The social networking giant is rolling out a tool through which e-tailers can trace sales stemming from the click-through traffic of Facebook members.
Despite its boast of 1 billion users, Facebook has sparked concern on Wall Street over a recent lull in revenue. With its latest tool, FB has set out to show marketers that advertisements yield greater returns when displayed on the world’s leading social network.
In the words of Facebook Product Manager David Baser, it is absolutely critical for e-tailers and marketers to gauge their ads for utmost efficiency. The latest FB tool, he states, has been a top-listed request amongst businesses on the network.
For those concerned about privacy, Baser assures that the info-tracking tool will protect the identities of customers. Advertisers will see the volume of customers, for instance, but they won’t see the names or profiles of FB members who make purchases.
The tool has been developed with direct marketing in mind, particularly for e-tailers and travel sites that seek to drive up instant sales.
Direct marketing businesses have typically utilized the search engine on Google, which generates ads based on user search requests. While the competition might be tough, analysts predict that Facebook can sway advertisers if its tool yields results.
Though she admits that the purchasing path is more direct on Google, analyst Debra Aho Williamson of research firm eMarketer argues that Facebook could lure advertisers by showing precise information on click-through conversion rates.
The strength, Williamson insist, resides in the tool’s ability to track the impact of FB ads for days and weeks beyond their initial air time. This, she states, will help marketers gauge the overall success of ads in converting views into purchases.
In addition to the tool’s tracking power, Baser states that marketers will have the ability to direct ads towards like-minded segments based on consumer response towards previously run campaigns.
Among the tool’s initial users is Fab.com. After serving ads towards those judged as most likely to convert, Fab cut its new-customer acquisition costs by 39 percent.
This new tool marks the latest in a string of features that Facebook has launched to lasso in a broader range of advertisers.
As revealed by the company’s Chief Operating Officer Sheryl Sandberg, October revenues for Facebook reached the multi-billion range across the advertising spectrum, with interest from app makers, brand merchants, direct-response marketers and local companies.
Though it won’t disclose any specifics on advertisers, Facebook’s Q3 ad revenue toppled $1.09 billion. Analyst Brian Weiser of the Pivotal Research Group estimates that the bulk of FB ad revenue stems from local businesses and brand marketers.
In the earlier months of 2012, Facebook partnered with Datalogix on a similar device through which big-name auto advertisers could gauge conversion rates. FB has also helped restaurants and smaller businesses market more effectively through the network with coupon services and features that enable promoted posts.
The latest tool, which is launching in tryout mode, will be properly released at the end of November.
Source: Mercury News