Facebook is planning to offer free $50 advertising credits for up to 200,000 small businesses. When a user clicks on an ad, there will be a set rate for the click-through that the advertiser has to pay. Facebook would pick up the tab for the first $50 under the terms of the offer. “For $50,” Ms. Sandberg claims, “most small businesses can target every single person they need to target at least once, and then they can grow their business from there.”
The strategy is no surprise, given Ms. Sandberg’s background. The former vice-president of global online sales and operations at Google helped build that company’s advertising business, which is anchored by the popular Ad Words.