Tag Archives: e-commerce

Fastest Growing Online Retail Channel: Social Media

Written by: Hannah Redmond
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Social for retail is a growing space, from embedded Buy buttons on social to referring traffic to retailers’ websites and apps via social posts. Platforms are creating more and more options for brands and consumers, and brands need to consider social as a serious avenue for sales. According to the Internet Retailer’s Social Media 500, the top 500 retailers earned $3.3 billion from social shopping in 2014, up 26% from 2013. That is well ahead of the 16% growth rate for the overall e-commerce market in the U.S.

Business Insider recently published a report showing that social is driving more retail traffic than any other online channel. Additional findings below:

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Key points from the report:

  • Social media increased its share of e-commerce referrals nearly 200% between the first quarters of 2014 and 2015.
  • For retailers to maintain these social gains, they will need to pay special attention to mobile, where social engagement with retail content is still limited.
  • Facebook continues to grow its lead as the dominant social commerce platform. Facebook accounts for 50% of total social referrals and 64% of total social revenue. The site’s changing demographics could make older consumers a strong target for retailers leveraging the platform.
  • Pinterest is a major social commerce player despite a relatively small user base. The pinning platform drives 16% of social revenue despite an audience 6.5 times smaller than Twitter. New buy and action buttons on retailer posts should make Pinterest an even stronger referral and revenue engine for brands.
  • Twitter is losing its influence for mass-market merchants, but it could still have a role to play among sporting and event marketers, especially for location-based promotions. Recently, NFL and NBA teams have used Twitter to sell game tickets and merchandise.
  • Instagram doesn’t drive significant sales activity for retailers, but high-end companies have been leveraging the platform for branding purposes. New Buy buttons on paid posts, as well as increased targeting capabilities, could make the app a more important direct-response driver.

It is no surprise that people are spending more time on social not only consuming content but also making purchase decisions, and ultimately purchases. As we think about helping our brands navigate the digital space, social provides enormous value for retail, mobile, and beyond.

To read the Business Insider article that inspired this post, click here.

Headlines & Stuff

Written by: Christy Wise
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Here are some cool things we read about this past week:

YouTube has added new real-time reporting to its analytics dashboard that provides view counts down to the minute for your videos.  The new report is available for channels, groups with less than five videos, and content owners.

 

More changes are coming to Facebook’s News Feed Algorithm. When deciding which posts to show to which users, the social network will now give greater consideration to timeliness and activity-based relevancy. Facebook explains: “There are some instances where a post from a friend or a Page you are connected to is only interesting at a specific moment, for example when you are both watching the same sports game.” Users will now be more likely to see “trending” stories in their News Feed – but only after a “friend” expresses interest in such a story. Early testing showed that this change led to a 6% increase in post engagement.

 

YouTube this week announced that it will begin footing the bill for new videos from some of its top creators. The move is intended to help its homegrown stars produce high-quality content for their millions of fans.  More than 1 billion viewers visit YouTube every month, and daily watch time is growing at 50% annually.

 

Twitter released an internal study this week that found networks and studios that live-tweet during their popular programming can dramatically boost followers and Twitter mentions. Posting from a show’s Twitter handle, like @GameofThrones, increases total Twitter conversations by 7% during television premieres. Having a show’s cast members live-tweet is even better – increasing total tweets by 64%.

Global Social Media

Mobile commerce continues to grow exponentially in Asia. For retail marketers, that means they must develop an effective and transactional mobile presence. China is leading the way when it comes to mobile retail. A whopping 94% of those surveyed own a smartphone and regularly use it to make purchases, redeem coupons, and send gifts.

Noteworthy Campaigns

In the ’90s, Coca-Cola had a “fully-loaded citrus soda with carbos” called Surge. Internally it was developed under the moniker “MDK” or “Mountain Dew Killer.” Unfortunately that wasn’t the case, and the product didn’t last more than a couple of years. But, the soda is making a comeback (a reSURGEnce? Get it? Get it?) thanks to a Facebook campaign called “The Surge Movement,” which has 150,000 followers. Based on the demand, Coca-Cola decided to reinstate the product, selling it exclusively through Amazon at $14 for a twelve-pack (yet another sign that CPG brands are seeking more online sales). Within hours the first batch of Surge sold out.