Opinion: As people’s behaviors evolve, so does the social network.
Businesses will be able to advertise in Facebook Marketplace to reach consumers who are actively buying, according to Facebook. People haven’t typically frequented Facebook with a shopping attitude. So, what exactly is the point?
The point is that people’s habits vary, and Facebook is responding to these changes.
We used to be able to interact with our families and friends on social media platforms and converse by exchanging stuff. They are still doing so. People have begun to use these platforms for trading reasons in recent years.
Facebook groups, for example, have evolved into natural places for people with similar lifestyle interests to begin offering to purchase and sell items related to their interests. When people join vinyl-loving clubs, they invariably question, “Does anyone know where I can obtain an original record of Sgt.
Another member raises their hand and offers to sell a copy of Pepper’s Lonely Hearts Club Band.
Users have used Facebook groups to purchase and sell products locally, but finding a buyer or seller requires navigating through dozens of groups, making the use of groups cumbersome and unworkable for commerce.
As a result, Facebook launched Marketplace in 2016 in an attempt to centralize the shopping experience. It promised to be a one-stop shop—an interactive location where users could browse products for sale in their neighborhood by category.
But there’s a key distinction: Facebook users can now quickly find a variety of products (new and used) and services from stores and other businesses in one place, from used vehicles to home services. Buyers can be confident that they are doing business with a legitimate firm because those businesses have been evaluated by outside companies.
Why would it be beneficial to advertise on the Marketplace?
Facebook is posing a threat to marketplaces like eBay and Craigslist by launching a Facebook Marketplace that makes it easier for buyers and sellers to do business. This also helps Facebook maintain user engagement, which is becoming increasingly difficult.
Facebook does not take a percentage of income from Marketplace products. However, Facebook is always looking for ways to make money off its products, which is why it has made it easy for businesses to advertise on Marketplace.
The difference in user intent is the reason why advertising in Marketplace have potential. Users who come to Marketplace are looking to make a purchase. People reading through their News Feed, on the other hand, aren’t necessarily looking to buy something; they just want to chuckle at a funny meme or watch a funny video.
Conversion and catalog sales advertisements will almost certainly outperform traffic and video views advertisements in this new positioning. Conversion efforts in Marketplace should have higher click-through rates and lower cost-per-action than those in the News Feed, in my opinion.
However, because most users spend the majority of their time in News Feed, Marketplace may have a less reach than News Feed. However, when businesses begin to test this new functionality, charges per click on Marketplace may be cheaper (at least for the time being).
Results from client work
So far, our True Interactive customer experiences have been in line with my expectations. For example, we recently put a conversion campaign to the test for a customer. The cost per conversion in Marketplace was far lower than that in the Facebook News Feed, as I had predicted.
However, reach was limited (only 4 percent of total campaign reach). Overall, the CPA in Marketplace was 19 percent lower than in News Feed.
Marketplace advertisements are currently only available in the United States, Canada, Australia, and New Zealand. You can use the reach, traffic, conversions, catalog sales, or video views campaign objectives to run advertisements in this new placement.
Advertisements will be optimized for clicks by default, which means Facebook will show your ads to people with comparable demographics. (Facebook will also put a stop to your campaign if you mark your item as sold.)
Since Facebook relaunched Marketplace, it has been used by over 550 million individuals in 51 countries each month, compared to 55 million people who browse Craigslist on a monthly basis. Those figures should persuade advertisers to investigate Marketplace further.
I recommend that businesses test Marketplace advertising and compare the outcomes to Facebook advertising in general. Users with a higher buy intent will see your advertising, but you’ll be targeting a smaller audience. Now is the moment to put your skills to the test.
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