Business Insider that top 10 advertisers in Atlas spent more than $20 billion in advertising across all media. Daily News reported that Atlas was only using 15-20% of its full functionality to achieve the result.
Facebook will continue to focus on its core strength to maintain its advertising revenue. The social network giant shut down its high-cost project due to low quality ads and bots.
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