Facebook Experiments With Product Ads

In order to increase revenue generation, Facebook has come up with the idea of giving it a go with product ads. Only last week, the social media giant started showing these ads on the desktop site as well on the smart phone app. These ads are to help the producer of the products to widely promote their brand and the commodity that they are selling. A special feature of these ads is that they can be tailored on Facebook according to the user’s likes and dislikes.

The first companies to have experienced with the new ad service of the social media company are Target and Shutterfly. This new venture of Facebook (NASDAQ:FB) will be in competition with Google’s Shopping Ads which it started in 2013. This form of advertisement worked quite well for Google as it appears when a user searches for a particular product and then guides the user to view a much better and graphically renewed ad than the other cheap ads that the internet usually exhibits. Also, this makes it easier for the users to carry on with their transactions without facing any problems.

Having said that, the new Facebook ad scheme is bound to give Google a run for its money as it is going to be better than what the search engine giant is already providing to its users.

Google’s Shopping Ads have consistently worked in favor of the company in terms of revenue generation.  According to a recent research report on ads, it was observed that retailers have been spending lesser on text ads and more on Shopping Ads. Analysts at Adobe have predicted that by the time 2015 ends, the search engine giant will be gaining more than 30% ad revenue from Shopping Ads.

Retailers have been creating their own personalized product ads, but they aren't as huge as Google’s, neither are they catering a larger target audience.  Facebook Inc. however, is capable of creating ads that may increase the profits for the social network company in contrast with the one's the tech giant is tapping, and might get successful in capturing Google’s massive ad revenue generation.

The social networking company is not only making it easier for retailers to make compelling ads but it is also helping them spread these ads out to a wider audience by putting them across a wider range of devices. The company has without a doubt a better targeting capacity through which it can reach out to more people than Google is already dealing with. This is expected to result in the networking company’s favor while giving a point of worry to its rivals in the ad industry.