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Retailers that want to advertise on Facebook can now use PayPal to pay for ads as well as virtual content for online games on the social networking site.
Companies that want to advertise on social networking site Facebook now can use PayPal to pay for the ads, under a deal that seems likely to benefit small international firms.
Advertisers can use PayPal, the online payment service owned by eBay Inc., to pay for Facebook Ads. Similar to ads offered by Google, Facebook Ads is a self-service tool that uses IP addresses and keywords to target consumers.
Advertisers can target people based on things such as location, age or interests, which makes ads more relevant to the more than 400 million Facebook users worldwide,” a Facebook spokeswoman says. “People can also engage with Facebook Ads as they would with other things on the site. For example, you can RSVP to an event or become a fan of a page through an ad.”
Offering PayPal will especially help business in areas where payment processing can be difficult or expensive, Facebook says. This would especially apply to smaller firms based outside the United States, Facebook says.
The social networking site also will offer PayPal as a payment option for Facebook Credits, through which consumers buy virtual goods, such as components of online games. “People can use Facebook Credits to purchase virtual goods within a small number of games and applications on Facebook platform, as well as virtual gifts sold in Facebook`s gift shop,” the spokeswoman says.
PayPal, which is a unit of eBay Inc., will be exhibiting at the Internet Retailer Conference & Exhibition 2010.