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How to Use Each Facebook Ad Type
Video engagement ads - The best part of this format is that there is no time limit on the length of the video. So, the video-ads are in effect, extended commercials. Advertisers can choose to display their video ads to target demographics.
Branded gift engagement ads - The biggest advantage of this format is visibility. When a user gives a gift to another, the gift is displayed on the hompage of both users. Other users will be able to view gifts that their friends gave or received. Advertisers will get information on the demographics of people who gave and received their gifts.
Event engagement ads - These ads are best for stores to draw traffic on specific days. Examples of such ads are Ben & Jerry's free ice cream day or Starbuck's Free Pastry Day (which is today btw.) Since users can see if any of their friends are attending such events, it gives the event/brand than much more exposure.
Fan page ads - In this format, the advertiser creates a Facebook page for the brand. Users choose to follow the brand on its page. Advertisers can display Facebook page ads on user homepages and are charged on a CPM model. AllFacebook says this format is more expensive than self-service Facebook ads, but has no information on the ads' performance.
Hybrid engagement ads - This format is a combination of any of the above two formats. The most popular - combination of video and event engagement ads.