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BizReport : Advertising archives : August 04, 2010

New Facebook ads may display friend reviews, ratings

The folks over at AllFacebook have unearthed some interesting developments afoot in the Facebook advertising camp. A trial is currently underway of ads on Facebook that include the name of a friend who has reviewed the advertiser along with their review and a star rating.

by Helen Leggatt

like button image.jpgFacebook's "Like" button has already been shown to increase CTRs on some ads but it appears the social networking site is taking the sharing element of advertising that one bit further.

Reports confirm that a "really small, experimental test" is underway of ads that display friends' reviews and ratings within the creative.

The effect could be enormous. Think about it - advertisers proclaim their products to be "the best", "the cheapest", "the tastiest". These claims are expected and generally wash over most people. But what if an ad for, say, a liquor store is annotated with a review from a friend saying it is the cheapest and rated 4 stars? That will surely be a far more powerful message than one from an anonymous advertiser.

"We predict that including the star ratings will significantly increase the ad CTR by another order of magnitude, provided that the rating is 4 stars and above," writes Dennis Yu of BlitzLocal on the AllFacebook blog. "The same we've seen true when users see an application's average rating on the install screen."

Tags: advertising, Facebook, social network

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