Social commerce is gaining momentum. Analysts are predicting that commerce from Facebook stores will hit $30 billion by 2015. Businesses of all sizes are building and testing commerce solutions inside Facebook and are looking at how they can turn conversations into conversions. Coke, Barneys, Sears, Pampers, Dove, Sephora, Lands End and many others pages have built “Shopping” Tabs in their Facebook pages. Facebook is launching, local group buying with its Deal platform and going head to head with companies such as Groupon. Facebook Credits will become the mandatory currency for Facebook games and applications as of July 1 2011. Janice Diner takes a look at this growing F-Commerce trend and explores the different commerce models that are emerging in and around this category.
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“If I had to guess, social
commerce is the next area
to really blow up”
Mark Zuckerberg, August 2010
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The Social Commerce market is growing
Turning
fast and estimated revenues are set to US
“Like to Buy”
$30 billion globally in the next 5 years*
F-Commerce
$1.2 Billion is the projected size of the
US virtual goods market in 2011**
*Source: Booz and Company estimate size of Social Commerce Market in 2015
**Source: Inside Social Games, Virtual Goods Market Study
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"Social commerce is a subset of electronic
commerce that involves using social media,
online media that supports social interaction and
user contributions, to assist in the online buying
and selling of products and services".
Wikipedia
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F-Commerce (Facebook Commerce)
is a further subset of social commerce and e-commerce referring to
commerce that is executed on or influenced by the Facebook Platform and
it is not just about e-commerce
F-Commerce is also about content & engagement
We talk about what we buy...
Before While After
We Buy We Buy We Buy
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Retailers Selling in Facebook
J
Lands’ End Max Factor JC PENNY
603,637 Likes 130,686 Likes 1,463,994 Likes
Coca Cola Store
GameStop
16,308 Likes
2,216,373 Likes
ASOS
621,015 Likes
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Exclusive Product Sampling
Chanel’s Facebook
fans were offered the
exclusive chance to
be the first to buy the
new sheer lip-shine
for $32 before it was
launched across the
U.S.
Heinz UK is selling Limited Edition
Balsamic Vinegar Ketchup to
consumers
Pampers sold 1000
packs @ 9.99 in
under an hour.
F-Stores
facebook.com/HeinzKetchupUK - 75,424 Likes
facebook.com/chanel - 3,668,358 Likes
facebook.com/pampers - 638,345 Likes
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Retail Gift Cards
Give a gift instantly to a
friend on Facebook and
your friend can redeem it
online or in store
F-COMMERCE
facebook.com/sears - 388,690 Likes
facebook.com/americaneagle - 4,496,170 Likes
facebook.com/victoriasecret - 13,193,628
Photo Credit: Sears , American Eagle and Victoria Secret Facebook pages
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Invite a Friend to the Movies
Disney Facebook fans bought
advance tickets to Toy Story 3
and invited their friends to join
them
F-COMMERCE
facebook.com/toystory - 20,265,048 Likes
Photo Credit: Disney Pixar Toy Story 3 Facebook page
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F-Commerce with a Cause
Facebook gets its first
non-profit gift catalogue
WWF’s has a full
Gift Center on
Facebook that
allows supporters to
purchase gifts,
make donations and
select a symbolic
animal adoption
from a list of more
than 100 species.
F-COMMERCE
facebook.com/worldwildlifefund - 641,542 Likes
facebook.com/breastcancer - 291,737 Likes
Photo Credit: World Wildlife Fund Facebook page
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Loyalty, Sharing and Monetizing
Your Starbucks Card
can now be managed
inside Facebook
Loyalty translates into a
21% increase in how
much money was
loaded onto cards last
year with that number
hitting $1.5 Billion
F-COMMERCE
facebook.com/starbucks - 22,149,644 Likes
Photo Credit: Starbucks Facebook page
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F-Commerce - Booking Engine
Delta was the first airline to
offer a flight booking engine
within Facebook
Flight Network, Virgin UK Trains,
Malaysia Airlines, Carnival Cruises
enable booking direct in Facebook
F-COMMERCE
facebook.com/delta - 140,704 Likes
Photo Credit: Delta Facebook page
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OPEN GRAPH
Helping customers connect where they buy
Facebook Open Graph
Facebook influenced commerce on
e-commerce websites with Like,
Share, Recommend and Facebook
Connect
Photo Credit: Levis.com
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• 10,000 websites integrate with Facebook each day
The Like button shares the page
• More than 2.5 million websites have integrated with you are viewing with all your
Facebook friends on Facebook.
