Facebook Inc has unveiled a new fundraiser feature on its social media platform. The feature allows non-profit organizations to obtain money on their campaign pages. The viewers of these posts could then support the cause with their funds with a click. The audience of these pages can also share this content on their own timelines to increase the reach of the campaign.
Analysts expect that this move would make Facebook a rival to other crowd-funding services. Even though it is suggested that only 25% of a campaign’s traffic is directed through the existing crowdfunding services, the figure is expected to be significantly larger for Facebook.
How this Effects Facebook’s Revenues?
Facebook is already used to share information about causes and campaigns, but user can only donate to the causes through third-party services. This tends to makes its harder for contributors to donate and it makes it hard to campaigns to make much money. With this new feature, Facebook would remove the need for a third-party. In short, the firm wants to reduce the number of clicks needed from a user to contribute.
Facebook Inc has been trying to “absorb the internet”. It has taken a number of initiatives, like “instant articles”, to minimize the need for users to leave the platform for their social or business news needs. The addition of a crowd-funding feature is just another step in that direction. The social media platform also has a number of features that require you to share your payment details. The new crowdfunding feature would increase the number of people that share their payment info with Facebook.
Facebook had also announced a recent deal with Alphabet Inc. to combine efforts in digital ads space. In 2014, Alphabet controlled a third of the digital marketing space. Facebook controlled 7.75% during the same period. If the two platforms were to move apart, both would suffer huge losses. An ads deal between the two firms can give birth to a marketing giant and Facebook can use these combined services to help the campaigns gain more attention and money.
Facebook wants to improve lives
Facebook Inc has been making efforts to push its Internet.org project into developing countries. The company engaged itself with Bharti Airtel, to deliver Internet.org services in 17-African nations. The move will increase its user base as more than 1B people are expected to get online through the service. With these services, Facebook revealed that it wants to bridge the “internet gap” between countries. Having a platform to get donations for causes in such countries will eventually help improve the lives of its people.
As was the case with Facebook’s donate button in 2013, the company has once again come under fire for collecting payment information from its users. It is unsure if these may or may not be used in future e-commerce ventures. Some analysts have also voiced concerns over the authenticity of a campaign asking for donations. Whether or not Facebook develops a policing system for the new feature, is yet to be seen.