Boomerang,which allows users to give gifts to their Facebook friends, announced Monday that 1 million gifts have been claimed on the platform. Three-quarters of the gifts were distributed through Boomerang’s brand offerings, which are free, nominal-value gift cards from major and small brands.
Boomerang Co-Founder and CEO Zach Smith said that roughly one-third of Boomerang users log into the site through Facebook. He commented on his company’s newest milestone:
We launched Boomerang as a consumer social gifting application last year, and we quickly realized that free $5 to $10 gift cards are an incredibly engaging, high-converting way for advertisers to attract new customers. More than 20 percent of Boomerang gift recipients converted into shoppers on the gift card retailers’ websites, and many recipients were excited to share their gifts on Facebook. We saw an opportunity to turn these small, free gift cards into “super ads” and launched a suite of services to help publishers and advertisers profit and grow from this model. Our brand offerings now make up a large majority of our business.
Advertisers on Boomerang — such as Gilt City, Seamless, Shutterfly, and 1-800-Flowers — provide free $5 to $10 gift cards or promotional codes that Boomerang then offers to publishers to distribute to their customers as rewards or gifts. Advertisers pay Boomerang each time a gift card is redeemed for a larger purchase.
The company says that gifting volume has tended to double every two to three months.
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