Facebook Adding New Service called "Gifts"

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This other article from Yahoo.com basically explains that even though people already share so much information about their lives on social networks (specifically Facebook), now Facebook has made a new service where users can buy presents for their friends for any occasion. Facebook rented a warehouse and created its own software to track inventory and shipping. If this idea is successful, it is expected that it will earn more than $200 billion e-commerce market. From there, they want to keep the personal information that people are getting from purchasing these gifts and use it to make targeted advertisements towards certain audiences using the website. Facebook nudges users to buy a gift with a gift-box icon popping up on screen, then they choose which gift they want, pick out a greeting card, and then they ask for their credit card & other personal information. The average purchase so far is $25/person, and since Facebook's main competition are Amazon and Apple, they use the personal information and their users' aquaintances as an advantage for occasions such as birthdays, wedding anniversaries, etc. to promote the gift idea so they are more likely to buy a gift for them around that time. Facebook is thinking about adding "Gifts" to their mobile app as well, since the company said 14% of its advertising revenue came from ads on cell phones. Therefore, this study relates to what we've learned in class because social networking sites are very useful for connecting with their consumers on different levels than just plain advertising can do, and specifically target marketing their audiences with products that they think they will most likely buy based off of their personal information and their "friends" on Facebook.

Link: http://finance.yahoo.com/news/billion-birthdays-file-facebook-adds-011744511.html

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This page contains a single entry by seas0018 published on November 30, 2012 4:31 PM.

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