One of Facebook’s newer features, giving gifts to your friends in real life through Facebook is supposedly not as productive as the company has made it out to be. What was supposed to be a billion dollar business, has reportedly not even broken $1 million in Q4, despite relentless advertising techniques and projected sales reports saying otherwise. To be fair, it was not released for the full entirety of Q4, but it was during the Christmas season which should be a sales booster in and of itself. Says CEO Mark Zuckerburg,
I do want to temper near-term expectations a little bit on revenue coming from other areas like Gifts or Graph Search…Payments and other revenue also included around $5 million from sources outside of games primarily user promoted posts and to a lesser extent from our new Gifts product. While we remain excited about the long-term potential of commerce on Facebook, current revenue from user promoted posts and Gifts is very small, and we expect 2013 contributions from these initiatives to remain very small given current run rates.”
Facebook was given the chance to dispute these numbers, but they declined to comment.