How to monetise your Facebook presence

Joel Davis, agency:2

Mon, 01-08-2011 08:08

Social networks are becoming increasingly business minded. Facebook has always been a platform that has been aware of the commercial possibilities that it offers – and throughout the last year it has added features that show an understanding of the needs and interests of brands across industries. 

The emergence of Facebook Deals, Facebook Credits and Facebook Commerce are all evidence of the platform’s willingness to offer brands opportunities to monetise their presence on Facebook:

Facebook Deals
The launch of Facebook Deals is part of a growing trend where consumers increasingly use their mobiles instead of credit cards. It lets users 'check in' to venues via the Places feature on the Facebook mobile app. For example, through Deals, the first 30,000 Facebook users to check in at Starbucks stores in the UK could claim a free coffee. In this way, Facebook Deals provides brands and retailers with the opportunity to give fans offers and promotions directly when they Check-In near their store using their phones.

The benefits are clear:  brands can use Facebook Deals as a virtual loyalty card or coupon system. Since its  launch in January 2011, it has attracted a host of big name brands such as the aforementioned Starbucks, Argos and O2.

However it can also benefit smaller businesses, who sometimes find it difficult to see the benefits of having a Facebook presence. Deals provides them with a scalable, manageable, low cost way to offer discounts and encourage people to visit their store.

Facebook Commerce
There’s a real feeling among a lot of people in the industry that F-commerce, as it has been named, is the second online commerce revolution. You can now rent films, book plane tickets, make donations to charities, purchase clothes and even buy Tomato Sauce – all through branded Facebook Store tabs.

The rise of F-commerce has transformed Facebook Pages, allowing brands to not only engage with fans but also sell to them. Brands can create a store within a Facebook tab, creating a retail environment that never takes the user away from Facebook. This provides brands with a huge captive audience.

Alternatively brands can utilise ‘Facebook-Facilitated On-Site Selling’ which allows them to use a social plug-in to bring the Facebook experience to their websites. Using Facebook’s Open Graph API to retrieve the Likes and interests of the user also means brands can tailor their website to the user’s interests.

Facebook Credits
On July 1st 2011 Facebook Credits became the mandatory virtual currency for buying virtual goods in games and apps on Facebook. And, even though Facebook seems to be content working at this level at the moment, the growth potential of Facebook Credits is huge.  It has already been used by brands like the BBC to pay for content.

The next step in Facebook Credits' growth could be to embed a 'Buy with Facebook' button on every online retailer's website so Credits becomes the currency to be used across the entire web, providing a fully integrated e-commerce solution. 

Facebook monetisation – the bottom line
A crucial part of any brand’s business strategy is obviously to monetise their social spaces. It also makes complete sense – it allows you to take your company to where your customers are.

There are more than 30 million people on Facebook in the UK alone (out of a global potential of over 700 million). The rise of monetisation opportunities such as Facebook Deals and F-Commerce means Facebook now provides a tangible difference to a business’ bottom line.

Joel Davis is the founder and Director of the UK’s first social media agency, agency:2. From its founding in 2007, Joel oversaw the agency’s growth to its emergence as a truly global business, leading brands like SAS, Barclays, Dow Jones, Disney and Microsoft into the social media arena with a range of highly successful campaigns. agency:2 is a founding member of the DMA’s Social Media Council.