Facebook is shifting its focus from brand awareness to direct retailing. On Thursday the company release a statement saying it would be trialling a ‘buy’ button beneath sponsored ads on everyone’s homepage.

Mark Zuckerberg

Mark Zuckerberg, founder of Facebook. Photo: www.lifenews.com

Facebook is the world’s biggest online social network. It accounts for 7.8% of all the world’s spending on advertising, making it the largest single advertiser in the world. And it seemed Facebook was content with this role – increasing advertising sales as it increased its audience base.

But the company signalled a shift in its operational goals with the introduction of the ‘buy’ button. Now good and services may be purchased without leaving Facebook. For advertisers this removes one link in the conversion chain: When prospective customers click on an ad it had previously taken them to the business website to buy the product. This gave the customer a little more time to rethink their purchase – which many of them did.

With this link in the chain removed, businesses advertising on Facebook are looking to cash in on impulse buys.

Facebook has already seamlessly made the transition to mobile advertising – posting January/ March quarter revenue up a staggering 82%!

This new technology will, no doubt, only serve to strengthen Facebook’s lead as a major e-commerce company. Analysts predict the company will make $57.8 billion this year from mobile commerce, a full 19% of all the e-commerce revenue in the world.

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