In Facebook’s October Graph and Marketing API update, they announced some changes that will affect brands and advertisers.
“In mid-2020, we are implementing a limit on the number of ads each Page can run at the same time. The ad limits will impact just a small percentage of advertisers, and we plan to share more details about the limits early next year.”
Brands who use Facebook as a core part of their advertising strategy might be concerned over this update. However, how will Facebook increase their own revenue if it limits how many ads people are able to run?
It’s important to understand that Facebook isn’t putting a blanket ban on the number of ads you can run. It’s simply suggesting that there will be a limit on the number of ads you can run at any one time.
Facebook’s algorithm works by scaling winning ads and optimising poorly performing ones. If you’re able to have 1000 ads running at any one time, the likelihood is you’ll experience a poorer ad performance.
Facebook wants its large advertisers to be successful on its platform, so limiting the number of ads you can run at the same time means more budget is spent learning and improving a single ad’s performance. When you have a high ad volume, fewer ads leave the learning phase.
The learning phase refers to Facebook understanding more about the best ad options for you. Every time your ad is shown, Facebook gathers more data about your audience and placements to help you achieve the best ad performance.
For advertisers, this means more expenditure before any optimisation of the ads performance can take place. Ideally, you should wait until Facebook has completed its learning phase before you begin optimising your ads. Optimising ads refers to changing the creative, targeting or budget to achieve your goals.
The changes haven’t been implemented yet and are expected to come into effect mid-2020. It also won’t affect all brands, so keep an eye out on future updates to see if your brand will need to make changes to your Facebook ads strategy.
In order for brands to prepare, Facebook has released a new version of its marketing API that includes the Ad Volume API. Brands and advertisers will have a clearer idea of the volume of ads running in any particular account.