Places and Deals Overview

1. Places and Deals Overview

2. Agenda • The Landscape • Facebook Places and Deals Product • Use Cases 1 3 2 • Appendix: Parent-Child 4

3. The Landscape

4. Location Based Technologies • 50% of online American use location-aware mobile services • 33% of people use location-based services for shopping and coupons • 25% of people use location base services for social networking • 53% of Retailers are currently using location services with social media integration • Other location-based mobile apps include: Yelp Mobile, Neer, Loopt, SCVNGR, Shopkick, Foursquare and Gowalla Source: eMarketer http://www.emarketer.com/Article.aspx?R=1008280&dsNav=Ntk:basic%7clocation%7c1%7c,Rpp:25,Ro:-1

5. Location Base Services Landscape

6. Group Buying • Groupon, Inc and LivingSocial lead the market • Online shopping (excluding travel, digital downloads and event tickets) is expected to exceed $188 billion in 2011* • Group buying services are expected to generate $3.93 billion by 2015 • Services generated $873 million in 2010 • Other group buying services include: ReachLocal, Gilt City, Tippr, Homerun.com, PopSugar City, KGB Deals, Plum District and Zozi Source: BIA/Kelsey, a Chantilly, Virginia-based consulting firm; http://www.bloomberg.com/news/2011-03-12/facebook-will-introduce-new-service-that-sells-discount-deals.html / *eMarketer March 2011 http://www.emarketer.com/Article.aspx?R=1008284

7. Group Buying Landscape

8. Facebook Places and Deal Product

9. Facebook’s Value for Location and Check-in Deals • Scale: Over 200MM active Facebook mobile users • Word of Mouth: People have an average of 130 friends • Loyalty and Trust: People use Facebook to build and maintain relationships – places are the newest relationship added to the graph

10. Check-in DealsA new way to connect with customers Reward customers when they check in on Facebook Generate in-store traffic Generate buzz among friends online Build loyalty

11. Loyalty Deals • Check-in Deals Varieties Friend Deals Individual Deals Charity Deals • Reward your most loyal customers and offer a deal after a certain number of check-ins • Give back to the community and incentivize customers to check in by offering charity donations • Launch a new product, offer a promotion, or reward your customers. This is a great way to drive in-store traffic • Encourage customers to bring their friends and family to your stores

12. Parent-ChildCreating scale for multiple locations • Mass Places creating and adoption • Deal Creation across multiple store locations • Consistency in presence with profile picture inheritance

13. Places Open Graph API Key Benefits: • Do not need to own your own retail space • Experiences beyond the native check-in user-flow (gaming, loyalty rewards, etc) • Ability check in with Facebook using another mobile application Reward Activate Engage

14. Insights and Measurement Claimed Deals: The number of times people claimed a Deal at your Place on that day, if you have enabled this feature. Check-ins: The number of times people checked in at your Place on that day.

15. Use Cases

16. Bravo + Foursquare Goal: With shows are based on real people at real locations in real cities, Bravo wanted to enhance the Bravo audience experience and increase engagement. Reach the affluencer audience. How it works: • Users win Bravo badges when they visit Bravo tagged locations. • Locations correspond with select Bravo shows, including Top Chef, The Real Housewives, The Millionaire Matchmaker, etc. • Bravo talent leaves tips at the designated locations Reference: http://bits.blogs.nytimes.com/2010/01/31/foursquare-partners-with-bravo-tv/

17. Pepsi + Vons + Foursquare Goal: Redefine what loyalty means not only for retailers but for consumer packaged goods How it works: • Connect: Register your VonsClub Card with your Foursquare account • Check in : Check in to locations around your local area • Shop: At Vons, your VonsClub Card checks you in at checkout • Reward: Based on check-ins and shopping behavior, you’ll unlock rewards which print at checkout to be used on your next shopping trip Benefits • Offers are based on behavioral data • Pepsi collects consumer data beyond shopping behavior at stores Reference: http://www.fastcompany.com/1703807/exclusive-foursquare-partners-with-pepsi-unveils-linked-loyalty-rewards-accounts-facebook-pl

