Status Updates = Facebook Ads?


Social media marketing is here to stay. And it’s proving to be a major player in the constantly changing world of e-commerce. In the past, social media channels supplement Internet marketing efforts. In time, social media marketing has become a vital and indispensible marketing effort for any serious e-commerce merchant. Now, the world’s most successful social networking site is pushing the boundaries for e-commerce possibilities through the website. According to an article for BizReport by Helen Leggatt, Facebook is using their user’s status updates as basis for the “Related Ads” that appear on the side. This comes at the heel of Groupon’s announcement that they are launching a new mobile application called Groupon Now. This application “asks users whether they are ‘bored’ or ‘hungry’ before deciding which deals to serve them.” The article reports that this new advertising feature is still on the testing stages and is currently limited to 1% of users or equivalent to about six million Facebook subscribers.

For example, if a Facebook user mentions wine or food, or any other associated brands, in a status update, it will trigger “Related Ads” to appear on the right hand side of the computer screen. In a statement by Annie Ta, a spokesperson for the Palo Alto, California-based company, for ClickZ, the company is “currently testing a feature that simply helps surface relevant advertising more quickly.” She clarifies that the advertising test involves only wall posts and status updates but not chat conversations. Leggatt notes that this development makes advertising on the world’s most popular social networking site more “into the moment” as it gives advertisers the opportunity to “strike while the iron is hot and encourage impulse buying” instead of ads that are based on user data that is not up to date.

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