So you have been trying to blow up your company or brand on Facebook, but maybe you are unclear of the results because you have focused on driving sales on Facebook itself, and it has not achieved the results you expected. Repeated marketing studies have shown that Facebook storefronts have not been a leading source of e-commerce transactions, despite the platform’s huge user reach.
According to a study released by ThreatMetrix in partnership with the Ponemon Institute, Only 20% have purchased something directly within Facebook, despite ongoing direct exposure to products through Facebook. That this is do in large part to the social nature of Facebook. Consumers are glad to learn about, share opinions, or even be rewarded for interactions with brands they like, however studies indicate that many consumers feel that Facebook is the wrong place to be urged to complete transactions due to its more “social” environment nature, and more likely to distrust motives of brands that do.
In practical terms you could liken it to someone showing up at a gathering of friends and urge everyone to immediately buy a sweater from them, like the cool one they are wearing. Maybe the sweater is cool, and people may want to learn about it in casual discussion, to later make a buying decision. It is not the time, however, to be hawking the actual product.
A separate study, by Oracle, found that whooping 34% of American and Canadian consumers said they would never purchase products via a Facebook page, while only 10% said that they had done so. There is also concerns of security with Facebook stores as a ThreatMetrix /Ponemon Institute study show that 53% of consumers fear that Facebook stores are less secure in protecting them against fraud than typical internet storefronts. Clearly there is a perception issue here.
So does this mean that Facebook order pages and storefronts should be avoided? Certainly not, and there may be special considerations for some direct marketers as well. While Facebook stores may not be best for many brands and companies, it appears to come down to approach. Studies show that the businesses successful with Facebook storefronts are high touch businesses where customers have close relationships with the brand and commonly deal with all customer contacts on a highly personal level and have a one-on-one–relationship, which lends itself to trust. Custom services, personal/consultant type services, and “luxury” type brands are key examples of those that come out on top in studies.
So what does this mean for your business? It means that if you have intentions of selling directly to customers on Facebook, examine your business and the level of relationship with your customers and decide if it is right for you. You must first build a strong relationship, and be able to build higher than usual levels of trust where your brand has a high level of personal touch with your customers and prospects, then you can extend your relationship with direct sales on Facebook in your advertising and marketing campaigns.
Filed under Advertising, Brand Building, Internet Business, Media Buying, Social Media by on Jan 10th, 2012. Comment. 
As most marketers now know, mobile buying influence in the market continues to rise and studies show that at the end of 2011 as much as 20% of purchases occurred or were heavily influenced directly by mobile devices.
A new study also shows that consumer sentiment views tablet and smart phone devices as secure as using typical desktop or laptop computers for making purchases. According to a study by ThreatMetrix in partnership with the Ponemon Institute, 51% of consumers believe the fraud risk is the same on a smartphone, tablet, laptop, desktop devices. Almost one third believe that mobile and tablets may actually be more secure. Only 19% say they believe fraud risk is higher on tablets and smart phones.
This combined with ongoing data showing the quick growth in the use of smart phones and tablets, combined with market confidence indicates that the quick growth in mobile devices with continue and that the proportion of sales is going to proportionately increase as well.
Meanwhile , smart marketers will continue to look forward in how they can utilize mobile within their businesses marketing campaigns and develop mobile specific tactics, so they can make the best use of this trend, growing sales.
Filed under Advertising, Marketing Analytics, Media Buying, Mobile Marketing, Social Media by on Jan 8th, 2012. Comment.
MSNBC has redone their site as a “one page format” so that they can stop the pageview metric, commonly used to value websites and banner advertising campaigns. They now have 30 different ad combinations, but banner ads are not among the offerings. Does this mean that they are dead, as stated by one MSNBC.com spokesperson?
Clearly some publishers have a reason to want them to be. They don’t get the fees they would like to charge on these ads, and from a consumer response perspective, many seem to have become “blind” to banner ads in many cases.
Many reasons are given for this, and we do not wish to speculate, however when several experts were asked for their opinon on banner ads, none seemed to believe that this format is dead. Instead it appears to be undergoing an evolution, and smart marketers are learning how to create responsive banner ads that viewers will click.
Savvy marketers have discovered that they are able to buy up these ads cheaply, and when formatted properly, for actual response rather than simply being “pretty,” “clever” or “creative,” are able to receive an excellent ROI.
Another perspective on this issue comes from the likes of Brendan Star, digital media director at McGarrah Media: “”Banner ads aren’t going extinct, but the ways they are used, bought, and served are.” He, unfortunately, was referring to for use in old school branding efforts, rather than actual sales and promotion, however it may turn out that these ads can have a good ROI when designed properly and used selectively.
In the mean time, don’t let anyone tell you that “banner ads are dead”, and most importantly that they do not work. While improperly designed banners may fail horribly, properly designed ads, in a properly executed campaign, can command response, and provide an excellent ROI on your marketing dollar.
Filed under Advertising, Internet Business, Internet Marketing, Media Buying by on Dec 3rd, 2011. Comment.
