Gartner Research

Facebook Forages for a Digital Commerce Vision

Published: 11 January 2013

ID: G00246392

Analyst(s): Allen Weiner

Summary

Facebook's march to monetizing social commerce has been bumpy, as the company looks to add revenue from consumer transactions.

Table Of Contents
  • Impacts

Analysis

  • Positive Forces
  • Negative Forces

Impacts and Recommendations

  • As the largest social networking site, Facebook's ability to build a growing revenue stream and drive transactions for third-party providers in digital commerce is a bellwether for the future of social commerce
  • Facebook Payments (formerly Credits) remains the leading currency for digital goods (especially social gaming) and offers potential as a payment mechanism for higher-priced goods and services
  • Successful implementation of a digital commerce strategy at Facebook would enable digital marketers to shorten the distance between consumer awareness and purchase at a grand scale.
  • Facebook's entry into a full-scale digital commerce program has been thwarted by issues of data protection and security.

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