18. Disney + Gowalla Goal: Capture and share memories at Disney resorts How it works: • Pins and stamps for rides • Guided tours without needing a person to guide you – itineraries called “featured trips” Differentiator: Gowalla is focusing on experiences instead of loyalty programs “It’s not just about letting people know where I am. It’s about showing people the experiences I’m having.” – Andy Ellwood, Gowalla business development director Reference: http://www.fastcompany.com/1703641/disney-teams-with-gowalla-for-massive-location-based-branding

19. JetBlue + Facebook Goal: Leverage the check-in behavior related to travel and promote brand and loyalty program. How it works: • Activate the Go Places application on the JetBlue Facebook page • Automatically get rewarded with TrueBlue points for check-ins using Facebook Places at select airports with JetBlue terminals Benefit for Users: Allows customers to earn real rewards as opposed to virtual rewards Reference: http://www.airportbusiness.com/online/article.jsp?siteSection=1&id=42311&pageNum=2

20. Gap Custom Deal Promotion Goal: In environment where consumers are constantly deal searching, provide an engaging offer that drives sales without hurting margins. How it works: • Go to gapmyprice.com and barter a deal on select styles • Consumer can make up to 2 offers and Gap can give 2 counter offers. Results: • Mixed results among users since it creates an inconsistent discount model. • Innovative way to drive purchase demand outside of the “easel outside a door that says take an extra 25% or 30% off” • Sparked conversation on Gap Facebook page around strategy to maximize discount Reference: http://adage.com/article/news/gap-kicks-daylong-online-deal-promotion/149411/

21. Appendix: Parent-Child

22. Parent/Child Hierarchy: Example Deal Push 1: All Stores (must push 4x) Example Deal Push 2: Only West Stores (push 1x from the West Region) Central East East West Central West Page hierarchies can only be set once, and only have 1 level. Thus, decide how granular you need to get, and build child places at that level and then create a management structure that is 1-level up. For example, if you need to run deals by region, set up your regions and bucket stores underneath them: In this mockup, a national deal will need to be pushed 4 times, and the deal can only be pushed from regions to the 4 stores within it. There is no additional ability to be granular. You can set up Regional pages that are not “published” to help organize deals. These simply act as hubs from which deals are pushed to all child stores (ex: the above West, Central West, Central East and East pages). 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

23. Claiming Places: Claiming a place allows you to: Post to the Page’s Wall Publish a deal to a specific store (vs. from a Parent page (published or un-published) Add applications to your Places Pages We recommend that you only claim Pages if you need one or more of the above functionalities for a given location. If a claiming benefit is important at a store-level, we recommend that you claim no more than 10 locations at this time, as we don’t yet have a Page management tool that will make it easy to manage a large volume of pages under 1 Admin login. Thus, finding a page and pushing a deal to it, or updating the Wall will be very manual. When thinking about claiming individual stores, identify those that have “special needs” and would most benefit from having a separate deal pushed to them (for example, if regulations in a certain state don’t allow you to offer the same deal as you do nationally). That way, you can push individual deals (manually) to these locations: The need for such a tool to manage claimed places is a known issue; however, we don’t have an ETA for when it will be provided. West Deal Push Point * Parent child deals can be pushed to claimed children, but must be deleted if/when you desire the child store to have a different deal Claimed Places can offer special deals 1 2 3 4

24. When you make an update to the application, it automatically updates the application on all Places pages. If you only want to modify one store page, you’ll need to do so from that page specifically. Applications Your Brand Your Application In order to create a local experience that can be managed via a central location, you can build an application, and place it on all of the Places pages you’ve created. Please note: You’ll need to claim all locations in order to put an application up (without claiming a place, you can only choose a profile picture and push a deal). We recommend building this as a desktop application with its own management system (3rd party developers can help create such management systems). That way, you can manage updates efficiently, from the store level to a national level. Please note: These updates are to the application specifically, and won’t allow you to publish to the newsfeed of users. You’d need to publish as the Page to connections of that page. To do this, we’d recommend investing in a local resource, who will be the voice of your store to the members of the local community. Please Note: The desktop application management strategy only works for Places experiences, not Check In Deals. Check In Deals does not currently have an API. Thus, the Parent/Child setup you put forth should reflect how you want to distribute Check in Deals.