Facebook is testing a new product that is potentially a new source of revenue for the social networking giant. This product, called 'Highlighted Posts' potentially also builds a crossover for the company onto an online classifieds platform. As is common knowledge, the currently dominating website in the online classifieds section (variable by country, however) is Craigslist. What Highlighted Posts does is that it lets users make their status updates more prominent for a small fee. According to a New Zealand blog, called Stuff, a Facebook representative said that the feature is being tested with a small percentage of users right now. The fee for using the service to amplify your posts can range anywhere from offering it for free to a couple of bucks.
Pay for a more 'important' status update
According to Mashable, the Facebook representative also said that users who would utilize the Highlighted Posts feature, include bands who want to promote an upcoming gig as well as any user who would want to sell their car. Facebook had previously launched a feature where users selling their stuff could advertise and let their friends know what price they were selling at, as well as add pictures of their stuff. However, this sort of paid advertising done by users themselves is new ground for the social network. What exactly happens to the amplified status is currently unknown and how Facebook would guarantee that a large percentage of users would see an amplified status is not clear. It is likely that brands would get on board to purchase Highlighted Posts as a new form of web advertising. The representative made it clear though, that Highlighted Posts is one of the many products the company is testing right now.
Facebook's IPO is still scheduled for later this month and the company filed an amended S-1 form on Wednesday, which stated that their advertising growth has not kept up with its expanding number of users. If Facebook's Highlighted Posts feature is successful and gains significant traction, the social network would enter the online classified market which the IAB valued at $2.6 billion in 2011. Would you pay Facebook to amplify your status update? Let us know in the comments section below.
Published Date: May 12, 2012 11:10 am | Updated Date: May 12, 2012 11:10 am