Facebook’s New Gift Service: Nice, But Not Yet An E-Commerce Game Changer

From my Forbes.com blog The New Persuaders:

Just in time for prime gift-giving holidays like Friday’s World Rabies Day (or if you prefer, Ask A Stupid Question Day), Facebook today launched a social gift service. It’s rolling out to only a select few for now.

I must be one of them, because I was able to send something to my wife to try it out. But in its current form, I doubt I’m going to use it much.

This isn’t the 2.0 version of the Facebook Gifts virtual-gift service that the company shut down two years ago, by the way. In fact, the new Gifts is built upon, and run by, the folks at Karma, the gift-giving service Facebook acquired in May.

It actually looks pretty good. And while I have ordered precisely one gift that obviously has not yet been delivered, so I can’t judge the entire gift-giving process, it worked quite smoothly. I clicked on my wife’s Timeline, clicked the gift button, and off I went to order her some caramels. She can even pick her own flavor–that’s pretty cool.

In this case, I obviously know her address, so one advantage of Facebook Gifts–not having to know or ask for someone’s address–is moot in my case. What’s more, I didn’t get an automatic reminder I might get if it were her birthday, so that bit of friction elimination wasn’t a factor for me either. But it’s fast and easy to send gifts to friends, and that’s great–not just for consumers, but for Facebook, which can use a service that brings in revenues not dependent upon its brand of advertising that many large marketers are still doubtful about.

So what isn’t great, at least for me?

* A lot of the most prominent gifts are pretty vanilla–teddy bears, spa appointments, flowers, cupcakes. Maybe they’re fine products. Maybe they’re the sort of thing most people give their friends. But for a service with a tagline “real friends, real gifts,” too many of these products seem just too impersonal. Products, especially gifts, are not necessarily fungible, and all the less so for close friends for whom you’re supposed to be getting something special. And if they’re not close friends–and let’s be honest, most people don’t have several hundred close friends–I probably won’t be sending them many gifts, from Facebook or anywhere else. …

Read the complete post at The New Persuaders.

Apple’s New iOS 6 Ad Tracking Feature Is ‘Broken,’ Says One Source

From my Forbes.com blog The New Persuaders:

With the new iOS 6 operating software released with the launch of the iPhone 5 last Friday, Apple introduced a new version of a feature that allows advertisers to track phones to serve targeted ads. But it seems that for people who updated their iPhones via wireless networks, Apple’s new Advertising Identifier is not working.

That’s a big deal for advertisers, for which iPhones and iPads are a rich channel for mobile marketing. Without being able to identify users–or more accurately, their phones–they can’t track whether those ads produced a sale or other “conversion” such as an app installation. And they may not to spend a lot on iOS ads until they can do that again. “It’s crucial for the advertising market,” says Ravi Kamran, CEO of the apps marketing platform Trademob, which discovered the problem. “It drives the whole ecosystem.”

Apple’s new Advertising Identifier, which replaced a Unique Device Identifier widely seen as flawed from a privacy perspective, shows numerical IDs that are entirely zeroes instead of the usual unique sequence of numbers. In an interview, Kamran said the problem affects only those phones updated via WiFi, not via iTunes on a computer or via Xcode that Apple software developers use, but that’s a lot of people.

For the time being, advertisers will have to depend on third-party identifiers such as Open Device Identification Number, Kamran says. IPhone and iPad users who don’t like being tracked may be perfectly happy the Advertising Identifier doesn’t work. But the new identifier also offered a way to opt out of tracking, so ultimately a working Apple identifier is probably desirable for all concerned.

I’ve contacted Apple on whether it’s aware of the issue and what it may do about it and will update this post if and when I hear back.

Lots Of Blame To Go Around For Facebook’s IPO ‘Debacle’–But It Doesn’t Mean A Thing

Facebook CFO David Ebersman. (Photo: Wikipedia)

From my Forbes.com blog The New Persuaders:

When anything goes wrong, we just love a scapegoat, don’t we? Today’s scapegoat in the business world is David Ebersman, Facebook’s chief financial officer, who New York Times writer Andrew Ross Sorkin says is completely, solely, and utterly at fault for the social network’s underwhelming initial public offering and subsequent swoon in its stock price to less than half its IPO level.

Sorkin, as well as others, say Ebersman’s insistence on a higher stock price and especially on issuing more shares shortly before the offering were the key reason Facebook’s post-IPO shares not only failed to rise but steadily fell–vaporizing some $50 billion in shareholder value in the past 90 days.

But Ebersman is hardly the only culprit in the IPO. There’s also:

* Facebook’s underwriters, including Morgan Stanley and J.P. Morgan Chase. Not only did they go along with and even encourage the pre-IPO hype, but recently they cut their target prices for Facebook, contributing to today’s slide that knocked shares to under half the IPO level.

* Facebook investors. Business Insider’s Henry Blodget, who knows a little something about Internet stock dynamics, says investors willfully ignored both Facebook’s own warnings about advertising revenue uncertainties and CEO Mark Zuckerberg’s letter to, yes, investors, that he would focus on building Facebook’s services over maximizing its profits.

* Not least, CEO Mark Zuckerberg. After all, the buck (or in this case, 50 cents) stops here. While finances are probably at least third on the list of his concerns, behind Facebook’s services and its employees, a CEO ultimately is responsible for such a signature event in a company’s life.

Still, regardless of whom you might think is most culpable, in the end it probably will have little impact on Facebook’s prospects. That’s because there’s an even more fundamental reason to question the singling out of Ebersman: Perhaps Facebook’s IPO wasn’t really a debacle after all. …

Read the rest of the post at The New Persuaders.