March 11, 2015 09:00 ET

In Advertising Measurement, Facebook Emphasizes Viewed Impressions Rather Than Served Ads

Video Commerce Platform Sees Facebook's Effort as a Welcome Shift Toward Providing Greater Value for Online Advertisers

SANTA MONICA, CA--(Marketwired - Mar 11, 2015) - Facebook has announced that advertisers should measure advertisement effectiveness not by ads served, but through the number of ads viewed. In the company's blog post, Facebook said it already focuses on viewed advertisements and urged other businesses to adopt the same standard.

Online advertisers have long been guided by served impressions. This means that impressions are measured by the number of times an ad is served, not by whether the ad has actually been viewed. This format has been marked by inefficiency, as advertisers lack data on how effective their ads are at achieving views and conversions. Facebook, along with the Media Rating Council (MRC) and the Interactive Advertising Bureau (IAB), are teaming up to advocate for a new industry standard for online ads. Their metric counts an impression only when an ad enters the screen on a desktop browser or mobile app. If no part of the ad enters the screen, it is not counted as an impression, and the advertisers are not billed.

Nouriel Gino Yazdinian, the founder of video platform company, understands the importance of viewed impressions for advertisers. "On a gut level, advertisers know that advertisements don't have any value if no one sees them. Yet for years, the web has only given them pricing based on the number of ads served. This creates a frustrating dynamic for brands, who need to know their ads are resulting in real value." This dynamic is one of the reasons Yazdinian created, a video commerce platform that brings together advertisers, brands and publishers to create and promote video advertisements.

Like Facebook, Modulates has been an industry leader in providing maximum value to advertisers. Studies have proven that the future of internet advertising is video. Video increases click-throughs, leads and conversions. Forrester Research found that one minute of video is worth 1.8 million words. "This makes video advertisements the single most important online advertising a company should invest in," said Yazdinian. "When it comes to video ads, the old adage about working smarter rather than harder applies." Modulates' technology allows advertisers to promote their products and services to more than 100,000 publishers and affiliates. Modulates also utilizes a suite of tools to analyze the how the videos perform, so advertisers can measure how their audience responds and which publishers are helping to drive traffic to their website. Modulates and Facebook both agree that technology should be geared toward providing their partners with the highest return on investment.

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