Reporter's Roundtable Ep. 122: Free gifts for your Facebook friends, with Wrapp
Guys pre Natal and San Francisco to reporters' roundtable you know FaceBook obviously becoming RP area of social interactions -- social infrastructure.
It's where we connect that's where we break up it's where we.
Iraq is where we do all our -- all are living with each other and increasingly. -- giving gifts is a big part of an interaction so.
We're talking today about one of the most important companies in that space is called -- WR a PP.
It's a new platform for gift giving at least here in the US -- the life for about a year in Europe and Sweden in particular.
It's far from the only.
FaceBook based gift giving platform but I think it's really -- -- so I brought in CEO of the company on their US launch day -- -- glad.
Into round table to talk about what's going on with -- personal congratulations on your US launch -- thank you and thanks for coming in.
Give us -- -- -- quick pitch -- what is rap and why as a socially connected FaceBook person should I care.
If your face producer and you have a Smartphone which is actually animals most people today.
But wrapped us it's make it super simply needs to give and give course digital and social -- -- read value.
And most of the -- it's actually free.
And if you want you can then add money to note defeat if -- and you can actually jointly -- to those gift cards and send to your FaceBook friends.
So finally get somebody gift card.
The your partners will give me money to give to them.
Free money yeah -- the plastic and has been we have a graph is that today and not to be -- it is especially brick and mortar retailers are spending two minutes on among an advertisement -- keep in distort some all right and in most most of the kind of classic advertising methods for -- and workers are not make it to horribly mean.
-- -- -- -- --
And Paper advertisement in direct marketing and so forth.
So what they can -- wood --
Is that he can actually offer need to keep you defeat if caught a few feet to demographic that they actually liked him -- in getting to distort -- itself I wanna give -- --
You have to have liked what it clout score a certain area a certain number in order to qualify for the free Starbucks or gap or whatever it is -- that I wanna give you on to the way we -- -- -- we used to seeing.
Date -- FaceBook is for the appetites than they look at your social profile and she's of course is --
Gender and age and and location where -- needed her and of course it -- Smartphone and it ads and apps that we have we can actually be more precise indication and based on -- -- it.
The -- you can get the film.
So we'll Begin based on that date dot and retailers can then make sure -- -- people that actually.
In that area that actually feats of demographic they actually asked the team customers.
-- that's the case.
And -- a person you know that you would like to gift.
F free gift card but most people are you gonna -- cars so two things first of all. If I want -- give you -- --
It -- you have to be a member of their rap community know of and it's so -- -- stars is a huge dominant app.
And you can store gift what you FaceBook friends -- our app on the Smartphone Android platform and iPhone.
-- -- --
And of course and it would have wrapped -- -- --
Okay but when I now go to give you -- gift toward earth is -- Steve Begin at.
The gifts that are available for me to give you verses -- -- him will be different.
Yes and it's fast so -- different based on of course in a Monday since the -- Sweden and therefore even -- -- Swedish gates.
And -- that -- -- that would like to.
Target you know my my demographic which is -- and my H and and gender and -- and they gonna pop up when you're gonna give me.
And in the news and gift someone -- some of Cisco of course -- selected target those people that -- passed that.
Each group and gender and location --
Is this really gift or just like and give you a sponsorship I mean it sounds like it it's it's kind of a new concept of different and -- wanna give.
You know my mother a gift that it's not like hey here's a five dollar gift certificate from.
From the drug stores like this is a gift -- from heart you know it's -- the way it works I mean than the gift is free and it's no strings attached photo.
It's a gift card value maybe five to ten dollars and up to fifty dollars we have here in the US in the -- -- have -- course of treatment and flight and flight.
All of -- from different retailers.
And of course if it's -- -- -- and made maybe should lead to New York -- kind of needs to -- you would just like to say thank you -- on what last week W evade sitting empty into whatever.
You can then actually.
Start with the free gift card and an ad money today if part and -- it's not enough we -- you'll feel meet that fight attendant and if I don't is not enough you just add.
To that if caught in you know grow to 22 and flight fifty dollars so interest and so you've launched you said about a year ago in Sweden.
We launched November 15 so it's less than half year others -- and and -- what you learn from.
