It's one thing to get free airline miles or hotel stays for credit card points, but here's an industry first: free Facebook ads.
Today, American Express and Facebook will roll out a program that allows the credit card giant's Membership Rewards customers to redeem points for ads on the social-media giant's site. The program is primarily targeted at small-business owners via American Express OPEN, but it's also open to millions of other AmEx card holders, says Ed Gilligan, vice chairman at American Express.
"When we ask small-business owners to name their biggest challenge, the answer is always finding new customers," Gilligan says.
The ads-for-points concept could rock both the credit card and social-media worlds. It's the first time a major company has linked social-media advertising with currency for customer rewards. But social-media and small-business consultants warn that it's not for everyone.
"It a boon for Facebook," says Janet Fouts, a social-media coach. "But you can't just throw your money at this and hope it works. You have to have an advertising strategy."
The move also is a win for AmEx, says small-business consultant Hamilton Wallace, because it gives folks an additional reason to use the brand. But, he says, "You have to first ask yourself: Does Facebook advertising make sense for my company?"
While Facebook ads are great for getting folks familiar with your brand, Fouts and Wallace say they're sometimes not as good at getting customers to actually buy a product.
But the power of Facebook is huge. It has more than 750 million members worldwide and is the world's largest social-media platform.
"The number of small businesses advertising on Facebook is growing exponentially every day," says David Fischer, vice president of advertising and global operations at Facebook. And Facebook ads let businesses target the right audience and leverage word-of-mouth advertising via recommendations of friends.
How to earn points — and freebie Facebook ads? Simply by buying stuff with AmEx cards. Each $6,750 spent can be redeemed for $50 worth of Facebook advertising.
"We're simply going to where the customers are," Gilligan says. "That's Facebook."
Today, American Express and Facebook will roll out a program that allows the credit card giant's Membership Rewards customers to redeem points for ads on the social-media giant's site. The program is primarily targeted at small-business owners via American Express OPEN, but it's also open to millions of other AmEx card holders, says Ed Gilligan, vice chairman at American Express.
"When we ask small-business owners to name their biggest challenge, the answer is always finding new customers," Gilligan says.
The ads-for-points concept could rock both the credit card and social-media worlds. It's the first time a major company has linked social-media advertising with currency for customer rewards. But social-media and small-business consultants warn that it's not for everyone.
"It a boon for Facebook," says Janet Fouts, a social-media coach. "But you can't just throw your money at this and hope it works. You have to have an advertising strategy."
The move also is a win for AmEx, says small-business consultant Hamilton Wallace, because it gives folks an additional reason to use the brand. But, he says, "You have to first ask yourself: Does Facebook advertising make sense for my company?"
While Facebook ads are great for getting folks familiar with your brand, Fouts and Wallace say they're sometimes not as good at getting customers to actually buy a product.
But the power of Facebook is huge. It has more than 750 million members worldwide and is the world's largest social-media platform.
"The number of small businesses advertising on Facebook is growing exponentially every day," says David Fischer, vice president of advertising and global operations at Facebook. And Facebook ads let businesses target the right audience and leverage word-of-mouth advertising via recommendations of friends.
How to earn points — and freebie Facebook ads? Simply by buying stuff with AmEx cards. Each $6,750 spent can be redeemed for $50 worth of Facebook advertising.
"We're simply going to where the customers are," Gilligan says. "That's Facebook."
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