Why Social Commerce is not happening… yet

Many companies are asking when Facebook commerce is really taking off. Especially as some consulting companies like Booz see in Facebook an emerging market that might reach $30 billion within the next five years.

However people spend a lot of time on Facebook, social commerce is still low. And the reason is…? No other than those people fear in e-commerce: traditional security topics.

These are the findings of a survey that Harris Interactive did on behalf of Digitas last month in the US, polling 2,630 adults. 2,247 of them were identified as Social Media users.

The key findings of the study were…
- 75% indicate they would be more likely to purchase a product or service that a friend openly endorses via social media
- 55% don’t feel comfortable giving credit card information via social media
- 45% are somewhat comfortable however especially men between 18 and 54 with an income of $35,000 or more
- 34% are more likely to share info about a purchase they made on a social media site with friends than one made on a traditional e-commerce site
- 50.7% access Social Media sites close to a full hour per day on average via a mobile device

Spot On!
Virtual currency like Bitcoin or Facebook Credits seems to be a “NoGo” as the new currency model. 74% of the respondents stated they wouldn’t use virtual currency to pay for a purchase made on a Social Media site. Nevertheless, it seems that trust is a new link for brands to get money through Social Networks. 20% agree they would purchase products or services from their favorite brands on a Social Media site. So, another emerging trend could become that brands will use their merchandise shops and make it accessible through Social Media sites.

Pinterest: First facts & findings (infographic)

Pinterest is making the world crazy these days in 2012. Are you on it? Sure, most of the Social Media guys out there are exploring ways to make money with it. The funny thing is: You don’t need more than 16 employees to rock the Social Media sphere. That’s the actual size of the company.

A company called Lemon.ly collected some interesting data from the platform Pinterest. They found out that 10 million users are on Pinterest already, 97% of Pinterest’s Facebook fans are women, and it is obvious how the platform might have an influence on designers and marketers.

Some more findings and facts…
- 12 million monthly unique users
- 10,4 million registered users
- 9 million monthly Facebook-connected users
- 145% daily user increase in 2012

What is your perception of the platform? What is the main difference to picture and photo sharing platforms like Flickr, Picasa or Instagram? And what is the benefit using the platform from a business perspective?

Study: From Fakes to Facebook Friends

In a recent research Barracuda Networks released some findings of their study “Facebook: Fake Profils vs. Real Users” which analyzed a random sampling of 2,884 active Facebook accounts. The idea of the study was to identify key differences between average real user and fake accounts which are coming form attackers and spammers.

As of their popularity in terms of personal and business communication, Facebook is consistently fighting attackers on their network in order to save their real users from spam or even worse attacks. According to their own stats Facebook has less than 4% of content shared on their network marked as spam. By comparison we could use some stats from Symantec which found that 74% of spam comes from email – however this will be filtered before it comes to our inboxes. Nevertheless, Facebook is in a lawsuit with a marketing firm that they accused of “spreading spam through misleading and deceptive tactics”.

These are some interesting findings of the Barracuda Networks study.

Fake accounts have..
…more friends than real users – six times more!
…use more photo tagging – over 100 times more!
…claim to be bisexual – 10 times more than real users!
…claim to be female (97%!) – only 40% for real user!

“Likes, News Feeds and Apps have helped lead Facebook to its social network dominance and now attackers are harnessing those same features to efficiently scale their efforts. These fake profiles and apps give attackers a long-lived path to continuously present malicious links to innocent users.” Dr. Paul Judge, chief research officer at Barracuda Networks

The study was done with Barracuda Profile Protector tool and illustrates how attacks and spam on Facebook are structured to undercuts real “friendships” concept and trust of widely-used applications. So, marketers and private people should watch out and check before friending an account. No matter if you are more addicted to Facebook or Twitter than smoking and drinking…

Study: Active social networking engagement has tripled during working hours in one year

Are employees using social networks like Facebook or Twitter for private or business purpose? This is one of the question that management always asks me in workshops and seminars. Some new research called the “Palo Alto Networks Application Usage and Risk Report” could shed some light here. The report states explosive growth in global social networking and browser-based file sharing on corporate networks. In the last year, the activity has grown by 300% in active social networking (i.e. posting, applications) compared to 2010.

