updated 05:43 pm EST, Sat November 17, 2012
Tool would allow vendors to track purchases from Facebook
Facebook this week began rolling out a tool that would allow e-retailers to track purchases made by Facebook users that have viewed their ads. The move comes as the world's largest social network continues in its efforts to demonstrate to investors that it is capable of monetizing its billion-strong user base. For e-retailers, the new feature could help to gauge the effectiveness of online marketing initiatives on a particularly granular level.
Facebook's conversion tool, according to Reuters, is designed more for direct response marketers than for long-term brand-building. It would allow marketers to see the number of people that bought a particular product after seeing an ad, an attractive feature for many online retailers.
The tool would not, though, allow marketer to gain access to information that could identify Facebook users.
Since its record-setting initial public offering, shares in the world's largest social network have dropped precipitously, as analysts fear it will be unable to transition into a truly, reliably profitable and growing enterprise. To combat the trend, Facebook has been rolling out a number of advertising initiatives and e-commerce features, all aimed at turning its massive user base into dollar signs.
Currently, the conversion measurement tool for marketers is in development and testing stages. Facebook expects it will be fully available by the end of the month.