{"id":767,"date":"2016-10-10T22:49:04","date_gmt":"2016-10-10T22:49:04","guid":{"rendered":"http:\/\/www.rsoftsolution.com\/blog\/facebook-tests-ads-in-groups-its-next-potential-cash-cow.html"},"modified":"2016-10-10T22:49:04","modified_gmt":"2016-10-10T22:49:04","slug":"facebook-tests-ads-in-groups-its-next-potential-cash-cow","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/facebook-tests-ads-in-groups-its-next-potential-cash-cow.html","title":{"rendered":"Facebook tests ads in Groups, its next potential cash cow"},"content":{"rendered":"


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Facebook\u2019s latest trick to earn more revenue without drowning the News Feed is to serve ads to the 1 billion users of its Groups feature. After people reported seeing notices that \u201cWe\u2019re testing ads in Groups,\u201d TechCrunch inquired and Facebook confirmed that mobile and desktop versions of Groups in Australia, Canada, Ireland and New Zealand are part of the trial.<\/p>\n

\u201cWe have started to test delivering ads to people in Facebook Groups, and will be evaluating the response before determining how we will move forward,\u201d Facebook told TechCrunch in a statement. The ads will look the same as News Feed ads. They\u2019ll be targeted by Group topic as well as the standard identity-based targeting.<\/p>\n

\"facebook-groups1\"<\/p>\n

Facebook says it will reach maximum <\/a>News Feed ad load in mid-2017, which means it needs new revenue streams to continue its revenue growth momentum that\u2019s been going strong for years. Ramping up Instagram\u2019s ad load<\/a> and today\u2019s launch of its new pay-per-user enterprise collaboration tool\u00a0Facebook Workplace<\/a>\u00a0could shoulder some of the responsibility. Facebook\u2019s also been testing new forms of Live video mid-roll ads<\/a> and even Sponsored Messages<\/a> from businesses in Messenger.<\/p>\n

\"groups-hero\"But the easiest way to generate extra ad dollars may be simply opening up more of Facebook\u2019s traditional browsing to ad placement, and Groups is a massive treasure chest to unlock.<\/p>\n

Groups was one of Facebook\u2019s first features, starting as a non-functional way to say you support a cause or idea, from human rights to the joy of stepping on a crunchy leaf. The Groups feature was overhauled<\/a> in 2010 to become forums where people could communicate, not just affiliate.<\/p>\n

By 2014, Groups had grown to 500 million users and gotten its own standalone app<\/a>. Since then, it\u2019s doubled in size thanks to buy-and-sell Groups<\/a> for commerce and other communities. From families, cliques and silly meme sharing, to hobby clubs, protest organizers and professional discussion places, Groups have blossomed into a major part of the Facebook experience.<\/p>\n

It\u2019s that diversity of purposes that could boost the value of Groups ads. If Facebook can find a way to reliably categorize the Groups to enhance ad targeting, it could reach people of different interests with highly relevant and lucrative ads.<\/p>\n

Someone liking the Manchester United football team\u2019s Page is a relatively weak targeting signal compared to whether they frequent a Group for diehard ManU fans. The latter could more accurately indicate someone is likely to buy sports merchandise. Facebook will have to learn to identify the topics of Groups that can be cryptically named or range across a mess of subjects.<\/p>\n

\"groups-buy_sell-12\"<\/p>\n

450 million people now use buy-and-sell groups each month. Facebook just launched a dedicated Marketplace<\/a> feature for them. These Groups could be powerful hosts for advertisers, too. For example, they could allow an electronics brand to show ads to users browsing a group for selling TVs or computers. Of course, the social network will have to avoid showing so many ads that they anger visitors and discourage usage.<\/p>\n

Facebook Groups flourished by contributing a middle ground for sharing between News Feed broadcasting and private messaging. Now after a decade, Groups will start contributing to Facebook\u2019s bottom line. In case it wasn\u2019t clear, Facebook is willing to play the lonnnnnnng game when it comes to monetization.<\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunch\/social\/~3\/a1cKGuXBrWA\/<\/p>","protected":false},"excerpt":{"rendered":"

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