Impact of Social Media Ads on Massive Online Transaction

by GDP Venture

Facebook and Instagram nowadays have transformed, from a simply social media to an advertising media platform. Their contribution to the online transaction is huge, mainly in the country where both platforms has a large and massive user-based like in emerging countries, Indonesia for example. On a recent survey from DailySocial, it said that Facebook has the highest impact to drive the respondent to do online shopping and follows by Instagram and Google. Facebook Ads lead the position with 38%, while Instagram Ads 24%, and Google Ads 15%.

Most of Facebook revenue itself came from advertising. Last year, its revenue reached $17,928 million. Facebook’s ownage in advertising world simply works because it has so much informations about its users that can more effectively target the ads to those relevant. In March 2016, Facebook announced there were three million active advertisers with more than 70% from outside the US.

On Facebook Pages for brands or products, some companies have reported had CTR as high as 6.49% for wall post and a study found that video ads on Facebook is more engaging because there are 40% of users viewed the entire video, while the industry average was 25% for in-banner video ads. The impact of it to drives people to do online shopping became greater in the country which had large user based. This same goes as Instagram based on JakPat recent study.

Prior to e-commerce ecosystem in Indonesia started to form, people are selling through social media platform like Facebook, Instagram, BlackBerry Messenger, etc. This is other reasons why two of the most popular social media platforms in Indonesia had much more impact in advertising.

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