Social e-commerce seems to be the new buzz word going around the blogosphere for the past few weeks. But what exactly does it mean? Other than having a strong association with Facebook, I really wasn’t sure. So I decided to try and figure out what all the hype was about.
It has long been known that word of mouth is one of the most effective forms of advertising. But now with the advent of social media, we can begin to actually back this observation up with stats and figures. Where social e-commerce comes into play is when marketers can directly link revenues to social networking activities such as Facebook status updates. Where this has proven most successful is when it comes to events such as sports and concerts. It would seem as though the industry would be overjoyed about the opportunities that could be brought about with social e-commerce, but there are some critics out there.
There is some research that is showing that conversion and click through rates are lower coming from Facebook than those coming from Email marketing campaigns and paid search advertisements. I guess only time will tell if Facebook social e-commerce is going to prove to be a useful tool for brands in the long run.