Facebook has started testing a new ad product that showcases multiple brands in one single advertising unit.
Facebook is running out of ad space in News Feed and it seems the company is currently testing a solution to this problem by allowing multiple brands to be featured within one same ad unit. The new format is currently being tested in the US, the UK and Canada, and opens the door to brand collaboration.
The new format was first uncovered by Cameron Mills, a growth expert at Brandless, who shared this screenshot with our friends over at Digiday:
According to a Facebook spokesperson, this multi-brand format allows for up to two different brands to be featured within one same ad unit. Facebook also confirmed that all advertisers would have to agree prior to being featured in a multi-brand ad.
Mary Haile, Product marketing manager at Facebook, further explained:
“We are conducting a small test that groups product recommendations from different advertisers into a single experience. We will evaluate if it creates value for people and businesses before deciding whether to expand it.”
In my opinion, this could be a great innovation for brands, as long as both the featured brands and/or products are complementary. It is also a possibility that such innovation could lower CPM and increase efficiency for smaller budgets.
Brands that accept to be featured in this new ad unit will also have to give up control, as they will not be able to choose which other brands they appear with.