Call-to-Action Buttons May Give Boost to FB Stock

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This week Facebook Inc (FB) launched several new call-to-action buttons for its Pages system. All in all, the move looks like a winner and could lead to new revenues streams — perhaps giving FB stock a boost.

Call-to-Action Buttons May Give Boost to FB StockKeep in mind that Facebook Pages allow businesses to setup their own online presence. In fact, there are more than 30 million small businesses (which update their page at least once a month) on the platform as well as many of the world’s major companies like Toyota Motor Corp (ADR) (TM), The Coca-Cola Co (KO) and Proctor & Gamble Co (PG).

For the most part, these businesses often try to encourage more and more Likes, which allow for increased reach and branding. No doubt, these efforts have also helped to keep FB stock moving higher as the company user count has continued to grow at a nice pace.

As for the new Facebook button program, there are seven options for businesses: Book Now, Contact Us, Use App, Play Game, Shop Now, Sign Up and Watch Video.

These will be available in the U.S. within the next couple weeks and then there will be a rollout across the world next year. Each Facebook button will also appear at the top of the page, at the left side of the Like button.

The good news for FB stock is that the new buttons should provide  lots of potential for cranking out various revenue streams. The Use App and Play Game can leverage the company’s massive mobile infrastructure, which results in fees for downloads. This has actually been a key driver for revenue growth during the past couple years.

The Video Facebook button should also be a nice driver. Consider that the company has recently introduced its ad system for videos.

Yet perhaps the two most interesting buttons that could help improve FB stock include Shop Now and Book Now. Let’s face it, the company has had a miserable time with e-commerce, as seen with the shutdown of its Gifts system. But by tying in a Shop Now button to a business page, there will likely be a seamless experience to pump up transactinos.

As for the Book Now button, this will allow users to reservations, such as for a restaurant. Basically, this is a move into the valuable local ad market, which is led by Yelp Inc (YELP). And the potential is huge. The total amount spent on local ads in the U.S. is expected to reach a whopping $145 billion by 2016. No doubt, FB stock could get a nice lift if there is success in this category.

Already Facebook has increased its efforts to boost its revenues from its Pages business. Consider that the company recently changed its algorithms to reduce the distribution of time-line posts. In other words, businesses will have to buy more ads to get much more exposure.

All this sounds pretty good, right? Definitely.

Yet these efforts have not gotten much attention, at least compared to the ramp up of monetization for video ads and Instagram.  But the Pages business could provide additional fuel for growth — and help make FB stock another winner for investors in 2015.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli.  As of this writing, he did not hold a position in any of the aforementioned securities.

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Tom Taulli is the author of various books. They include Artificial Intelligence Basics and the Robotic Process Automation Handbook. His upcoming book is called Generative AI: How ChatGPT and other AI Tools Will Revolutionize Business.


Article printed from InvestorPlace Media, https://investorplace.com/2014/12/facebook-fb-stock-call-to-action-buttons/.

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