There's a lot of research floating around on the value of a social connection, but Eventbrite, an online ticket-sales startup, released a report showing just how valuable social sharing can be when it comes to selling tickets to events.
Some findings: A link shared on Twitter nets the company 43 cents in additional ticket revenue. An event shared on e-mail through its "e-mail friends" feature turns into into $2.34 in ticket sales for the company, LinkedIn equals 90 cents. But what's the most valuable share of all?
Turns out it's Facebook. Eventbrite nets an additional $2.52 in sales when a user shares that they plan to attend an event on their wall.
"We wanted to measure the transactional value of a share," said Julia Hartz, company co-founder, adding that in 2010 Eventbrite sold $200 million in tickets, double the amount in 2009. Eighty employees hunched over computers in a loft area created a comforting keyboard clack as inside a glass walled conference room marketing director Tamara Mendelsohn explained that while "social commerce" is not a new behavior, it is a new channel for e-commerce. "The social network drives real measurable transactions," Ms. Mendelsohn said.
Eventbrite has processed closed to 9 million tickets this year. "Processed" and not "sold" because in addition to events that sell tickets, the company allows organizers to create, promote and offer tickets to free events at no charge. Eventbrite charges the organizers 2.5% of a ticket's price as well as 99 cents per ticket sold. Eventbrite says its average event nets $60 in ticket sales.
Earlier this month the company raised $20 million in venture funding from returning investors Sequoia Capital, as well as DAG Ventures and Tanaya Capital.
|ABOUT THE AUTHOR|
Irina Slutsky has been in the Bay Area tech scene since 2004. She worked as an old-school newspaper reporter in Florida and New Jersey. She was born in Kazakhstan, like Borat.