Meta doesn’t want you to go out of its popular mobile apps when you buy something on a whim from Amazon.
Now, you can connect your Facebook and Instagram accounts to Amazon. This way, you can purchase items by simply clicking on promotions in your feeds.
Amazon – Meta Integration, Ads and Revenue
An Amazon spokesperson mentioned, ‘For the first time, customers will be able to shop from Amazon’s ads on Facebook and Instagram and complete the purchase without leaving the social media apps. In the U.S., customers will see real-time prices, Prime eligibility, delivery estimates, and product details on certain Amazon ads in Facebook and Instagram as part of this new experience.’
Meta, is searching for fresh methods to increase its ad earnings following the privacy changes introduced by Apple on iOS in 2021. These changes made it tougher for social media companies to aim ads at users, dealing a significant blow to Meta’s business. Coupled with a challenging digital ad market, this situation led to a 64% drop in Meta’s stock value last year.
However, this year has seen a turnaround for the business, with three consecutive quarters of increased revenue, propelling the stock up by more than 160%. Meta attributes this rebound to substantial investments in artificial intelligence, a key technology that has attracted retailers seeking to deliver targeted promotions to customers.
Meta – Amazon Collaboration
Stuart McMullin, who works as the client solutions manager for e-commerce at Meta, shared on LinkedIn that the new shopping service was a lengthy process with significant importance. His comments were in response to a post from Maurice Rahmey, co-CEO of the digital marketing agency Disruptive Digital, who described the launch as ‘the most significant ad product of the year.’ Rahmey drew parallels to a similar collaboration between Pinterest and Amazon.
Rahmey expressed optimism, stating, ‘While additional details are still limited, this partnership has the potential to be a substantial revenue opportunity for Meta, Amazon, and, most importantly, advertisers.’ Rahmey had previously worked as a client solutions manager at Facebook.
For the past few years, Amazon has been expanding its advertising operations, attracting investment from both large brands and small businesses aiming to enhance their visibility on Amazon’s applications. Amazon recently reported a 26% growth in sales for its online advertising business, reaching $12.06 billion in the third quarter compared to the same period last year.
Through a collaboration with Amazon, Meta can simplify the process for shops to sell products on Facebook and Instagram without having to create customized storefronts within those applications.
Meta shared information about the new feature on Tuesday through a support page called ‘Purchase with Amazon without leaving Facebook or Instagram.’
The page states, ‘For a smoother shopping experience from an ad on Facebook and Instagram, you have the option to connect your Meta and Amazon accounts. This allows you to complete your purchase on Amazon without leaving Facebook or Instagram, providing you with more personalized ads.’
Analysis of Amazon and Meta Partnership
According to Rahmey, Amazon’s online advertising business has typically resembled Google’s, operating on an ‘intent-based’ model where customers use keywords to search for specific items. In contrast, Meta follows a ‘discovery-based’ model, delivering targeted ads to people without them actively searching.
Rahmey highlighted the potential benefits, stating, ‘Amazon can broaden its influence and assist merchants in reaching new customers who may not have actively searched for them. I believe it’s a positive outcome for everyone.’
He pointed out that Pinterest experienced a boost in sales in recent quarters following its collaboration with Amazon.
However, Rahmey pointed out that there are still some uncertainties regarding the partnership. Questions persist about the details of revenue sharing and the process for merchants to select where their ads will be displayed.
He posed the questions, saying, “As an Amazon seller, do I simply check a box that says ‘sell on Meta,’ and it automatically goes live? Alternatively, as a Meta advertiser, can I decide to direct potential customers to purchase on Amazon instead of my website or other stores, for instance?”
Meta and Amazon teaming up makes shopping easier within apps. Despite struggles from iOS changes, Meta’s stock is recovering. The partnership could bring in more money, like Pinterest’s success with Amazon. However, some questions remain about how sellers can use the platform effectively.