Ads Coming to FB Messenger App
In class, we discussed Facebook’s auction strategy for advertisers. Facebook would list ad slots along with the click through rates and construct a matching market for the companies interested in using Facebook’s platform for their ads. This appeared to work well for Facebook considering the massive amount of income generated by this process. The analysts at Facebook, however, are always looking for way to increase profit. Consequently, they recently developed a new avenue for companies to advertise through Facebook.
Anyone who owns a smartphone and has a Facebook account likely also has the Facebook Messenger application. This app initially only allowed users to send and receive Facebook private messages. As the app evolved, however, more features and functionality was added to the app. In recent news, it appears that the app will soon allow companies to send advertisements to users as messages through the app. While this may cause some concerns about unwanted ads, Facebook will only allow ads to be sent to users who have already communicated with the company. This step to minimize spam from ads will help keep the ads relevant and useful.
Facebook’s efforts to improve the accuracy and relevancy of ads are what make them successful as a platform for advertisements. Many users hardly notice the ads on Facebook due to their unobtrusive nature. When considering the effect of ads on a group of people, it is not only necessary to examine the click-through rate or size of the audience but also how fitting the ad is for the targeted audience. This new feature in the Messenger app allows for even more personalized ad targeting which means more money for Facebook.
Link: https://9to5mac.com/2016/11/08/facebook-messenger-advertisements/