Having 1.2 million monthly active shops and 300 million monthly visitors on Facebook and Instagram, the management of Social media platforms extends its marketplace to Whatsapp. Facebook adds Whatsapp as a new marketplace to accelerate its commercial activities. Monetization of Whatsapp audience now is the key focus of Facebook. The company will facilitate direct business activity on Whatsapp with its new e-commerce tools. Mark Zuckerberg broke in a social media message to introduce personalized advertisements in its “shop service”.
Facebook intends to expand its shop features to social media messaging platform Whatsapp in multiple countries. It has also decided to adopt the same stance for Facebook in the USA. Shops product listing to encourage customers for more buying are being floated on Facebook. Users dislike ads in their personal Whatsapp status and private messages threads. The company is seeking alternate revenue models. The product curation method adopted by the company will make it possible to appeal to specific demographics at the right place and time. It will leverage customer segmentation data while driving engagements to increase sales.
Zuckerberg said, “The Company would also run personalized advertisements in its shop service based on users’ shopping behavior. The social media website is introducing shop ads solutions that are going to provide a unique ads experience to its users. Taking part in e-commerce, the social media tycoon actively launched shops last year to facilitate masses for shopping on its social media sites Facebook and Instagram. Testing proved a great user experience as it pulled heavy traffic of shoppers. MNCs also showed a deep interest in the promotion of their products on these platforms.
Instagram reel ads were launched in Brazil, Australia, India, and Germany in April. It aimed to make money from short-form video features. It considered Reels as a great way for people to discover new content on Instagram. This launch privileged all kinds of brands to promote their products via this added feature. The reel ads loop individual reels and last for 30 seconds time. The promotion campaign was successful as it converted the audience into customers.
Zuckerberg states “e-commerce is company’s key focus in its areas of business. We believe in working on virtual and augmented reality helping content creators to earn money on FB’s platform”.
Facebook is paving its way in e-commerce with the use of advanced marketing techniques. It has ameliorated user experience with the help of immersive tools like Artificial Intelligence (AI) and Augmented Reality (AR). The company declares to test visual search, an artificial intelligence tool, to enhance user experience. The visual search would enable the users to click and find the product.
The tool will help the shoppers to hunt similar products on the photo-sharing site Instagram. Zuckerberg further added that users will be able to get the benefit of this search from content on the app or via photos on camera rolls. Moreover, Facebook is working on introducing AR product catalogs. These catalogs are based on niche segmentation. They will show the brands directly to the relevant users.