Facebook Launches ‘Gifts’ to Steal Google Search Traffic

Sites include Facebook.com . Published on October 9th, 2012. Written by Anthony West.

It’s no secret that Facebook has been struggling to monetize its 900 million+ active user base, but as of late the company has been coming up with some innovative ways to get people spending.

The latest attempt to keeping investors happy has set off a buzz among analysts, and many are suggesting that the new service called ‘Gifts’ could eventually steal away millions of search dollars from Google. The service will allow users to buy gifts for their friends directly on Facebook by clicking on ‘gift icons’. Already several big-name merchants have signed up, including Starbucks, Magnolia Bakery, Vosges chocolate and Happy Socks.

Gifts will have a bit of dynamism to it and although the recipients of the gifts won’t be able to see the price, they’ll be able to customize its look (color, size etc.). Analysts are calling it no less than a small coupe for at the very least it allows 900 million people to do their shopping directly on Facebook without the need to visit a search engine.

Facebook of course will need to lure more retailers, but fundamentally, the new service looks sound. Paul Marsden, digital and social media consultant and editor of Social Commerce Today thinks Facebook may be turning the corner with its monetization ideas: “This is a watershed moment for Facebook…Facebook ads actually make sense for the first time.  Facebook is creating these buttons that essentially flip someone from social to search mode.”

The service is still being rolled out and not every user has access; early feedback suggests though that Facebook may be onto a winner.

Do you think Facebook’s new ‘Gifts’ service is a good idea? Share your thoughts below.