Facebook Inc(NASDAQ:FB)’s Offers, a free service, will now be monetised by the social network to generate revenues for the company, that is under increasing pressure from analysts and investors to look at new sources of income.
Businesses used to utilise Offers to make their deals available to fans on the social network platform. These offers are claimed by fans and the vouchers redeemed at the relevant stores.
Facebook is planning to charge marketers at least $5 on related advertisements for promoting each offer on the site. The cost will depend on the size of a company's Facebook pages.
For Facebook's founder Mark Zuckerberg it has all been about offering services to users and getting them hooked on to it. However the market is merciless and demands numbers. Facebook now finds itself in a position where it has to monetise each and every aspect of the services it offers.
"We think this aligns incentives nicely," said Gokul Rajaram, director of product management for Facebook's advertising and Pages businesses.
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"The best results on Facebook Offers will come from organic distribution plus paid distribution."
Deals related to Facebook Offers have not always been properly targeted towards the relevant users.
Rajaram said that paying a fee for it will prod businesses into making sure that marketers focus the offers towards people who can benefit from it.
Facebook is also expanding Offers to online-only businesses, he added. Before, the service was available only to merchants with physical locations.