Facebook To Start Charging Merchants For Running Offers

Posted Sep 20, 2012

Facebook will start charging company to run Offers on their social network.  This means that they have turned a previously free service into a potential monetization strategy.

Facebook launched Facebook Offers earlier this year to allow retailers and local merchants to send deals to Facebook fans.  Users could claim offers through the News Feeds and redeem vouchers at stores to get discounts.  Facebook will be charging merchants to pay at least $5 on related ads to promote each Facebook Offer to a targeted audience.  The cost will vary based on the size of a company’s Facebook Page.

“We think this aligns incentives nicely,” stated Facebook director of product management for Facebook’s advertising and Pages division Gokul Rajaram. “The best results on Facebook Offers will come from organic distribution plus paid distribution.”

Some of the most popular deals are free appetizers at Olive Garden and a discount at the Aria hotel in Las Vegas.  “The requirement to pay for related ads will focus merchants on who and where they want the offer to reach,” added Rajaram.  Facebook is expanding Offers to online-only businesses as well.  Up until now, Offers was only available to merchants with physical locations.