Facebook says 500,000 pages use Promoted Posts, 42M users claim Offers
Facebook shared new statistics about some of its latest products for business pages today on its fourth quarter earnings call, including that nearly 500,000 pages have used Promoted Posts and 42 million users have claimed an Offer.
COO Sheryl Sandberg said revenue from local businesses was strong in Q4 2012, with the number of local businesses paying for advertising on Facebook doubling since the beginning of 2012. Sandberg says this is in large part because of Promoted Posts, which make it easy for businesses to buy ads directly from their pages instead of the more complicated ad dashboard. This product rolled out in June, and by December 300,000 pages had promoted 2.5 million posts. Now Facebook says nearly 500,000 pages have tried the offering, and about 30 percent are first-time advertisers on Facebook. More than 70 percent of pages who have tried Promoted Posts have become repeat customers, Sandberg says.
Then there are Facebook Offers, which are a type of post that pages can use to drive interest and sales for their business. In September Facebook began requiring page owners to spend a minimum of $5 or $10 per Offer, with the option to pay more to promote the deal and reach a larger audience. As with Promoted Posts, costs can vary by page, however the first Offer a page creates is free. Sandberg says costs per redemption for Offers compare favorably to those from email, newspaper, paid search and display media based on data from the Direct Marketing Association. Sandberg didn’t say how many pages have tried these offers, but 42 million claimants is significant. In October Facebook said the majority of users who claim an Offer on the social network do so after seeing a story about it from a friend, not the original page post, indicating the viral nature of the promotion.
Facebook today reported $1.59 billion in revenue for the fourth quarter of 2012 ended Dec. 31 — a 40 percent increase from the $1.13 billion reported in Q4 2011. Revenue from advertising was $1.33 billion, representing 84 percent of total revenue and a 41 percent increase from the same quarter last year.