Facebook Gifts could be more significant than you think

At first glance, the launch of Facebook Gifts may not seem to be the most exciting story to come out of Facebook recently, but it could be very...

At first glance, the launch of Facebook Gifts may not seem to be the most exciting story to come out of Facebook recently, but it could be very significant for the future of the network. In fact, Facebook shares immediately jumped 6% after the company launched the initiative.

We have seen Facebook gifts before, but the previous incarnation involved sending worthless digital teddy bears and rubber ducks. Unsurprisingly it didn’t take off. This time, however, hundreds of physical goods are up for sale and can be sent either from birthday reminders or friends’ timelines. Your friend will be notified immediately and you don’t even need to know their address. As with Facebook ads, gift suggestions will no doubt be targeted depending on your interests and profile information.

This is likely to give Facebook a nice revenue boost, but one of the big advantages is that they will collect thousands more user addresses and credit card details. Once a user does this, it will make it much easier for them to spend more money on Facebook in the future. Facebook could finally be cracking F-commerce?

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2 comments

  1. wishgenie Reply

    Having seen results in f-commerce so far be very hit and miss, it’s understandable that Facebook are making a new attempt at monetizing their social audience.

    Social gifting definitely looks set to be be the next ‘big thing’ in social media, but whether or not users will take to gifting through Facebook’s platform remains to be seen. Like you say they’ve tried and failed before, so it’ll be interesting to see the results this time around.

    1. Jez Taylor Reply

      I think that Facebook’s targeting ability is what’s going to work well for them here. With all the data they have about us, they have a pretty good idea about what we’re interested in and even what our budget is likely to be. Couple that with the fact that the process is so streamlined you don’t even need to know your friend’s address and this is ideal for impulse buying.