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Facebook Offers Will No Longer Be Free For Merchants

 2:00 pm on Sep 20, 2012 (gmt 0)

Facebook Inc said it will start charging businesses to run Offers on its social network, turning a previously free service into a potential revenue generator at a time when Wall Street is demanding new sources of growth and profit from the company.

The service has been free, but in coming weeks Facebook will require merchants to pay at least $5 on related ads to promote each Facebook Offer to a targeted audience of fans and friends of fans. The cost will vary based on the size of a company's Facebook pages.

"We think this aligns incentives nicely," said Gokul Rajaram, director of product management for Facebook's advertising and Pages businesses. "The best results on Facebook Offers will come from organic distribution plus paid distribution."

Facebook Offers Will No Longer Be Free For Merchants [reuters.com]



 5:45 am on Sep 21, 2012 (gmt 0)

They HAD to find a way to monetize Pages. Charging consumers is too risky, so they will find more and more ways of charging business.

Those who spend money promoting their FB page instead of their own website (I see lots of ads for FB pages) are trapping themselves: if your FB page is vital to your business what will you do if (at some point) FB start charging just to have Pages? More likely, they will start charging for every promotional service related to it.


 6:55 am on Sep 21, 2012 (gmt 0)

Friends of fans - eeewwwww. Sorry I bought those Nike shoes Grandma, I know you like Adidas.

I see the popularity of Facebook fading, my family members don't ask me when I will join them anymore. The social craze seems to be fading as well, time to cash out!


 3:54 pm on Sep 21, 2012 (gmt 0)

Since Facebook went public in May, the company has been under pressure from Wall Street to show how it can turn its giant social network into a money machine. Facebook shares have lost about 40% of their value since the IPO.

The commerce potential of Facebook, known as f-commerce, has yet to materialize, partly because retailers have been able to feast on a host of free tools on the social network to attract customers.

Tying Facebook Offers to a paid ad service suggests the company is working to change this.


 7:47 pm on Sep 21, 2012 (gmt 0)

I wonder why it took them so long ?
They need to make money to pay for all of their servers etc.


 8:17 pm on Sep 21, 2012 (gmt 0)

What is Facebook offers?


 7:44 am on Sep 24, 2012 (gmt 0)

Yes I have never seen Facebook Offers anywhere.

What is it and where is it ?


 7:52 am on Sep 24, 2012 (gmt 0)

I too never came across any offers by Facebook. I would want to know how can they charge for having business pages on their website. Its very easy to charge money but whether it actually deserves to be paid or not is doubtful.

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