Facebook Credits for Marketers

FUSE Marketing Group

Facebook Credits for MarketersApril 2011

Agenda

1. What are Facebook Credits?2. Social gaming and the virtual

currency economy3. How marketers can leverage

virtual currency

facebook credits

What Are They?

A virtual currency you can use to buy gifts, and virtual goods in many games and applications on the Facebook platform

100 million users

Over 50 million users

What are consumers spending it on?

Why are social games so popular?

*Gamification 101: An Introduction to the Use of Game Dynamics to Influence Behavior, Bunchball, 2010

Game Mechanics Fulfill Human Desires

Real money

FB Credits

Premium goods

Virtual donations for real causes

Buy them directly from Facebook

Purchase them in-game

Expected to make up one-third of Facebook’s revenue in 2011

Buy them in Canada @Walmart or Best Buy

Redeeming your Facebook gift card

Visit www.facebook.com/credits

Enter PIN code

Credits directly applied toFacebook account

* Must be logged into Facebook account

Virtual Currency Stats

Social game players average 43 years in age…. With over 50% being female

Source: 2010 PopCap Social Gaming Research

Source: 2010 PopCap Social Gaming Research

Social gamers are married with children

The virtual goods market continues to rise at a rapid pace…

…fueled in large part due to Facebook’s continued growth

$7,300,000,000: expected global revenue generated by the virtual goods industry

in 2010$2,100,000,000: The projected size of the US virtual goods market in 2011

100,000,000+: The all-time high number of CityVille players

20: percentage of Electronic Artʼs overall revenue generated by digital sales

90,000,000: number of Pet Society virtual goods sold every single day

$635,000: New world record for the single largest purchase in an online game

4,000,000: total number of items in IMVUʼs virtual goods catalog, making it the worldʼs largest

220,000: number of “Summertime avatar baseball caps” sold in Roblox game

By The Numbers

2010′s virtual goods sales according to Tech Crunch

Credits cost $0.10 USD each• Nearly 50% of people who buy Facebook credits buy less than $1 worth

(single transaction)

• Over 80% of consumers buy less than $2.50 worth (single transaction)

• What can you buy? o From seasonal plants at 2 credits to Energy boosts at 3 or a pet for only 5

By The Numbers

Less than 10 credits54%

10 to 25 credits28%

26 to 50

credits8%

51 to 100 credits10%

How consumers purchaseFacebook credits

Source: Facebook

Where’s it All Heading McFly?

Loyalty

Purchase Physical Goods

International Currency…and world domination

Then

Facebook as a social network

Now

Facebook as a social network

and social gaming platform

Tomorrow

Facebook as a social network

and social gaming platform

and a BANK

Why Should Marketers Care?

Opportunities include the ability to:

1. Incent purchase without having to discount

2. Encourage product / service trial3. Strengthen brand / product loyalty4. Cross sell5. Develop a branded loyalty program

a. At a fraction of leading loyalty program costs b. Without the standard limitations (limited

retailers and card holders)

How are brands doing it?

Loyalty Rewards Programs

Gift with Purchase

Gift with Purchase

Discount + Gift with Purchase

Unique Experiences / new content delivery methods

Action Based Rewards

How Can My Brand Use Facebook Credits?

Promotion Based Program

• On a limited time basis (eg. campaign)

Loyalty Based Program

• Long term solution

Reward Actions

• Purchase (single, multiple, cross category, time limited)

• Trial / sample / register• Survey participation• Social interactions (Like

Facebook Page, rate / review product)

• Sales team exceeding sales targets

A Plug and Play Rewards Program

HOW CAN FUSE HELP?

FUSE can help:1. Create2. Design3. Develop4. And Activate…

A digital content rewards solution tailored to your consumer audience and sales objectives

Create a Proprietary branded online rewards store

Music

e-Books

Games

Choose a different digital content format more tailored to your target consumers (also movies, apps, charity, merchandise, coupons)

Or Leverage a pre-existing store shared with other brands

Music

Books

Games

Consumers can choose from a variety of different digital content formats (also movies, apps, charity, merchandise, coupons)

Any Questions?

Thank You

Jeff PontesDirector Digital Strategy

E-mail: jeff.pontes@fusemg.comTwitter: @jeffpontesBlogs: http://bit.ly/CMA_blogLinkedIn: www.linkedin.com/in/yourbrandvoice