Hessie Jones

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  • The Future of F-Commerce: The Market Destination or Social Futiliy?

    Hessie Jones, June 29, 2012

  • E-Commerce is going to explode !


    As of 2011:

    179 MM consumers 14+ research products online 83% purchased online 18-29 YO citing Internet as main source doubles 3 major sources of growth: mobile, social commerce and daily deals

    FIRST BUILD: In 2010, US retail ecommerce sales (excluding travel) rebounded from the recession, posting 14.8% growth, compared with only 1.6% growth in 2009. In 2011, online sales will reach $188 billion, but growth will drop to 13.7%, resuming a prerecession trend of slower growth that signals a maturing sales channel. Still, online sales are expected to rise by over $100 billion from 2010 to 2015.

    SECOND BUILD: More Americans now get news primarily from the Internet over traditional news sources; 83% have purchased online

    the number of 18-29-year-olds citing the Internet as their main source of news has nearly doubled since 2007. Even more pressing to marketing leaders purchase intent is influenced more than ever by both positive and negative online reviews. Three major developments will spur this growth: mobile commerce, social commerce and daily deal sites.

    LIKE: One thing is certain: social business is no longer optional.

    Q2 2011 U.S. retail e-commerce spending grew 14 percent over the year prior, to $37.5 billion, according to comScore. It was the seventh consecutive quarter of year-over-year growth.eMarketer credits social commerce, mobile commerce, and daily deals sites with the continued growth of the online retail space. They predict over $100 billion in annual online retail sales by 2015.

  • It is widely contended that F-Commerce transactions will exceed Amazons annual sales over the next 5 years.


    FIRST BUILD: Amazon is the undisputed leader in e-commerce, raking in over $40 billion annually

    Mike Fauscette, an analyst at research firm IDC, has an even bolder prediction: In three to five years, he suggests, 10 percent to 15 percent of total consumer spending in developed countries may go through sites such as Facebook.

    On Facebook transactions that are fueling FB commerce

    Open - Graph --- this Frictionless Sharing ---- thats whats earning Facebook its early wins!!!!

    SECOND BUILD: AS of TODAY: Facebook deals GONE

    Facebook Deal check -ins GONE



    FRICTIONLESS SHARING: Open graph allows third party apps to include arbitrary actions and objects

    user: WATCH, BUY, LISTEN, read

    - news item, movie, jeans, song

    shows up on my NEWSfeed, timeline and Ticker



  • Vevo is pulling its music video content from Youtube and shifting to Facebooks Open Graph!

    200% increase in daily registrations since the change to Facebook-only registration600 percent increase in published actions on Facebook from February to March130 percent increase in referrals from Facebook to VEVO from February to March60 percent of Facebook referral traffic comes from Open Graph storiesUK Stats: 177K monthly video streams in January, 23% more monthly viewers

    By telling you exactly what Ive done, Facebook is piquing your interest to click and interact.

  • Viddy is attracting celebs like Snoop Dog since its integration with FB Open Graph!

    Integrated with FB in February 20121.5 million joined Viddygrowth from 60K to 920K MAU2X increase in average daily sign-ups with Open Graph9MM Viddy interactions on FB90% of new users join Viddy through FB 45% of all uploaded videos are shared through FB

    Viddy the instagram for video

  • ... If we fail to maintain good relations with Zynga, we may lose a significant Platform developer and financial results may be adversely affected

    Facebook 2011 Revenues 3.7B

    85% from Advertising 12% from Zynga


    First build:

    On July 1, 2010 Facebook began requiring social game developers to use credits as their form of payment on Facebook, and Facebook takes a 30% cut of all Credits purchases,

    Overall, virtual goods make up a $1.6 billion (and growing) market in the U.S. alone, and the vast majority of that sum lies solidly in social gaming, the stronghold of Facebook Credits.


    Total revenue for last year was $3.7 billion, Facebook's filing said, representing a near doubling of 2010's revenue of $1.97 billion.

    $4.27 billion this year.

    LIKE: GOOD FOR Facebook, its realizing revenue.

    TITLE BUILD: However, on the credits side --- the conversion has predominantly come from Games. -- 3% from other sources

    Facebook lists its relationship with Zynga in its risk factors section of the S-1:: If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected.

    We believe that Credits can and will fund a variety of monetary interactions on Facebook beyond social games, eMarketer analyst Debra Aho Williamson told VentureBeat. Ecommerce is one example, as is buying access to media such as TV shows or movies

  • Turn FB Credits into a payment system for all goods within Facebook


    FIRST build: FB made it clearthat it wants to turn its virtual currency into a payment mechanism for all sorts of digital goods.

    SECOND BUILD: Warner started testing: they would allow Facebook users in the United States to rent the film The Dark Knight directly on the Page

    Like other Hollywood studios, Warner is racing to figure out how to deal with three significant problems: 1)piracy and 2) plummeting DVD sales, both of which are growing worse as broadband access spreads across the globe. The industrys best hope for a solution is to make more content available for digital purchase on more platforms. 3) But Hollywood is also fretting that certain delivery systems particularly Netflix, with its rapidly growing streaming service are becoming too powerful. If Warners go-straight-to-the-fans Facebook experiment is successful, it could be a way of skirting those middleman distributors.

    For now, Facebook is hardly a rival to online movie rental services, and it is not clear if the company plans to become one. It did not specifically help Warner and has not signed a licensing or distribution deal with the studio. DID NOT HAVE A HOLISTIC SOLUTION THAT WOULD BE EASILY ADOPTED BY USERSAnd even if other studios follow Warners lead, Facebook lacks a feature for users to find movies.


  • An economy that walls itself off from the rest of the world is doomed to failure

    Facebook credits are exactly that FACEBOOK CREDITS. They are controlled by facebook, can only be sourced from facebook approved locations and are held onto your facebook account by facebook.

    xxx does not have the ability to do what you want as facebook doesnt allow it.. If you go to the facebook faq section on credits it specifically states that credits are not transferable to another account...

    What you want wont happen because facebook wont allow it to happen..


    FIRST BUILD: FOR FB, THE CREDITS are systemic of this notion of a an ever expanding walled garden.

    Autocracy: for of govt.

    Autarky is the quality of being self-sufficient. Usually the term is applied to political states or their economic systems. The latter are called closed economies.

    SECOND BUILD: this statement says it all.

    The idea of Facebook Credits is to provide a virtual currency that works only within the boundaries of Facebook. You can purchase Credits for $0.10/Credit, though you cant currently sell them back to Facebook for dollars.

    Why is this a good idea for Facebook? Why dont they just use cash, or a service such as PayPal or Amazon, to manage payments? The secret is in the fact that you cant turn Facebook Credits back into dollars when youre done with them. What Facebook wants to do is to wall off your money from the outside world to turn it into a currency that can only be used inside Facebook. That way, youll be forced to buy products from within Facebook, expanding its market and driving up demand within the closed ecosystem.

    TITLE BUILD: read and UNLIKE:

    For Facebook, the benefit of this sort of system is the ability to control the flow of capital and goods inside the boundaries of the closed system. Also, there is the potential to manipulate the currency artificially

  • BREAKING NEWS: Facebook shifts approach to payments!

    Changes encourage companies beyond game developers to sell their wares on the Facebook platform:

    Facebook users will be able to subscribe to services that require monthly payments.Users will also be able to pay for things on Facebook in their own currency, rather than credits.




    FB signaled its ambitions to grow as a payment platform, with changes to how its users can buy goods and services without leaving its site. This is a clear indication to Wall Street that FB is pushing to mak