MUMBAI: Social networking site Facebook is looking to tap the rising enthusiasm in India for online shopping by launching a shopping festival named Tied Together on the occasion of Raksha Bandhan. The plan involves setting up a website in association with media agency conglomerate GroupM between August 12 and August 29, the day of the festival.
Media agencies said Facebook’s pitch note said brands can “unlock the power of social media that can reach 10 crore potential customers through this event. “Facebook’s role will be to use its subscriber base and social networking platform to drive traffic to the shopping site.
Participating companies will have to pay a fee that will be shared by Facebook, GroupM and other media agencies. Facebook, which has 11.2 crore users in India, is said to be looking for a title sponsor at an asking rate of Rs 3 crore and a principal sponsor at a similar rate besides associate sponsors for Rs 1.5 crore each.
Facebook and GroupM didn’t respond to emailed queries.
“Online shopping festivals have become a popular trend in India, especially with the rise in the number of e-commerce companies, which are driving the growth of online shopping in the country,” a media planner said. “Facebook should be viewed as another media vehicle which has a huge database that can be utilized for commercial purposes.”
Last October, Google held a shopping festival in association with GroupM and Amazon called the Grand Diwali Mela. A year before that, Google launched the Great Online Shopping Festival. Earlier this year, Google held the Great Indian Travel Festival (GITF) in association with media agency conglomerate IPG Mediabrands.
In July, Magicbricks joined hands with GroupM and Google to launch a property festival that will be called the Great Online Home Festival. “Companies like Amazon, Flipkart and other e-commerce companies can host an online festival on their own website. But companies like Google and Facebook need to create a new one to host a shopping festival. The idea is to create online intellectual properties (IP) and to make them annual events,” said another media planner.
Companies like Google and Facebook charge advertisers on a “per click” basis that ranges between 50 paise to Rs 100 and Rs 2 to Rs 20, respectively, “depending on the customer-targeting options that they choose,” said the planner. They will charge a fee for sponsoring these festivals on their website. “For media agencies that associate with such events there are no immediate financial returns and it is a long-term plan,” he said.