News outlets are reporting that Facebook will unveil significant changes to its Timeline tomorrow. TechCrunch has confirmed with sources inside Facebook that the news feed will be broken out into multiple streams based on categories, and that users will also see changes to photos and display ads. The update will make it easier for users to sort through the content on their Timelines and encourage them to spend more time on the social networking site. TechCrunch speculates that advertisers will also be able to produce richer ad content such as videos, flash, and homepage takeovers.

So marketers, expect to make changes to your Facebook advertising strategies as the new Timeline is rolled out. In addition to the aforementioned changes to display ads, the update should also enable advertisers to better target users based on what category their sponsored feeds appear in, and to integrate more thoroughly with the overall user experience with more engaging media.

Visit TechCrunch for more details on the update, and keep an eye out for details from Facebook tomorrow.