Through this strategic step, FB is trying to tap the fast growing economies of Asia as other markets are largely saturated.
Social media giant, Facebook Inc. has disclosed that it will allow small businesses in emerging markets to sell their wares directly to customers through their Facebook pages for free.
This strategic step marks its first foray to ramp up advertisement revenues from potentially new advertisers in these rapidly evolving regions.
Last year, Facebook had launched a service which allowed some merchants to sell items through paid ads on its app. However, this latest service will be totally free of cost to small merchants who will be able to sell their wares through their respective Facebook pages.
The idea is to make small sellers more reliant on their Facebook page and in time migrate them to become paying customers.
“If a business is seeing value from their page, there is a higher opportunity that they could be an advertiser,” said Benji Shomair, product marketing director of Facebook Pages.
Although Facebook has about 3 million active advertisers, with this move, it is wanting to tap into the 60 million business that are available worldwide that use its services.
With the help of just 3 million active advertisers, Facebook’s stock hit its all-time high, the potential for more growth is enormous. Incidentally, Facebook has 1.7 billion monthly users worldwide.
Although Facebook is registering its fastest growth in Southeast Asia the bulk of its money making is done in Canada and in the United States. For the second quarter, Facebook has reported an average revenue of $13.74 per North American user. In comparison, its average per user revenue from the Asia Pacific region is $1.74.
However, with the Western market largely saturated, it is now wanting to tap Southeast Asia to increase its broad user base as well as advertising dollars.
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