Facebook share price: Social media giant launches product ads
Facebook Inc (NASDAQ:FB), has launched a new type of ads that will allow businesses to promote their products more effectively of the social network. “Today we’re introducing product ads, a solution designed to help businesses promote multiple products or their entire product catalog, across all the devices their customers use,” the world’s largest social media company said yesterday in a blog post.
Facebook’s new tool will be able to automatically deliver relevant product ads to users. Conversely, advertisers themselves can create campaigns targeting certain products to specific audiences. Product ads are customisable, which gives marketers the ability to target the ads at people who visited their website or mobile apps, or target people based on specific interests, locations or others. In addition, marketers will be able to curate the ads as they see fit.
Initial reactions to the new ad tool appear to be positive. Facebook published comments from several advertisers, including US retail giant Target and Shutterfly.com. Target senior vice president Kristi Argyilan said that early results had exceeded expectations, as using the product had led to a 20-percent increase in conversion compared to other Facebook ads. Shutterfly’s chief marketing officer John Boris pointed to a more than 20-percent increase in click through rate, achieved with the help of product ads.
In yesterday’s trading, Facebook shares closed 0.2 percent lower at $75.60, trimming the company’s market capitalisation to $212.32 billion. The stock has fallen 3.1 percent since the start of the year.
According to the Financial Times, the 41 analysts offering 12 month price targets for Facebook have a median target of $90.00, with a high estimate of $107.00 and a low of $65.00. As of February 06, 2015, the consensus forecast amongst 55 polled investment analysts covering Facebook has it that the company will outperform the market. This consensus estimate has been maintained since May 29, 2012, when the sentiment of investment analysts improved from “buy”.
As of 13:58 GMT, Wednesday, 18 February, Facebook Inc share price is $75.60.
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