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Facebook Credits is expected to advance beyond simply virtual goods...look at how Facebook Credits can be used to create your own proprietary loyalty program and how the currency may eventually form the foundation of the future Facebook Bank
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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: [email protected]: @jeffpontesBlogs: http://bit.ly/CMA_blogLinkedIn: www.linkedin.com/in/yourbrandvoice
