Why the Facebook reward card might actually harm Facebook...

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The Facebook reward card scheme is a big coup for Facebook - it works the social network deeper into our everyday lives, making it helpful for business transactions as well as everyday socialising.

The Taggo card takes Facebook to fulfilling Mark Zuckerberg's dream of Facebook having its own ecosystem...and of everything you do involving Facebook at some some level.

But while Facebook is pushing to be at the centre of everyone's relationships, whether that's with their friend, their favourite singer or their local coffee shop -- it isn't always going to be in Facebook's favour to do that.

Because Facebook gets money from advertising.

While Facebook wants to help brands and businesses connect with people over fan pages, if they do that too efficiently then it takes away the need for advertising. Not just advertising elsewhere - papers, TV etc, but also the need for advertising on Facebook.


Why would a business pay to take out an advert on Facebook when they have a solid 10,000-stong fan base they can reach through updates...

Facebook should be careful about being too effective on here...

Any thoughts about that?

source: http://www.shinyshiny.tv/2010/11/why_the_facebook_reward_card_might_harm_facebook.html