Daily Dose of iQ: Facebook Continues 'Social Commerce' Push

Oct 09, 2014 — Allan Pulga

Yesterday (Oct. 8), PC World reported on Facebook's new location-based ads, which will pop up based on whether you've walked near a physical store being advertised.

"The ad could pop up in your Facebook feed around the same time you walk by, or some time later," wrote PC World's Zach Miners.

Location-based ads will soon be popping up on your Facebook news feed.

"Over the past year or so, some smaller businesses have seen their exposure decline on the site as Facebook has tweaked its formulas for promoting their Pages. Hyper-local advertising might help to remedy that." To receive these ads, the user must have "location services" turned on, on the Facebook app of course.

In other Facebook news, Reuters reported today that Facebook still has no plans for monetizing WhatsApp, which it acquired for a whopping $19 billion back in February. Perhaps the company is just pleased people aren't messaging each other on a competitor's app anymore.

I thought Facebook would have begun porting WhatsApp's 600M+ users over to Facebook Messenger by now.

This kinda surprises me, though, because I figured Facebook would have devised a means of porting WhatsApp's 600 million+ users to the recently launched Facebook Messenger app by now.

Lastly, a few days ago (Oct. 5), Rob Lever of AFP wrote an article on Facebook and Twitter's efforts to become "shopping destinations." Some highlights:

  • Both Facebook and Twitter have unveiled plans to incorporate "buy" buttons on their sites.
  • Research firm Invesp predicts "social commerce" (i.e. sales stemming from reviews/referrals via social media) will reach $15 billion by 2015.

If 20% of Americans participate in social commerce, the market could hit $56B.Source: Harris/DigitasLBi study

  • "Sharing is a fairly reliable indicator of what people are going to buy," says Andy Stevens, head of strategy and research for Share This.
  • A Harris/DigitasLBi study found social shopping could hit $56 billion if 20% of Americans participate, noting the "untapped potential" for social commerce is "tremendous."
  • Opus Research analyst Greg Sterling says it will take more than simply a 'buy' button for social commerce to take off: "The challenge is building enought context around that 'buy' button." He suggests the buy button is best combined with research on users' browsing habits, in a process called "retargeting."

Topics: Retail Operations, Mobile Industry, e-Commerce, Retail Marketing

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