Facebook Doubles Down on Its Messenger App -- Update
April 12 2016 - 6:55PM
Dow Jones News
By Deepa Seetharaman
Facebook Inc. said Tuesday that it is working with more than two
dozen companies on a new initiative aimed at turning its Messenger
app into a hub for shopping, news and entertainment.
At its annual F8 conference in San Francisco, Facebook showed
developers how to build so-called chatbots in the app to field
customer-service questions and help people order goods, without
requiring a person at the other end of the conversation.
More than 25 companies are using chatbots in Messenger to start,
including Walt Disney Co., eBay Inc., JetBlue Airways Corp. and
News Corp's The Wall Street Journal. No money is changing hands in
the partnerships.
This marks the second-consecutive year Facebook has highlighted
Messenger at F8. People already favor the private, one-to-one
communication style of messaging apps to social networks, and the
trend is expected to accelerate.
Chief Executive Mark Zuckerberg believes messaging apps will be
central to the company in the next five years. "Messenger is going
to be the next big platform for sharing privately," he said during
his keynote remarks at F8.
Separately, Mr. Zuckerberg said Facebook is working on making it
easier to stream high-quality live video to the social network. As
he announced a new tool, a drone hovered overhead; the CEO said it
would broadcast live from the conference.
Last year, Facebook began testing ways for businesses to reach
users over Messenger, such as allowing customers to track orders
from Zulily Inc. or guests to ask Hyatt Hotels Corp. for extra
towels.
Just how many people will use Messenger to go shopping remains
to be seen. In China, Tencent Holdings Ltd.'s WeChat is a central
portal for commerce. Outside of Asia, though, people and companies
aren't yet accustomed to using messaging apps in this way.
Many companies using messaging apps to talk to potential
customers so far rely on workers to field the questions. Users
expect prompt replies. Chatbots could help expand the number of
businesses that can interact with Messenger's 900 million
users.
Facebook said the new tools, which are available to all
developers, will let companies quickly exchange not just texts but
richer messages with images or clickable call-to-action buttons,
such as "read this story" or "buy this item."
On stage at F8, David Marcus, vice president of Messenger,
showed how a person could order shoes through the app, with a
chatbot asking a series of questions, such as a preferred price
range.
Messenger helps 1-800-Flowers reach younger people and those who
only occasionally buy flowers, said Chris McCann, the company's
president. In some cases, it was quicker for customers to order
flowers through the Messenger app than over the 1-800-Flowers app,
he said.
But in cases where someone is buying shoes, for example, a
chatbot may actually be more painful than a standard e-commerce
site, said Robin Chan, co-founder and CEO of Operator, a messaging
app that uses artificial intelligence and users to help people
shop.
Mr. Chan said a chatbot format forces companies that might have
300 different shoes available to select just a few to show users.
"Putting the storefront into a straw" puts pressure on advertisers
to choose the right items, he said. "There are going to be a lot of
bad bots" over the next few months, Mr. Chan said.
A Facebook spokeswoman said the company will help partners
customize chat experiences early on.
Facebook now owns two of the largest messaging apps: Messenger
and WhatsApp, which the company bought in 2014 in a deal valued at
$22 billion. Both apps are testing ways to let businesses
communicate with consenting users, a move that paves the way for
both to generate revenue.
Messenger is testing ways companies can reach out to people who
already started conversations through "sponsored messages," Mr.
Marcus said. He said the test is at a small scale, and that there
will be a "big block button" for people to bar companies from
contacting them again.
Businesses can also buy "click-to-message" ads that would appear
in a person's Facebook news feed that would route them to a chatbot
conversation, Mr. Marcus said.
Write to Deepa Seetharaman at Deepa.Seetharaman@wsj.com
(END) Dow Jones Newswires
April 12, 2016 18:40 ET (22:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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