Facebook pares ad options, simplifies marketing tools to avoid confusion

Facebook is eliminating various types of advertisements on its website in an effort to simplify a system that it acknowledged was confusing marketers.

The world's No. 1 social network, which is seeking to revive revenue growth, will still display ads inside users' newsfeeds and on the right-hand side of its web pages. But it will sharply reduce the options marketers can choose for those so-called ad units. "What we realised is that even though every ad product is really good on its own, the whole is less than the sum of its parts. It should really be simpler," Fidji Simo, a Facebook product manager for ads, said at an event at the company's California headquarters on Thursday.

The changes will be rolled out over the coming weeks and months. Facebook said the streamlined system would not affect pricing on its ads, but would not comment when asked how the changes could affect overall revenue.

Advertising accounts for 85% of Facebook's revenue, and it is trying to reinvigorate revenue growth following a sharp slowdown early last year.

With consumers increasingly accessing Facebook on mobile devices such as smartphones, Facebook has scrambled to roll out new types of ad formats suited to small mobile screens.

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