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Facebook, Like the Rest of the Industry, Looks At More Flexible Ad Pricing

Facebook appears to be experimenting with more flexible ad price models, based on an account in All Facebook.  The publication reports that a Facebook advertising test is currently underway in which marketers are charged per action—namely, it is adding likes and comments to the clickthrough-based price model.

The social network told All Facebook the test was being conducted to allow marketers "to indicate that they’re interested in optimizing their campaigns for actions."

A Move Away

Facebook is not the first channel to indicate its willingness to move away from traditional online ad pricing. Its reach, though, with small business firms could well push the industry harder in this direction.

Apple is becoming more flexible on pricing for the iAd, the Wall Street Journal reported this week. Instead of charging an advertiser every time someone taps on an ad, Apple is now putting a cap on taps, a source told the Journal. Marketers now only pay $10 per thousand views and $2 for each tap.

In October, BrightRoll introduced an audience guarantee to advertisers for ads that they run on the BrightRoll network. Under the program, called TAG, for Total Audience Guarantee, digital video advertisers only have to pay for the impressions that reach their target audiences.

Google, as well, as been pushing cost per action pricing.  Last December, as one example, YouTube launched its TrueView ad format, which lets users skip ads they don't want to see - and only charges advertisers when the viewer has actually watched the ad. The product comes with a countdown button lets users skip the ad after it plays for five seconds - TrueView Video Ads - InStream.

Later, in some cases, advertisers can offer viewers a choice of three pre-roll options to watch. Google said early results suggest view-through rates of 20-70%.

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