In Over half of 2.5 million websites integrate the Like Button
• 1 year the 25 fastest growing Comscore U.S.
retail sites use Facebook
• On average, media sites using the Like button see
The Send button is more
a 3x increase in referral traffic from Facebook
private. It works more like an
email to share content with
specific friends or groups.
The Social Layer - Extending Beyond Facebook.com
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People who click Facebook “Like’s” are more engaged,
active and connected then the average Facebook user
Looking at data from 12 weeks in
aggregate, Eventbrite found that each social
media share equates to $1.78 in ticket sales
FANS CONSUME VALUE OF A FACEBOOK USERS INCREASED
MORE PRODUCT SHARE BOUGHT MORE SALES
A Coca-Cola Fan consumes A share on... Over Black Friday weekend, American Eagle added the
two times more product than Facebook equals $2.52 20% of transactions came “Like” button to every product
a non-fan and purchase intent Twitter equals $0.43 from the Facebook store and on their site and found,
of a fan is ten times higher linkedIn equals $0.90 the transactions were 7-10% Facebook referred visitors
then that of a non-fan e-mail equals $2.34 bigger than on site shopping spent 57% more money than
non-Facebook referred visitors
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My Facebook Info
Instant Personalization
Permission screen to access 1. About Me
your personal Facebook Info 2. Activities
3. Birthday
4. Check-Ins
5. Education
6. Events
7. Groups
8. Hometown
9. Interests
10. Likes
11. Location
12. Notes
13. Photos
14. Photos Tags
15. relationships
16. Website
18. Work History
19. Contact Info
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Connect with Facebook Integration
The power of personal recommendations
By using Facebook's social data into
its own Amazon recommendation
algorithm, Amazon can make even
better personal and friend
recommendations
The Social Graph - more incentive to buy
Facebook Connect enables consumers
to bring their friends and their friend’s
information into the Amazon
experience. Amazon give’s consumers
more reasons to buy
Amazon - Facebook Connect
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Connect with Facebook Integration
Plan the best trip of
your life with help
from your friends
When you visit TripAdvisor while logged into Facebook, the site will act like your “personalized travel
planner, complete with friends’ reviews, a map showing places friends have visited, and a list of their
most popular destinations.”
TripAdvisor - Instant personalization
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FACEBOOK CREDITS
• 53% of Facebook users play games
• Facebook takes 30% on all
Facebook Credit transactions within
Game applications
• $1.2 Billion is the projected size of
the US virtual goods market in 2011*
Facebook Credits Mandatory for Game Developers
*Source: Inside Virtual Goods: The US Virtual Goods Market 2010 - 2011
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Facebook Credits with marketers
Facebook Credits for a Cause
CityVille game players raised 2.5 million for Japan
In-Game Branded Virtual Gifts
In-Game Branded Virtual City
Watch product videos in-game
for Facebook Credits
Lady Gaga launches
news songs first to
FarmVille players in
Earn 1 Facebook Credit for watching a video inside
GagaVille
the Facebook games like Happy Aquarium
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Facebook Credits as Incentives for Shoppers
pre-paid Gift Cards that can be purchased at major retailers in the U.S., Canada and the U.K.
Earn Facebook
Credits for checking-in
at retail locations, at
participating retailers
like BestBuy, Macy’s,
American Eagle
ifeelgoods is the first platform to allow retailers to offer
Facebook Credits as an incentive in their online stores
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Use your Facebook Credits to Watch a Movie
Warner Bros, the first Hollywood studio
to offer movies direct on Facebook
30 Credits = 1 Movie = $3
40 Credits = 1 Movie = $4
Millions of Facebook users are
using Credits to pay for virtual
goods inside games like CityVille
and Mafia Wars, it seems like a
logical step to use the Facebook’s
currency to pay for movies
Facebook Credits
http://www.facebook.com/darkknight - 6,495,505 Likes
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Deals launched April 26 in
five cities with the focus on
shared experiences as
opposed to just discounts.
Facebook DEALS - Buy Real-World Goods
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Deals launched April 26 in
Consumers pay for Facebook
five cities with the focus on
Deals inside Facebook with a
shared experiences as
credit card, with PayPal, or with
opposed to just discounts.
Facebook Credits, Facebook's own
currency that, for the first time, is
being used to buy real-world
goods.
Facebook DEALS - Buy Real-World Goods
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Individual Deals
Loyalty Deals
Friend Deals
Charity Deals
The race to the future of location-based services
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250 million+ mobile Mazda sold 100 cars with Facebook
Facebook users
Mazda offered a 20 percent discount on all Mazda
MX-5s and the chance to win a Mazda MX-5
Miyako special edition for five months through
Facebook Check-in Deals, as part of Facebook
Places launch in the UK.
Check-in at the Gap for 10,000 FREE pairs of jeans