Consumers Will Buy 40 Billion Facebook Credits This Year
A vice president for a small business focused on Facebook commerce estimates consumers will buy 40 billion Facebook credits this year.
That estimate was offered by Dean Alms, vice president of marketing and business development for Milyoni. Milyoni has received $14 million in financial backing to date, including an $11 million round completed in February.
“The growth will be fueled by new digital content available on Facebook, use of Facebook Credits to reward brand loyalty and better marketing of a social currency that is still in its infancy,” Alms writes in a guest post for TechCrunch.
Credits already account for a significant amount of Facebook's business. In 2011, Credits generated around 15 percent of Facebook’s $3.7 billion in revenues, its S-1 filing shows.
It's also already a rapidly growing business segment. In the first quarter of 2010, Facebook Credits created about $5 million in business for the social network. Then between the first and fourth quarters of 2011, the segment grew 247 percent — ending up contributing $188 million to the company's revenues in that final quarter.
The skyrocketing payments operation is sure to have a substantial impact on the entire payments industry as a whole. "If you’re in the payments business you need to worry," our own David Evans wrote earlier this year.
More from Evans: "The not-so-far-fetched worry for payments companies is that Facebook sucks in a significant portion of online and offline commerce. In fact that’s where I’m putting my money... Most significant businesses have Facebook fan pages. Facebook and these merchants have a strong interest in moving commerce on to Facebook: Facebook because that’s where the money is, and merchants because that’s where their customers are."
The complete column from Alms' is available online as well. Read that story here.
Note: David Evans is the owner of getta!Table, a Facebook deal program for restaurant offers. The program utilizes Facebook Credits.
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