There’s been a lot of talk this week about Facebook’s new cryptocurrency – Libra – and the digital wallet that manages the currency – Calibra. Amidst all the media sh*itstorm surrounding it, marketers have been trying to get their heads around what the currency will mean for brands and businesses who advertise on Facebook. Let’s take a look.
What is Libra? ♎️
Aside from being the best sign in the zodiac (if you listen to Aimee Corten), Libra is a cryptocurrency that’s been rumoured for a while under names such as FaceCoin. As a crypto, Libra won’t be tied to any one currency, preventing volatility and allowing people to use it across the globe.
By launching a cryptocurrency, Facebook will make it easier for people to use shoppable features within the likes of Facebook, Instagram, WhatsApp and Messenger.
What does this mean for eCommerce businesses?
Facebook expects the move into the crypto market to have a positive impact on advertising revenue, as more businesses decide to sell both on and off the platform. More businesses will be swayed into using Facebook for advertising, which is great news for marketers. It should make payment easier and more effective, whilst also opening up eCommerce for people in developing countries.
The critics say
Zuckerberg isn’t exactly the most trustable character, and many people – including the US government – have already expressed their concerns. Data privacy issues are still a real worry, and brands and users alike may be a bit wary of opening up their bank accounts to Facebook. But on the flipside, will the pros outweigh the cons?
What does the future hold?
Time will tell whether Libra will really take off when it launches in 2020. If it does, it’s sure to cement Facebook as the dominant social media platform for years to come. If things go well, it could be lucrative for brands and marketers alike, as it will open up a wealth of eCommerce and customer experience possibilities.
By keeping users inside of its platforms for longer, Facebook could see an increase in conversion rates for eCommerce advertisers, as customers check out using Libra coins, making it a seamless, efficient experience. It could also open doors for smaller businesses who may not have well-optimised websites, as they are able to sell from within the platform itself.
We’re excited to see what the future holds for Facebook and Libra. Keep watching our social channels for more discussion on this and wider social media topics. Follow us: Facebook, LinkedIn, Twitter, Instagram.