Some key findings of the study…

1. Social Media moves from passive to active engagement
Browsing Twitter at work alone grew by over 700% year-over-year which shows that the use of Twitter in the workplace has reached mainstream traction. Also Facebook usage has become more active with bandwidth consumption for Facebook Apps. Even more, Social Plugins and active engagement like posting has increased by 20% from October 2010 (5%) to December 2011 (25%) when measured as a percentage of total social networking bandwidth.

2. File sharing on social networks grows significantly
92% of the responding organizations reported that file sharing sites continue to be used on most networks. The report found 65 different browser-based file-sharing variants with an average of 13 being used in each of the organizations. The risks associated with browser-based file-sharing applications is based on the fact that these techniques are operating unchecked on corporate networks.

3. There is an evolution in types of traffic on company networks
While in earlier days, web applications using TCP port 80 were dominant, today it makes a minority of the traffic on enterprise networks for the first time ever with 25%, and 32% of the bandwidth observed. If companies don’t obey this development, it may cause problems as the standard web browsing-focused security model actually protects a minority of an organization’s traffic.

“Whether or not employees are using social networks or sharing files at work is no longer a question; this data clearly demonstrates that users are embracing and actively using such applications. Companies must determine how to safely enable these technologies on their networks so that users can maintain the levels of productivity that many of these applications can afford, while at the same time ensuring that their corporate networks and users are protected against all threats.” René Bonvanie, Chief Marketing Officer, Palo Alto Networks

Spot On!
Somehow these numbers might illustrate that companies and their bosses understand the value of Social Business and how the knowledge of employees might benefit from power of social networks. Especially the increase of the Twitter figures does not surprise at all, bearing in mind that European bosses support the use of Twitter for business purpose. And if you check out what people are actually doing on Facebook, then topics like consumer insights, work-life balance, or fun at work will reach different levels in organizations if CEOs or managing directors understand the real values of productivity.

Study: Web economy expected to double in G20 by 2016

We all know that the web economy is exploding at the moment in terms of activity and users. In the next four years the value of the web is expected to achieve a valuation sum growing from 2.7 to 4,2 trillion pounds. This means that the value of the web economy in the G20 countries is nearly going to double in the next four years.

The global web user base is expected to increase foe 1,9 to 3 million users by 2016 – almost half the world’s current population. All these findings are based on a new report commissioned by the Boston Consulting Group. Still, the report also states that there is at present no standard way of measuring the parts of web economy that is ‘digital’.

Boston sees the growth in the evolution of the mobile web access as 80% are assumed to access the web via smart mobile phones. Thinking back to 2010, which is just about two years back, mobile internet access accounted for just over 4% of the G20 economies. The study makers claim that each household has an approximate valuation of 2,000 pounds worth of purchases online before buying.

Some more key conclusions from the study…



- Digital transformation is key for companies. Companies have to build their digital assets and reduce the digital liabilities that limit their ability to tap rich opportunities. People, processes, and organizational structures need to change and adapt them to the digital world.

- IBM forecasts 1 trillion devices to be connected to the Internet by 2015. This has an effect on the ways companies interact with customers and run their supply chains but also how traditional industries have to build their business.



- Companies such as Amazon, Apple, Facebook, and Google shape the Internet, in China this might be Baidu and Tencent or in Russia Yandex.

- The power of digital experience goes far more local in terms of impact on everyday life, reflecting economic, political, national characteristics and social influences specific to individual countries.

- The “Millennials” have different expectations as employees, consumers, and citizens. TheArab Spring protests and grass-roots “occupy” movements in the West are the most visible manifestations of the power of the Millennials to shape society and commerce.

Spot On!
Seeing the rapid economical and market changes, the intensity of competition will improve and increase. Companies and brands will need to plan more flexible in terms of their strategic approaches how to reach clients than in earlier years when long-term planning cycles were the common status. Today, it will be important to create an adaptive strategy planing and restructuring process.

PS. A challenge might be if evangelist entrepreneuers like this guy spread market distraction and confusion….

The Social Media Rockstars – Community Managers (Report 2012)

Being a community manager in a company or a community center is the most popular position people can have in these Social Media times. Not only is this the person in charge of the engagement cycle of all Social Media topics but moreover that they become the main public touchpoint of the Social Media conversation of the brand or company, and thus their reputation becomes one of a kind of a rockstar…

Still, many brands and companies still hand over the Social Media responsibility to junior level people or trainees who then have to engage and manage their online communities. Would you say this is clever, or wouldn’t it be better to hand over the responsibility to a chief culture officer or an experienced market brain?

