14 Responses to “Is the future of social commerce on Facebook?”

  1. Hello bloggers I’m working on a project that asks you a simple question. It’s actually a survey. Would you be able to answer the question PLEASE? Read it, And ans me with YES or NO. “Would you use a social networking site if you had the potential ability to earn compensation for joining, using the site and recommending it to others to also join and use?. Yes or no?”

    • Michael Olson

      Hi Joe, thanks for sharing Michael Lazerow’s presentation. This is really excellent content, and more evidence of demonstrated ROI from social commerce.

  2. Privacy concerns makes Facebook a black hole as far as commerce is concerned. Anyone who operates an ecommerce site can testify to that.

    Facebook is only good for brand reinforcement.

  3. The book sounds good, Thomas. I’m going to pick it up. :)

    Liked the article. This is definitely new territory, and there is a lot to learn. In my opinion, social shopping experiences can learn a lot from what social games are doing. Still, lots of discoveries to be made and I’m sure this space will evolve rapidly.

    One of the key points the article made is on the analytics front. Traditional packages definitely do not translate well to social scenarios. However, does anyone have experience trying to apply newer analytics packages like KISSmetrics or Mixpanel? Or Kontagent seems like it’d be perfect, since I know they are the biggest and best in analytics for social apps and games, but do they support ecommerce?

    • Michael Olson

      Thanks for the comment, Tim. I am puzzled by the social advertising strategy of many brands on Facebook. As I pointed out in a follow-up piece today, traffic directly to a retailer’s product pages tends to convert at the highest rate – http://gigaom.com/2011/09/04/3-ways-to-build-social-commerce-on-your-site/. If customer acquisition is my goal, I don’t see why I would send hard-earned traffic from social ads anywhere else.

      This paradigm exists for brands in other verticals as well. I’ve come across several examples of content sites and brands with a CPM revenue model that send traffic from Facebook ads to their fan pages. This is a useful tactic if the objective is to build community ON Facebook. But if your revenue model is dependent upon serving ad impressions and commanding higher CPMs, shouldn’t the objective be to drive traffic directly to your site?

  4. lawrence serewicz

    This is totally the opposit of what social media is. People do not go on facebook or twitter so they can be marketed to or to “hear” about a product being shilled or “promoted” by their “friend”. Good grief. Who are these social media “experts” telling people to “fish where the fish are”. Do they get paid for saying stuff like that? Who is paying them to hear stuff like that? I thought this was a spoof article at first, but it is so serious that I now realize that it is said in all earnestness.

    What next Plato brought to you by Nike and Mao brought to you by the makers of your favourite laxative? If I want to be marketed to I will go to where there is marketing.
    Next we will have virtual holographic advertisements following us through the streets of major cities “marketing” to us. Egads, we are truly entering the world of Philip K. Dick.

    • People do appreciate value in areas in which they are interested. If they aren’t interested, no one is forcing them to look at anything. As an experiment, why don’t you make a rule that you will absolutely not look at anything of a commerical nature on Facebook and see on how long you last. When something of value to you is presented you will have a hard time resisting. If nothing ever intrigues you, then at least you’ll know you’re not like the other 749,000,000 people on Facebook, because businesses are doing extremely well marketing there, so someone must be appreciated what they are doing!

    • Lawrence, my clients pay me to hear that. they want to sell to you. in fact they already are interrupting your attention to put their messages in front of your face…hundreds of times per day – everywhere you go. Wherever there are gatherings of people, ads will follow. how else do you think facebook and much of the rest of the internet is free for you to use?

    • Thanks for the comments, Lawrence. I think the evidence shows distinct motivations for how people actually use social networks. Facebook is used to stay in touch with personal friends and family, LinkedIn to maintain professional relationships, and Twitter as an information curating service and personal branding tool.

      Razorfish published an insightful study last winter demonstrating that most consumers still prefer to connect with brands through their corporate websites. You can read a summary of the study on the Janrain blog – http://www.janrain.com/blogs/consumers-prefer-connecting-brands-through-corporate-websites.

      This is incredibly germane for retailers, many of whom are investing resources to build their presence and cultivate sales channels directly on social networks. Obviously, it’s important to do that, but online marketers and merchandisers within the retail space also need to be thinking about ways to engage shoppers by leveraging social tools on their own sites.