Facebook Inc (NASDAQ:FB) is making changes to its revenue strategy so that it can generate more revenue through changing technologies. This time, the company is planning to transform users into buyers.
The social network giant is getting into contextual commerce which allows the sale of goods and services through platforms such as Messenger without disrupting conversations with users. A good example of such a strategy used by marketers is the ability of users to purchase flowers via 1-800-Flowers.com. Users can place orders for flowers through Messenger without having to exit the app thanks to an artificial intelligence bot system incorporated into the app.
Facebook charges higher rates to advertisers in exchange for better communication with clients. The company’s CEO, Mark Zuckerberg, stated that such a strategy would significantly improve the company’s social network platform. The company made advertising revenue of $17 billion in 2015, but the amount charged to marketers for every click has been declining.
Facebook has particularly been planning to cash in on revenues earned by game makers who host their titles on Facebookâs social media platforms. This is because Facebook allows users to purchase some content and this strategy is similar to that used by Tencent Holdings through the WeChat messenger.
Facebook is one of the numerous tech companies venturing into financial transactions on mobile and online platforms. Facebook announced its entry into Payments through its Messenger app some time back, and it is now becoming clearer to partners and advertisers how the firm intends to lay out those plans. In 2015 the firm introduced the ability to hail rides and peer-to-peer payments through the Messenger app. The company recently started to launch chat bots which aim to exploit further uses of the platform.
