Facebook recognizes virtual gifting phenomenon

Technology news site TechCrunch reported that Facebook is abandoning its physical gift giving program in favor of a virtual gift card scheme. TechCrunch said that digital gift cards and Facebook's proprietary gift card credit program comprise 80 percent of Facebook's gift giving sales.

Facebook Gifts launched in September 2012. The service tracked Facebook user behavior to offer users personalized gift giving suggestions. Gifts chosen by users, such as chocolate, stuffed animals and even liquor, could be physically shipped to Facebook recipients. But physical gift giving made up only 20 percent of sales, according to TechCrunch.

TechCrunch said Facebook found that targeting Facebook users with individual gift giving suggestions was not as popular as users choosing to give more general virtual gift cards to favored brands and businesses. Ggift credits to Starbucks and iTunes were the biggest sellers on Facebook, TechCrunch noted.

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