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Facebook is launching a new direct-response advertising platform

Published
today Apr 11, 2017
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When Facebook launched in February of 2004, it was merely a platform to connect, post photos and share status updates. But ever since it started featuring “sponsored story” ads in Facebook feeds in 2012, the popular platform has become a game-changer for companies looking to advertise to the masses.

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On Thursday, April 13, Facebook will launch a new mobile advertising format called Collection, part of its effort to evolve with the ever-changing needs of the consumer. The direct-response format provides retailers with an outlet to tell visual product stories using a video or product images—up to 50 at a time—thus driving the consumer to click and buy.

But how do retailers know if consumers are going to take interest in their ads? According to a survey commissioned by CPC Strategy and conducted by Survata, retailers need a firm understanding of how consumers feel about ads in the first place. Among 1,500 Facebook users who participated in the survey, 54.6% said they feel positive or indifferent about the ads on the platform. More importantly, 47.4% of participants reported that they were introduced to a new product or brand on Facebook in a 30-day period and they could remember what it was.

While this is positive news for retailers, it still leaves a problem with the follow through of actually making a purchase. The survey states that of 33.9% respondents who reported clicking on a Facebook ad in the past 30 days, only 13.5% actually made a purchase. Regardless of this low rate, Facebook is still the only advertising platform that continues to auspiciously reach all types of consumers at every point in the purchasing process. Whether or not Collection will raise the follow through percentage remains to be seen.

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