Social Commerce’s Tipping Point

Commerce on social channels is at a major tipping point. It’s going to succeed, or it’s going to fail. And we’ll know which soon enough. Commerce on social platforms is nothing new. Some brands launched storefronts on their Facebook pages years ago. For a variety of reasons, these never took off, and in today’s environment of Facebook tabs being deemphasized, they wouldn’t stand a chance.

Now, we’re entering the new era of social commerce as platforms roll out native commerce solutions. Pinterest now has Buyable Pins, enabling anyone to buy a product they see on Pinterest directly on the platform. Instagram is improving its ads by adding options for users to ‘Buy Now,’ as well as take other actions. Google is introducing a buy button in search results, while adding a click-to-shop CTA to YouTube videos. Then we have both Facebook and Twitter testing buy buttons of their own.

Social commerce is the new video. Everyone’s doing it.

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Investing In Attention

A few weeks ago LinkedIn went public and was valued at $8.9 billion, which naturally garnered a lot of attention. The IPO was the Internet's largest since Google, and the added factor that LinkedIn as a social network is the first of its kind to go public led to a lot of interesting questions.

It's official. Social media has arrived, and LinkedIn is the first of many companies like Facebook, Groupon and Twitter to satisfy investors' yearning to invest in the latest evolution of the web.

The follow-up conversation has split in two different directions. First, is this for real, or is this another dot com bust? Second, what does this mean for marketers?

A Tech Bubble, This Is Not
LinkedIn is full of promise that didn't exist during the tech bubble of the late 1990's.

What differentiates it? For starters, LinkedIn has a user base. It's not selling the promise of users. They're already there.

LinkedIn has taken its user base to the next level by offering advertising opportunities, premium subscriptions and premium recruiting opportunities for businesses.

The point is that LinkedIn's promise is more than just a promise. It's reality. LinkedIn earns money, and it will earn more as it sees more growth in the future.

Perception of Value Is Changing
LinkedIn's IPO symbolizes more than just promise. It illustrates what marketers, platforms and content distributors already see or will soon see as valuable--attention. LinkedIn has earned attention (repeat users) and monetized them further with premium options.

This age is defined by fragmentation. Fragmented time, options and choices have in turn fragmented our attention. There's too much to focus on at any given moment, which means attention is a premium.

LinkedIn, Facebook, Groupon and others have already earned consumer attention. People go there, and they spend time there. Earning attention comes before investment takes place, and the more attention a platform earns, the more valuable it becomes.

Attention Deficit World
Supply and demand exists at the roots of economic infrastructure. Attention is a premium product, and we can expect to its value to increase as more marketers see fragmented behavior becoming the norm.

2011 Predictions: Maturing Innovation

It’s hard to believe (at least for me), but 2010 is wrapping up. The year has been full of surprises, innovation and changes that will impact marketing in the social space in 2011. What can we expect? I think the biggest change will be marketers' approach to social media, maturing as they learn what it is capable of and what it isn't, while consumers adopt and adapt to the social media world.

It's impossible to predict for sure, but with November already here, it's not too difficult to look back at 2010 to look forward to 2011. So, here’s my start to a list of 2011 predictions:

Facebook Pages Step Up Even More. In 2010 Facebook hit 500 million users. It’s massive and very active user base have rightfully earned it the attention of marketers. 

Facebook Pages are going to be how brands move into interacting with consumers in 2011. Micro-sites will become Facebook tabs (not stand-alone sites), in conjunction with the Wall to generate ongoing engagement.

Listening to Learn and Listening to Engage. There’s a ton of conversation out there, and if it’s not about your brand specifically, there’s certainly conversation about your competitors or category that can lead to incredible insights. 

2011 will continue 2010’s trend of marketers listening to online conversation to learn who is talking, what they’re saying, where they’re saying  it and how they’re communicating to extract insights.

More marketers will see that the real-time nature of social media allows them to monitor for crises, identify advocates and build relationships, while making it one of the first and primary methods for consumer communication.

Shopping Goes Social and Mobile. Consumers will continue to make shopping a social experience in 2011. Whether it’s making a purchase on Facebook, reading and writing online product reviews or working together for a deal on Groupon, consumers will continue to work together to make purchases.

In addition, as phones continue to cost less, they will become a primary mechanism for making purchases of physical goods. Right now, people have no problem paying for digital goods, such as apps, from their mobile devices, but soon services like Square will make payments card-free.

Deeper Social Integration. Marketers will continue to direct customers to their social platforms through their various touchpoints, but 2011 will bring an increase in brands that integrate content from their social platforms, including adding open-graph functionality to Web sites, adding real-time Twitter feeds and sharing content via YouTube.

Location, Location, Location Matters. 2010 made checking-in common terminology, and 2011 will make it mainstream behavior. Marketers will continue to look at Foursquare, Facebook Places, Gowalla and other geo-location services to deliver contextually-relevant marketing.

Blogging Grows and Becomes Easier. Twitter, Tumblr and Posterous are a few of the platforms that make sharing interesting information with some context incredibly easy. Blogging no longer has to be time-intensive with these mini-blog platforms. 2011 will continue to be a year of sharing information created by others with original contextual commentary by the poster.

Reputation Matters. How you come across online will matter more than ever in 2011 and consumers will behave as such. LinkedIn and Facebook profiles, as well as Twitter accounts, will grow in importance to both job recruiters and job applicants. Up-to-date profiles that reflect a positive lifestyle will grow in importance to maintaining positive offline reputations.

Social Gaming. Xbox LIVE, the PlayStation Network and…. Facebook? That’s right, gaming is no longer limited to the common household names. Zynga has brought Farmville to 62 million active users on Facebook, and more social games are hitting Facebook as well as mobile devices where consumers spend real money on virtual goods.

With all of the users spending money, social games will continue to garner interest from marketers.

Innovation Refinement. The landscape has changed dramatically, but no one has figured out the magic formula. 2011 will bring refinement to what is already out there as platforms and tools start to mature a bit more. Industry standards and processes will be established for 2010’s creations, while new innovations will raise more questions (I can’t wait).

What Else? That’s my list so far, but it certainly doesn’t encapsulate everything. What do you think 2011 will bring?