Wednesday, August 22, 2012

Facebook Inc (NASDAQ:FB) Releases “Sponsored Results” more broadly

The test phase of Facebook Inc (NASDAQ:FB)’s Sponsored Results search typeahead ad unit is over – it has been launched today! This unit will let marketers reach out to target users who are looking for specific Pages, Places, and apps, by incorporating a link into the results thrown up by the typeahead that will direct users to their own app, post or Page. Off-site users have not been included as of yet, but these results can made to appear above the organic results, thereby increasing their visibility. This ad unit will pose as a serious challenge to Google in terms of search ad dollars.

Zynga and Match.com are presently running on the Sponsored Results circuit. Some changes have been made in that sphere as well. The stories have been put in separate, sections in the typeahead results with black borders around them. This alteration definitely increases the credibility of the paid marketing campaign. A “hide the ad” option has been provided as well, but certain issues have cropped up as to why a user might use the option.

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Facebook is constantly devising new strategies for placing ads. Sponsored Results above organic ones can help apps and games to divert traffic away from rivals with similar products. But Facebook Sponsored Results might not be too useful for advertisers than the ones on Google. When people search on Facebook, they look for something specific and due to this reason; they might choose to ignore ads. Certain ads may have the persuasion power to attract users to that particular brand and thus get a high price for Google, which in turn will increase ROI in leaps and bounds for businesses.

The typeahead ad unit will work fine in helping users to get access to more content and apps as long as it does not hamper the quality of the News Feed in any way, which is a key feature of Facebook. We have to wait till the figures come in to know about the success ratio of the ad unit.
Shares of FB ended higher by 1.46% to $19.44.

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