Social networking giant Facebook Inc. (NASDAQ: FB) has launched its much anticipated and possibly a very profitable way to flash only highly targeted advertisements to its users. Typically, what consumers have shopped in the past, either online or through brick and motors stores, provides fairly good idea on his/her likings and more importantly tells what they are most likely to buy in the future.
Now, Facebook, in order to track this important summary, has partnered with four leading data companies that include Acxiom, Blue Kai, Epsilon and Datalogix.
Optimal, a San Francisco based Company which helps advertisers to target advertisements specifically towards would-be consumers, said that the new product will make it easier for advertisers to target those users/customers, who are more likely to buy their products, according to the New York Times. For instance, a regular pasta buyer will receive messages from pasta sauce makers and so on.
Facebook has been reeling under pressure to boost its revenue from advertising, which is the Company’s main top line driver. The social networking giant’s new product launch is expected to lure more brands to advertise their products via Facebook since the its new partnerships with data companies, would allow advertisers to identify potential customer at a right time.
Commenting over the latest launch, Facebook said in its blog, “To date, advertisers have been able to show ads to people based on their expressed interests on Facebook. Now with partner categories, they can also show ads to people on Facebook based on the products and brands they buy across both desktop and mobile.”
Speaking to the New York Times, Nate Elliott, an analyst at Forrester, said that it was “a smart step”; however, he added that more needs to be done to improve targeted advertising on Facebook.
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