Facebook Inc(NASDAQ:FB) shares extend gain and rose another 6% to $23.45 as the company seems more credit for ringing online cash registers.
Facebook will start rolling out a new tool on Friday that will let online retailers to keep a track of the purchases that are made by the members of the social network, who have viewed their adverts.
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The tool is the most recent among the new advertising features that the social networking giant is offering to persuade marketers that steering advertising dollars to the company will surely help in delivering a payoff.
Facebook has roughly 1 billion users and has gone through a tough reception on Wall Street among concerns about its slowing revenue.
A product manager for Facebook’s ad business, David Baser said that calculating ad effectiveness and outcomes is immensely important for all kinds of marketers and businesses. He believes that conversion measurement is a tool that has been a top customer request since a very long time.
The sales information that advertisers are receiving is unspecified, as told by Baser. He gave an example of an online shoe retailer that even though marketers would be able to see the number of customers, who purchased the shoes, they would not be able to get data on identifying the people.
The conversion toll is especially designed for online retailers as well as travel websites that promote with the aim of getting immediate sales instead of longer-term brand building.
Such advertisers have stuck to Google’s search engine since long since it can deliver ads to customers in real-time.
However, there are some analysts, who find that that there is room for Facebook to make inroads in case it can bring in results.
Debra Aho Williamson, an analyst at eMarketer thinks that the path to purchase is not that direct when it comes to Facebook, as it is in Google. She feels that providing data regarding customer sales conversion will help Facebook in making a stronger case to online retailers.