Yesterday, Facebook announced the arrival of Facebook gift cards, or what they're calling the "Facebook Card." In a nutshell, this is a gift card that a user can purchase to use at stores or stores' websites -- either for themselves or a friend. You know ... a gift card. Pretty standard stuff.
So, who is this for? Should marketers care? How do they work? Why, I'm so glad you asked. This post will answer your questions about the Facebook Card, and whether you should be incorporating it into your marketing strategy.
How Does the Facebook Card Work?
To get a gift card, select a gift for your friend from the Gift Cards & Digital category. We'll pretend we're getting a gift card for a friend to spend at Target.
Select the amount you'd like to add to the card -- in this instance, we're choosing $50. Then you complete your purchase, just like any other online gift card, and your friend will be notified of their gift. In a few days, they'll receive a gift card in the mail (that's right, a real gift card they can hold in their hands) that looks like this:
The card can be used in person or online at the retailer for which you purchased the gift card. The most notable part of this, though, is that one Facebook Card can store amounts for multiple retailers. So if a friend gets you a gift for $50 at Target, the same card can house $100 at Sephora, too. You can go into your Account Settings in Facebook to check your account balances for each store at any time.
Facebook has been rolling the Facebook Card out progressively in the U.S. only, so if you don't see it quite yet, be patient -- you should very soon if you're a U.S. user.
What Marketers Should Know About the Facebook Card
The marketing applications of the Facebook Card are pretty straightforward for any marketer who has an ecommerce shop, or a brick-and-mortar store. Problem is, right now, only four companies are enrolled in the program: Sephora, Target, The Olive Garden, and Jamba Juice. That means even if you're excited about the prospect of using Facebook Cards for your own business, right now, you can't exactly do it.
I think this is because Facebook is still testing out the model, though -- in the past, all they've allowed users to purchase via gift cards were virtual goods within apps, or iTunes gift credit. Ideally, this model in which there's a reusable gift card should get all the kinks worked out of it now, before a widespread rollout to all businesses. And according to the Los Angeles Times, investors are hoping Facebook invests more in commerce in the future. "There are many products in these categories [gift card and reloadable prepaid cards] issued by Visa, MasterCard, and American Express that have more flexibility in where you can use them and where you can reload them, so Facebook is getting into a very saturated space with a limited offering at this point," shared Gil Luria, analyst at Wedbush Securities. To be prepared for it, though, I'd recommend ensuring you have the infrastructure to process payments from major credit cards if you ever hope to use this service, since it appears that these Facebook Cards are using Discover.
Do you think the new Facebook Card is going to see a lot of adoption? Do you anticipate a more widespread rollout in the near future, or do you think this experiment will be a bust?
Image credit: JD Hancock
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Suzanne 9:29 AM on February 01, 2013
Where will the profit be to Facebook for launching this? Will they charge something to the user for purchasing a gift card on Facebook?
Lynn 10:04 AM on February 01, 2013
I like the idea but it will be interesting to see how it will work if the system is tied to the Discover System. It might mean extra expense of carrying that payment option for retailers in the states and virtually non existant ability outside of the states. As far as I am aware Discover isn't available in Canada (I could be wrong...)
Jacob 10:17 AM on February 01, 2013
It says in that screenshot though that the card can't be used at Target.com or Target Mobile. Is that true? Potential shortcoming, for sure. I could potentially see it being useful in cases where you are purchasing gifts for long-distance friends for multiple holidays.
Yolanda 10:26 AM on February 01, 2013
I am wondering. how does this compare to Wrap? would people still use that?
John 10:41 AM on February 01, 2013
As Lynn states it is an interesting idea, but will it work outside the USA and what will be the cost implication to the retailers. And will there be a cost to the purchaser of the card?
Arsenis 11:36 AM on February 01, 2013
Can u help? I can't find where the Gift Cards & Digital category is
Tiana Kai 4:43 PM on February 01, 2013
I'm not sure if I'm loving the fact that the card is tangible and comes in the mail. What if you need a last minute gift and Facebook says 'hey it's Sam's Bday why not get him a FB card at his favorite store?'. Obviously FB knows what store we like based on Likes and interactions... anyway, my point is I may need a card now, not three days in the mail now.
Why not make the gift card a QR code accessible in the FB app, like how Delta has QR codes available for security check in points so that you never need a printed boarding pass again?
Ron Baran 5:06 PM on February 01, 2013
I see it as another way. Facebook will be able to collect data on individuals at the point of purchase, just more data they can use to sell advertising. That kind of data is what will drive online advertising and the RTB process, which is literally a just in time advertisement, targeted to a specific person while they are at a website. Amazing concept run by algorithms and it happens all within a second, but you need to have good data on the prospect.
Nina 11:40 PM on February 01, 2013
Good for face-book! It has advanced from connecting families and friends to helping them pass on quick gift cards!
What is the next thing in the agenda for face-book?
sargon 4:49 AM on February 02, 2013
Good for face-book!
su tesisatçısı 4:55 AM on February 02, 2013
Can u help? I can't find where the Gift Cards & Digital category is
su kaçağı 5:04 AM on February 02, 2013
like the idea but it will be interesting to see how it will work if the system is tied to the Discover System. It might mean extra expense of carrying that payment option for retailers in the states and virtually non existant ability outside of the states. As far as I am aware Discover isn't available in Canada
Michal Simkovič 5:51 AM on February 02, 2013
Dear Corey Eridon. As we can all see this is just another marketing move, on how to facebook helps registered companies that paid for this advertisement, to obtain larger groups of audience through trustworthy recommendations. But do companies really have to pay for marketing, to reach bigger audience? Actually our team is working on cost free marketing plan, that helps to reach bigger audience through trustworthy recommendation from the right people, to create close and long lasting relationship with customers. If you want to find out how this actually works, we are going to be glad if we can help you. Just register on updience.com and see for yourself.
Glad we could help.
Have a great day
Jared 12:50 PM on February 02, 2013
I'm just waiting for them to launch the "Pay with Facebook" as it could be a huge business for them.
seotrainingahmedabad 11:27 PM on February 05, 2013
Nice idea of facebook and hope it good service of facebook.
Kate Roosa 8:53 AM on February 07, 2013
Why isn't Facebook sticking to a mobile gift card platform for its program? Mobile has been the clear trend in the gift card industry for the past few years, so why offer plastic? Stoner Bunting can think of 3 good reasons: http://www.stonerbunting.com/giftcards/blog/3-reasons-why-facebook-is-going-against-the-trend-with-plastic-gift-cards/