Facebook Promotes Social E-Commerce

No one wants to go concerts or sports events alone.

So its not surprising that when Facebook users see that their friends are going to an event, they’re more likely to go too. What’s more surprising, perhaps, is how much more likely.

Facebook said Wednesday that every time a user posted on their news feed that they bought a ticket from Ticketmaster, friends spent an additional $5.30 on Ticketmaster (presumably for the same event). At Eventbrite, a social site for selling tickets to lesser known events, every link shared on Facebook generated $2.52 in ticket sales, Facebook said.

Facebook has long promoted the value of such social ads, saying that word of mouth from friends is more valuable for users and marketers alike than generic marketing messages. The company now says that, similarly, e-commerce sites are increasingly benefiting from tying their services into the Facebook platform. In other words, Facebook says a purchase shared on Facebook generates more purchases from friends.

“We now have a direct link between sharing on Facebook and revenue generation at e-commerce sites,” said Dan Rose, vice president of partnerships and platform marketing at Facebook. Mr. Rose said that 18 of the top 25 e-commerce sites are using Facebook features like Facebook Connect or the “Like” button. Giantnerd.com, a shopping site for outdoor gear, saw a doubling in revenue generate from Facebook within two weeks of adding the Like button, Facebook said. American Eagle saw users referred by Facebook spend 57 percent more than average on the site, Facebook said.

Of course, what’s good for commerce sites that embrace social features is also good for Facebook, even if the company doesn’t charge sites for using those features. That’s because sites that use Facebook heavily also tend to advertise on Facebook.

“Our most successful advertisers are marketing Web sites or applications that have already integrated the Facebook platform,” Mr. Rose said. “If Ticketmaster does well on Facebook, they will spend money on Facebook.”