As one of the fastest growing platforms of mobile advertising, Facebook’s projected to have a profit increase of 137% this year, with mobile advertising contributing significantly to that. 63.4% of Facebooks advertising revenue is expected to come from mobile, a significant increase from 45.1% last year. It’s clear that, due to Facebook’s advertising reach and targeted campaigns, mobile advertising will be monumental in Facebook’s strategic future.
Facebook’s latest strategic play in the mobile advertising game is their refocus away from ‘Facebook Gifts’ and towards a new innovative ‘Buy’ button on their onsite and third-party app advertising. In short, it will allow consumers to make an e-purchase without having to leave the Facebook website, or whichever third-party app they’re in. But there’s much more to it than this, as you would expect from social media giant Facebook.
Facebook’s user information is vast beyond comprehension as it is, but this new move will give them further insight into our online behaviour (including our online purchases). Facebook will then use this to provide more targeted advertisements between businesses and users.
Facebook will work with retailers and data providers to identify retail customers as Facebook users, via recognisable characteristics (name, e-mail etc.), allowing them to prove the return of investment on their advertising through offline purchasing. It also targets ‘Custom Audiences’ which means businesses can target specific users that have shown an interest in a product, both online and offline.
One of the main features of Facebook’s Buy button is the auto-fill feature. This will require users to divulge their banking details, much like Paypal, allowing Facebook to automatically fill in a user’s billing information onsite and in third-party apps. This will significantly increase the ease of a purchase and simplify the conversion process for businesses.
In theory every company should see this as a great opportunity. But many experts and analysts are cautious about Facebook’s new strategic positioning. A common theme appearing is the user’s likely reluctance to trust Facebook with their bank details, especially with issues about user privacy online constantly being under fire. Once this hurdle is overcome, Facebook is expected to excel, with little to slow them down.
Facebook aren’t the only one’s focusing on easy payment solutions though. Apple are rumoured to be working on a product that will integrate their existing services with easier and safer payment methods, although very little is actually known so far. Google have also exposed the Google Wallet, which allows users to make payments online, purchases in store and purchase things in apps. However, Google Wallet is only currently available in the US and is said to be having issues being embarrassed by the American market.
Facebook are making significant strategic advancement in mobile advertising, clearly showing a growing popularity in mobile e-commerce. With new innovations like Facebook’s Buy button, will your website stand up to the competition without being adapted for mobile users? Contact us today to see how a mobile friendly website will benefit your business.