Facebook: Profit vs Non-Profit

Last week saw a few small changes to Facebook’s corporate direction. First it announced that the online currency Facebook Credits can now be purchased at Wal-Mart and Best Buy; and then the site added a non-profit gift catalogue. What do these changes mean for Facebook?

First, let’s handle the massive move into selling physical credits in supermarkets. These credits are in the form of a gift card that has a unique code. This is typed into Facebook so you can use the growing selection of paid-for games.

This move was perfectly timed as the holiday season is just round the corner and parents will be after something cool to buy their children. Recent reports have stated that the number of Facebook users over the age of 35 has increased dramatically. This means that parents will have a good understanding of why the Credits are a good option for their children.

Social gaming is a rapidly expanding sector and virtual goods business is expected to grow to £3 billion by 2013 – so it’s a great move for Facebook to get in on the ground floor.

Facebook is already known for its gaming apps, most notably for FarmVille.

The social network is diversifying its product as quickly as it can, but as Facebook specialises in communication, is it stretching itself too thinly with social gaming? It has the advantage of being the world’s large social network and so people are already connected with their friends. This is an instant advantage on other social gaming platforms where all of your friends have to create an account.

Social Good has been on the rise in recent months with some of the largest internet brands trying to get free marketing on social media sites such as Twitter by donating money to charity. LimeTree blogged about a more recent example for this from PayPal. Now Facebook is getting some social good.

The World Wildlife Fund (WWF) has created the first ever non-profit gift centre on Facebook. Also well timed for the season of goodwill, the Facebook Page allows users to adopt an animal for themselves or a friend. Once the animal is adopted, you’ll receive a certificate, a colour photo of the animal and a species description card.

The packages range from $25 to $250, and all packages over $50 come with a soft animal toy chosen from a list of 100 .

The WWF has also said that in the coming weeks it will be launching an interactive feature called “Find Your Inner Animal”. This app is similar to many other Facebook quiz apps but with a much more charitable slant: once you’ve finished the quiz you’ll be told what animal you are and then get the chance to adopt it.

It’s a cute idea, but I don’t know if it will transfer into sales. It’s expensive; and although WWW is a great charity, you seem to be paying a premium for giving on Facebook.

These new developments show both sides of Facebook: firstly the monetising giant hell-bent on getting its claws into every aspect of our socialising, both on and offline. And secondly the marketing platform that can help do some good for the world.

You’ve only to log onto Twitter or Facebook to see social good. People will also Tweet or post the things most important to them; and if a company is doing something illegal or a charity is running a campaign, you’re bound to find out about it. It’ll be interesting to see how many people put either item on their Christmas list.