AmEx and Facebook team up on deals

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American Express and Facebook have become fast friends, with the companies set to announce the latest in a series of social-media initiatives Tuesday.

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  By Karen Bleier, AFP/Getty Images

  American Express and Facebook have teamed up for several social media ventures.

By Karen Bleier, AFP/Getty Images

American Express and Facebook have teamed up for several social media ventures.

Among the new programs: Card holders who link their account through a special app on AmEx’s Facebook page will receive discounts and special offers based on their listed interests and “Likes,” as well as the interests and “Likes” of their Facebook friends.

“We want to be relevant to the Facebook experience,” says AmEx Vice Chairman Ed Gilligan, as well as expose its services to the social-media behemoth’s 750 million users.

AmEx has more than 90 million card members but just slightly more than 2 million “Likes” on its Facebook profile page, which provides less-personalized offers.

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Users of the new service don’t have to print coupons to redeem at a store. Instead, they load deals into their AmEx account by hitting an online button and then get the rewards when they swipe their card at purchase.

Gilligan hopes the digital dive will increase the number of folks using AmEx cards, as well as draw in new members who hear about cool deals from their Facebook pals.

“For those who aren’t card members, this may be a reason why they should become a member,” he says, adding that this type of customer recruitment “is much more (effective) than sending a direct-mail piece to a home.”

About 100 businesses, including 20th Century Fox, Whole Foods Market, Outback Steakhouse and Celebrity Cruises, have signed on to be a part of the new AmEx program.

AmEx’s foray into social media has helped it to shed its once-stodgy image and gain a branding advantage over its less socially savvy credit card competitors, says Matt Britton, CEO of social-media agency Mr Youth.

“For a while, AmEx used to be looked at as ‘my father’s credit card,’” he says. “But with all these deals, they’re making their brand relevant to Generation Y.”

In turn, twenty- and thirtysomethings might think of AmEx when shopping for a new credit card.

Bringing its services to Facebook, rather than requiring AmEx members to go to a company site for information, also “amps up the whole notion of member benefits,” Britton says.

“A lot of brands just advertise on Facebook,” he says. “But (AmEx) isn’t just advertising, they’re integrating” their services on the platform.

In June, AmEx launched a program that allows users to redeem rewards points for Facebook ads. For every $6,750 spent, a card holder can receive $50 worth of Facebook advertising.

This spring, Facebook and AmEx hosted a contest that provides a social-media makeover for five small businesses. The winner, to be announced later this month, will go to Facebook’s Palo Alto, Calif., headquarters to learn how to best promote their firm in the digital arena.

AmEx also is aiming to court small businesses with another announcement to come Tuesday. It will launch a marketing tool that helps firms create and manage digital deals that can be distributed via Facebook or other social-media platforms.

The service, which will also provide firms with metrics related to voucher redemption and customer spending trends, will initially be free but is slated to become a fee-based offering.

“Many merchants don’t have websites, let alone do digital marketing,” Gilligan says. “We want to help merchants go social.”

As that happens, Facebook will also benefit, says Dave Martin, senior vice president of media at marketing firm Ignited.

“While there will always need to be a balance between serving their consumers and serving their advertisers, Facebook advertising is still relatively immature,” he says. “This recent move can only help them bring more awareness to their self-service ad platform.”

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