A popular outlet for social media marketing initiatives, Facebook have themselves announced their intentions to increase advertising revenue, according to an interview by TechCrunch cited in an article published by Search Engine Journal.
Facebook currently earns the majority of its $4 billion in annual revenue from advertising.
The company’s Ads Product director, Gokul Rajarum, stated when questioned about the future of Facebook advertising: “Our hope is that almost every ad on Facebook at some point a few years down the road will be a Social Ad or a Sponsored Story.”
Rajarum produced some impressive figures for Facebook Social Ads, revealing to TechCrunch that the ads made people 68 per cent more likely to remember the ad, increasing the chance of a consumer buying a product by 400 per cent – compared to the standard display methods.
The introduction of Sponsored Stories has been a positive for advertisers looking to target a wider audience; they work by displaying adverts from a brand that a friend has ‘liked’.
Social Ads operate similarly, with a users friend able to share a brand’s story based on the impact that brand has had on them.
“Facebook Ads are essentially based on the premise that people want to discover what their friends are doing,” Rajarum added.
It is thought that the personal aspect of Facebook’s Social Ads gives them a significant advantage over their competitors – as people are more likely to respond to a friend or acquaintances’ seal of approval, albeit through interaction.
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