One of Facebook’s newest additions is not for users, but for retailers. It has added a new sales tracking tool to help retailers determine how effective their ads are on the social network. One of the biggest jobs or marketers is determining which of their efforts has the best payoff; Facebook makes it easier to learn that when advertisers buy ads with them.
Competing with Google
This new tool is designed to make Facebook more competitive with Google where relevant ads can be placed in front of a customer even while they are researching a product. While it is still not that instantaneous, Facebook is providing valuable information to help with immediate sales and should appeal to retailers.
The tool allows retailers to see the impact an ad has on their sales hours or even weeks later so they can know how effective it was to their bottom line. They will also be able to market their products to specific segments of Facebook’s users based on those who have responded to an ad in the past.
What this does for retailers is reduce their cost per sale by providing ads only to customers most likely to purchase. This includes other actions such as registering for a newsletter or signing up for email.
Does it Benefit the Customer?
If you are looking for an item, it can be advantageous to get ads that help you make your buying decision instead of seeing a bunch of ads that do not pertain to you. The biggest concern for consumers is that their information remains private, which Facebook assures is the case with this new tool.
In recent months, Facebook has been targeting advertising by adding new tools for businesses. They created tools to help businesses such as restaurants with an improved online coupon service and promoted posts.
Big advertising companies have also benefited from a tool that allows them to see the conversion from Facebook ads to physical stores.
Right now, the new sales tool is in testing mode, but should be available to all retailers by the end of this month.