How are the spoils divided in social media based giveaways?
Lately, a bunch of discounts/giveaways have appeared on SD most of which combine a merchant, a payment processor, and a social media company. e.g. Staples, Amex, Facebook/twitter.
The old model had a merchant providing a discount (e.g. Target coupon) or a payment paymentprocessor giving $ (e.g. Google checkout). It's pretty straightforward to understand the motivation and approach here. But the multiple player (from different industries) scenario and data-mining is quite different.
So how does this "new" approach benefit the merchant, cc company, and facebook/twitter?
My random stab would be that the merchant (say Staples) and social-media company (say fb) get to correlate/understand the demographics/likes/dislikes of those who purchase this item. CC companies (say Amex) perhaps are setting up to track credit worthiness through the facebook/twitter id
I don't understand the business side of social media and data mining. But I am hoping somebody who does will connect the dots.
[Update 04/01: Title edited]
Last edited by new_berlin; 04-01-2012 at 03:18 PM..
Downside is you give up your privacy. Google/FB probably knows the real you better than anyone you know in real life.
Agreed but it would be useful to break it down a bit more in terms of how the different bits of our privacy get divvied up between the merchant (staples), the social media company (fb/twitter), and the bank (amex). Knowing this would help ordinary consumers make a good decision or at least make sure they take a deal only if it worth it.
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