Today pop singer Britney Spears debuted a line of exclusive virtual gifts branded with her likeness, logos, and signatures on the Facebook social network. The gift icons cost roughly 20 Credits (or $2) apiece, although there is one free gift in the line that will change monthly. The gifts are being offered through Facebook's official Gift Shop app, not through a third party app. They are designed by Facebook Gifts designer and veteran icon creator Susan Kare -- and they signal what could be a watershed moment in the short timeline of the virtual good.
Britney Spears has been active in promoting her brand in social media, with two million Fans on Facebook and over one million followers on Twitter. By positioning herself directly in Facebook's official gifting app she's also maneuvered her brand as a celebrity into a very exclusive position. Right now her celebrity gifts costs twice what the unbranded Facebook gifts do, but if they're successful there can be little doubt that Facebook will follow up with other major celebrity brands.
Britney's move to Facebook may be a major sign of a coming shift in the way virtual goods monetize for businesses. Investment banking firm Piper Jaffray recently called for US virtual goods spending to reach $621 million in 2009, due to increased spending on virtual goods in social networks.
"Last year, it was likely that the majority of virtual goods based revenue in the US came from virtual worlds," said the authors of the Piper Jaffray report. "However, this year we believe the trend is shifting to more virtual goods revenue coming from social networks."
What Piper Jaffray is calling for here isn't a decline in spending or use of virtual goods. Instead, more users are spending more time on Facebook, which is driving increased spending on virtual items both in Facebook's official stores and in third-party apps. Right now Piper Jaffray is estimating a $2.2 billion global market for virtual goods in 2009, rising to $6 billion in 2013. It's worth noting that Plus Eight Star currently values the virtual goods market in Southeast Asia alone at $5 billion.
Comments