SocialWire, which is an advertising platform on Facebook, thinks that its combo of organic sharing and paid advertising results in an interesting offering for marketers, according to the blog AllFacebook. Investors of the ad platform seem to agree, as they have already investing $2 million in seed funds.
First Round Capital, Dave McClure, Brian Sugar, Ariel Poler and the Director of MIT Media Labs, Joi Ito, have all participated in the initial round of funding for the project. The project includes SocialWire Amp and SocialWire Connect. One of the clients with SocialWire is men’s apparel company Bonobos. The Chief Revenue Officer, Bob Buch, and CEO, Selcuk Atli, spoke to AllFacebook about the program.
They both noted that the goal was to come up with an ad platform that worked like a recommendation engine, using content provided by Facebook users on open graph actions instead of traditional ads on Facebook.
Buch told AllFacebook the following:
“One of the biggest differentiators in the market — it’s becoming more and more of a crowded space — one of the things we’ve done differently is combine a product for Facebook organic growth with a product for Facebook paid growth, boosting organic growth with paid media not with promoted posts, but by integrating open graph sharing across the site.”
The content in the ads is created by the clients of SocialWire along with the actions that Facebook users take while using the social media site. The ads from this program are not purchased through Facebook but instead through the ads application-programming interface on Facebook.
The information provided by Facebook users is known as action spec sponsored stories and these allow advertisers with contextual advertising. These types of ads can help lead to better click-through rates and conversions because users on the site are more likely to click on website links provided by their friends that come with personal messages instead of clicking on regular ads. “Your shoppers are doing the work,” Buch added.
In a press release, Atli said the following:
“There is so much more to Facebook marketing than building fan pages and paying for likes. It’s now time to harness the real power of Facebook open graph for user acquisition.
When an action is shared on Facebook, typically, fewer than 12 percent of a user’s friends see those actions. SocialWire Amp lets marketers promote those actions to all a user’s friends, and control the targeting, timing, and device: desktop or mobile. These ads appear on Facebook news feed and drive users directly to the advertiser website. This is an evergreen advertising channel that requires minimal effort to create and maintain for marketers.”
Buch also said the following:
“SocialWire Connect is like search-engine optimization for Facebook. Integrating SocialWire Connect enables sites to turn any action — such as a purchase, wish list, or product review — into a story shared on Facebook that drives traffic back to the site in a contextual way. We have created a best-practice implementation of Facebook open graph for online marketers, which offers built-in privacy controls to end-users so nothing is shared without their permission.”Facebook Rolls Out SocialWire by Harrison Barnes