Twenty months after its Craigslist competitor, Marketplace, and its steadfast promotion, the company will earn money in its classifieds section by placing it in the main navigational bar. Today Facebook starts testing marketplace ads in the U.S. that allows the average user to pay more people by using the news feed to increase their listing. Easy for beginners, requiring buyers only to set a budget and how long the ads will run, but age 18 and over users are shown in nearby ZIP codes, there are additional targeting options.
In the meantime, Facebook yesterday announced the launch of product ads for companies in the market. Marketplace ads are now officially available in both countries plus New Zealand and Australia, following their quiet opening in the USA in January and testing in Canada in May. Companies can extend their newsletter, video, Instagram, Messenger, and other marketing campaigns, and more target-based campaigns will soon open for the classifieds section.
Boost ads could help you quickly liquidate your furniture before moving out or if you try to sell something big at a high price, such as new cars, housing, jobs, and home services from Marketplace yet because the lack of targeting will make it possible for your listing for masculine jewels to show women or for senior citizens to show your rock climbing gear ads. They seem inefficient.
But Facebook tells me that the commercials are automatically optimized for clicks, and Facebook will show people with similar demographics when people start to click on your ads. If you mark your item as sold, it will immediately pause your ad campaign. In addition to traditional bids, boost ads are entered in the Facebook auction system that then shows what it anticipates to be the most attractive ads.
“A lot of Marketplace sellers told us they would like more local people in the area to be shown, especially if they try to sell it quickly,” says Harshit Agarwal to TechCrunch, product manager of Facebook. ‘We are beginning to test a simple way for vendors to increase their listings and help them to find a buyer.’ Craigslist doesn’t run any ads for comparison but charges the vendors between $5 and $10 for individual product listings for cars and apartments brokered.
One interesting thing is that, as its political advertiser verification and marking system only works now with pages, it does not allow for the increase of political products, as Bernie Sanders does not support President T-shirts.
The Boost ads appear to just a small percentage of U.S. users, and Facebook says it is too early to see if they will get further developed. However, because the company seems to be determined to swallow up any other essential part of the Internet, everything which will make Marketplace more useful and profitable for sellers and technology giants appears to be the suitable bet for an official launch.
Together, two formats might unlock Facebook’s new revenue streams at a time when the ad stock in the news feed is running out. The company must either open new spaces such as the market for ads or get people and firms to pay more if they want to make Wall Street happy.