Gifts incorporates user data into suggestions for gifts to buy for friends on the network. Facebook earns a percentage of sales when you use it to buy friends physical products or digital gift cards for their birthdays, weddings, or other special occasions. Facebook launched Gifts after acquiring Karma in May.
Zuck said on the call, “We’re also excited about the Gifts launch. We’re in the early days of the launch but there is an opportunity to add more commerce to Facebook over time.”
As we’ve written in the past, Gifts has a lot of potential for revenue for Facebook, and the markets have responded. Clearly, Facebook sees more potential in new commerce tie-ins with the network, so Gifts may be only the beginning. Also, Facebook is holding a press event for Gifts in New York next week, so perhaps we’ll here more soon.