Facebook recently announced Premium On Facebook, which is their latest strategy for delivering an advertising platform on the world's largest social network. One of the big new features is the "Logout Page ads" which displays a massive ad when a user logs out of their session. This isn't the first time this sort of advertising has been seen and has been on many of the smaller sites all over the internet for years. I do believe though that FB is going after revenue generation incorrectly. Paid advertising obviously makes money, just ask Google, and with 800 million users floating around advertisers are more than willing to take a punt on the platform. However, my opinion on the matter is that as more and more people spend more and more time on Facebook they will be more and more willing to perform all their activities on the single platform. It's the one thing that Google has been pushing for but Facebook is uniquely poised to achieve, and that's making the WWW "disappear" and replacing it with a single point of browsing. There are millions of people whose only interaction with the internet is via Facebook. They don't know how to send email, shop or even search but they can go on Facebook and comment on photos! With this sort of platform already in place, a smart FB would make it easy for customers to shop. Everyone seems to think that this is an insane idea, you go to Facebook to be social not to shop. True, I'm not advocating that you put the shopping experience directly in the user's face, but if you provide a platform for users to be able to purchase items based on the social interactions of the people they trust and respect, aka, their friends, they will be more than likely to buy quickly.
Here is the way I think the platform should go:
- Create an ecommerce platform that aggregates products from business all over the net, similar to Amazon
- Provide a single click pay platform similar to the Apple App Store, get rid of FB credits!
- Utilise social graph data to deliver shopping recommendations in current ad spots
- Capitalise on gifting and deliver social and group gifting
- There will only be one store front and businesses paid on a CPA basis as well as a percentage of clicks to ads for their products
Most people seem to disagree with me on this option but I do believe that if Facebook puts this platform in place now they will continue to build on their existing revenue base and take significant market share away from the likes of Amazon and Groupon while giving the big G a massive kick in the gut as well by reducing the dependence on external search.
What do you think?