Social media is entrenched in all of our lives, but Global Web Index recently published a study that Facebook had lost nearly 31% of its teen users in the United States. The study proclaimed that Facebook is ‘dead and buried’.
Well, that couldn’t be further from the truth. Actually, Facebook reported record revenue growth last year, with an increase of 58% year-over-year to $12.47 billion. And instead of being dead, the social media leader is adding millions of active users each month.
In fact, Facebook is expanding their capabilities. Just last year, a hidden payment feature was discovered deep inside the Messenger app. If activated by Facebook, it will give the 200 million app users the capability of sending money to each other using debit card information, free of charge. It’s even allowing users to save their credit card information on Facebook.
But why would a social media site generally known for photo sharing of pets, kids and weekend parties be interested in storing credit card information? There’s a new battle going on in the mobile payments space. With the Apple Pay app becoming the norm – and upstarts like Square and Stripe, and old-timers like PayPal getting in on the action – Facebook is gearing up for its next big feature – online shopping.
That’s right Facebook is ready to help Americans participate in their favorite pastime – shopping. And making it easier than ever!
Both Twitter and Facebook recently began beta-testing ‘buy’ buttons. Of course these are strategically next to product tweets and posts to make purchasing what’s crawling on your screen as easy as just a click away. And you won’t even need to leave Facebook!
It’s the perfect mash up. Checking your newsfeed, you see a product and rave reviews. Click on 'buy', your credit card details are already stored in the app, your purchase is made and you’re back to looking a cat pics and taking quizzes in no time.
With time-sensitive deals streaming, customers will be inclined to act now or lose the deal in their newsfeed. There won’t be time to comparison shop or the need to be retargeted. In a matter of seconds, products will be seen and purchased.
This methodology will be a major benefit to advertisers. Connecting tweets and posts to purchases has been a huge analytical challenge. But with the ‘buy’ button, concrete revenue figures can be attached to specific social media messages in a way that has never been possible.
Just when some thought Facebook was dead, it’s aggressively charging into new frontiers – America’s pocketbooks and its love of shopping.