So we doors in Sweden and sweeting is not passed mature when it comes to keep quoting -- as the US and we don't -- -- -- culture -- here.
And the first four months in Sweden and we had 200000 people actively. Downloading -- to -- -- difference.
And of one point four meeting gift cards were sent in Sweden and with that in context.
It's four point five -- FaceBook users in Sweden's it's a small country and roughly eighty companies know FaceBook and Smartphones Android in the US.
RFE three you know half -- people.
So 200000 out -- via three million people in the first four months and had given one point four -- -- -- gifts.
Is it is is it -- good success.
Interest -- so hang on we have a gift car culture here.
Yeah I gift -- where you know it's interesting it was kind of surprised to them in US an average adult gives five gift cards for it and per year.
And it which is a very high amount I am following on an -- and it seems as a you know it's it's that it.
And and and and and decisive -- market is actually hundred billion dollars so.
That's -- times Begin and will -- -- -- being on the Internet last year in the US.
-- -- -- -- yeah I made based -- that numbers it was stunned to -- it be -- that this is a -- for -- hundred billion dollars.
Of pieces of plastic with stored value that get lost and discarded the the amount of -- -- value.
That's called the break it to believe the -- must be immense yet it it's and I think you know.
That's recent -- -- has -- based on you -- -- -- people into stores and -- basis -- alignment of the tips that says that we only on Monday that if parties use.
And I think the gift card.
It if it's a much better place to have to give coding your mobile -- -- -- toward next -- -- that you -- you know talking to company about the mobile phone asked if it doesn't so.
-- is mainly in and act when -- mobile phones did not name comes from bad rap and --
That's that's recently -- keys.
In Internet name and and a whole -- to make sure what that -- interacting in giving gift to each other you know.
On a daily basis through their mobile phones relative to that war or you know buying piece of plastics and stores.
So when I get it get to wrapped -- -- then I need the app or has come as an SMS that I have to have a Smartphone or to redeem my gift from from you or somebody yes so what we've done is that we are focusing on the people it has Smartphones and actually have that as one way to actually said it -- for -- with the -- haters.
And make sure that -- you you need to have a Smart phone and Android and IOS device.
And and FaceBook so that's account of the limitations in terms -- haven't been -- -- -- beat.
Well there are lot of people Smartphones and and a and face a --
So you know what people are giving to other people is is there are about a privacy angle or -- potential problem here with the -- giving.
I don't know -- girlfriend. A gift to individuals for -- you know -- -- that but they're gonna get somebody -- to drool over Sony -- a real.
Yeah I think you know.
I think that's the interesting thing if you look at act that acts gift card in here and use that actually give courses most thought often due to received by consumers in the US argues in --
And I think one of the reasons is that and I just look at myself and again try to do something to -- do what is so many noted loud HM -- excel and the like fashion.
And with you know from need to by.
Something at each of them to life fourteen -- Ogletree is -- to fake tan so.
I think she's much more happy to get a gift card from her dad. And and then of course do it shall -- yourself and decide the size corner and watch.
Now it's on other there are other businesses in this case -- I covered a wild -- called. Karma.
Have -- seen that yet I think they have a very interesting.
And it a cognitive and social gifting in at theirs is a very different model that is I actually pick out a gift for the recipient and but they don't have as far as I can tell they don't have this.
This kind of marketing angle that they -- I mean our focus is to really make a win win solution for the consumer.
To consume hostile -- to give away free gift cards.
Two -- two to their friends.
And do it won a cash basis you know not just for birthdays -- spike thanks for -- great meeting yesterday -- -- mall on the I hope you get well soon -- sending it thank US and text message shore or -- -- FaceBook won't post.
We think you know cash and gifting.
It's a very interesting aspect and that's what have groomed and -- -- -- tremendously in in in Sweden and you watched Aaron.
-- that thought will be right back after on this give the message from.
And and yeah.
Right so partner in the US.
If -- who are some of the health about the launch who were some of the partners anything you've learned in the -- for hours or so since you you had a Levine and 24 hours -- and -- -- is I'm warning you slept.
Not that much say you know I stepped up dollars -- -- it occurred -- good luck with that but down.
Tell us about though who your partners are and what they are looking to get from this relationship over --
So we are working we denim brands like HNN gap Saffo right here in the US and even -- -- juveniles and Angry Birds since it.
Did very interesting turn of -- all of a different -- taking.
-- both that he didn't do its if you can cool angry bird that and its night game.
Which was too juvenile its accident -- it litigation trust to -- edition and enough was more traditional -- and want to meet its.
Is it difficult sell -- mean do you walk into the Macy's or the Saxon avenue and say I've got this new way.
For use to reach potential customers and sell -- gift cards.
How is the sales process going mean for for -- -- has been out for awhile the US launch you have some impressive launch partners -- a relatively small number.
I think you know the number -- -- -- -- don't.
True north Wii five to eight B ten -- to -- a good techniques actually we north and fifteen.
Here in the US and we have an out if it OT actually brands and retailers on easily and to used to -- do launch -- some of them at every week some additional grants that it and coming to make it something it's happening now the most and you meet and you can if -- -- when you look at.
At at it from pro from from the region perspective and I think this is great -- to try sales.
At the same time you're actually getting great brand positioning at you know both on the FaceBook will.
In a friend to friend framework and and and then of course.
Didn't need different and it's free and that's recently can act -- to give code that you view only of course to difference.
I I get the -- and it is a compelling pitch but how's the sale I'm curious you know the sales process is going as I see all these interesting new -- whether it's.
Group on and on top of requirement -- whether it's group on with their different pitch or.
-- karma to an extent that we talked about or around -- Sutherland --
-- -- but but but only a geek which is doing happening easement trying to engage people when they're playing games.
How do you find the person to sell this to me how much of the budget can you get.
Vs. You know broad band advertising a broad base that -- has very focused marketing consumer means you're doing here.
I think you have from the retailer perspective especially if you -- want to retain their.
You're looking for much more efficient ways to -- sales -- --
Beacon mortars to -- and of course so far they have not -- found a good Edward method for them that works for.
I think that it be compelling story about rap is at.
It's very very good targeting opportunities -- in --
And it leverages social graph and the Smartphone in -- their possibly for the mobile a full for the retailers at the same time it's building their --
And it and the only paid when actually.
US -- -- magazine and -- your part so.
The whole thing is reformist base -- them so they don't have any -- whatsoever until next -- lets assume there are using you -- New York if is there any danger.
Of the group -- type of brand erosion I mean when when when I buy a -- on our own amendment that the general thinking is and I'm now customer group on not a customer of the storm -- in the group on for him.
Since you're giving things away to people is there a chance the people just take the -- or give the previous and not build brand which is what companies want.
I think --
Group -- -- malt and is attached to brand to massive -- counts and actually -- things you are looking for do you use.
To -- that up front and and actually.
Of course using that --
Rap is expected all the -- which is you aren't giving a gift to a friend receives a gift -- of being valued.
If it's it sponsored and free for -- it needs it it's still that seemed still holds the same value for development -- to gift card.
And of course -- context for the retailer -- they get posted.
All new or FaceBook ruled by a friend in the cold is -- saying thank you conduct the nation's -- CU.
And so forth so that's something that -- -- brand building.
Rather than brand dilution where they actually being paid by someone looking for a great -- and their -- -- -- -- -- big discount next to the rest.
Do I have to broadcast this and I just give somebody -- without putting on the wall or just the right if of course you can look right if so I mean you can you can send -- their prior to the -- text message.
And but he seems as if he many -- cherished on the FaceBook -- action open up for other people to contribute to be gift.
And -- happening in north when you have a birthday or holiday season wreaking whatever.
But people and actually can add the entity -- so you gift card let's say --
You know at sporting bye -- company -- or whatever.
And everyone knows that you grates you need to -- seeking whenever it and the new connections to people group.
Keeping -- -- gifts to give could actually drew little span in -- -- -- annual rate well in.
Thanks to come and answer very very interesting model very creative very interest in way to make money -- that help people.
Connect with each other and give it as well that look with technical theory continue to -- the US launch thank you.
Up again that's -- marlin black from a rap WR -- PP.
Dot com you can get it an Android and iPhone.
Check it out we'll see -- -- reporters roundtable.