Socialfresh published an infographic and report data that illustrates the work, the tasks and capabilities that a community managers need to be able to cover. And these are some of the findings they provide.

Community Managers..
… commit most of their time with content, respectively online conversations
… 67% come from a brand side vs. 33% form an agency side
… are far more females than male (65% vs. 35%)
… have an average age of 30 years, however the 31-40 year olds make most money
… see more success on Facebook (52%) than any other platform
- gets an average salary of almost 62.000 USD

Ok, the salary is not rockstar-like but their chance to become one of the top 50 Social Media influencers is a sweet potential outlook…

Edelman Trust Barometer 2012: CEOs down, Social Media getting better…

Year on year, Edelman’s Trust Barometer checks the credibility and trustworthiness of politics, companies, CEOs and media from a quite generalistic point of view.

The findings for this year were published in the 2012 Edelman Trust Barometer, a global survey which came out yesterday in its 12th year. The survey offers insights from over 30,000 people in 25 countries with the main focus on “Informed Publics”. By “Informed Publics” Edelman sees college-educated people between 25-64 years of age that are among the best earners in their countries and describe themselves as heavy consumers of media information.

Obviously interesting for me were two things… How are people trusting CEO’s after CEO’s criticized their marketers some month ago in a study by the Fournaise Marketing Group. And also, how are consumers worldwide gaining trust in social media as a source of business information.

Let’s start with the CEOs first.

When Edelman asked respondents how credible information coming from a CEO would be, 38% replied they would trust the information. Although this sounds not bad, it is a 50% dump from last year and the biggest drop since Edelman started doing the survey 12 years ago. And although government leaders were less trusted than CEOs, in more or less all the countries responding, 49% would want to see an increase of government regulation of business.

And how about consumers’ trust in Social Media?
Well, let’s put it that way… Social Media is on the rise but still lags behind corporate websites and traditional media. So, you marketers should better not rely solely on Facebook, Twitter and Google+ pages.
The 2012 survey tells us that 14% of respondents see Social Media as a trusted source of company information — an increase of 6% to one year ago. But it’s still getting the lowest trust score of the four options shown below. This comes close to the trust in company websites (16%). Traditional media still is top of “news pops” (32%).

Spot On!
So which business is trusted most? Technology companies are most trusted with 79% saying they believed tech companies do the right thing. Indian, Chinese and the United States tech companies earn most trust, UK, France and Germany rank lower. Trust in financial services companies and banks soars, and those companies are the least trusted businesses. 47% said they trusted banks to do what is right. 45% saying they trusted financial services companies.

Who do you trust? Would you agree with these Edelman findings?

Study: Social Sign-in generates 50% more time spend on websites

Isn’t it hard to get people on websites in general? And even more to keep them there reading as much of your business information as possible? How much time do your customers spend on your site? If you are not satisfied with the results you achieve with your visitors, here is some information that might boost your website staying time.

A recent research by the SaaS technology company Gigya helps companies and brands to become more social in order to engage more with their customers. And if they are doing their job properly, their aim is always to get people from social platforms to their website for a better conversion.

The Gigya research states that companies and brands, and obviously their websites, can increase the stickiness of their desired target groups with their website just by encouraging the coming back effect of visitors through social logins.

The Gigya’s results illustrate that site owners who implement Facebook Connect, Twitter sign in or Yahoo Login will be the winners. Users spend 50% more time on websites when they’re logging in through social networks. Just imagine if users spend four more minutes after a social login – whether it be on the Web, the mobile web, or apps. All of these options were tracked by the Gigya study.

The value of Facebook Connect in terms of giving an option to easily log-in on different other platforms and sites makes people carrying around their social graphs wherever and wherever they are online. And with all these connections our closest fellows, fans and friends find our restaurant reviews, cinema recommendations and places where I am immediately. With a target group of approximately 800 million users Facebook states a case for social sign-in opportunities.

The findings also show that it is the most popular source of social logins with 61%. It gets followed by Yahoo with 15% and Google 12%. It surprises me that Twitter is only at 10% and LinkedIn just gets 2% although we have over 120 million LinkedIn user. And users who logged in with a social network double the view of pages on a website.

Another interesting aspect is that with social plugins, users generally spend the most amount of time on the site, and page impression increase does obviously follow. Companies and brands should think about integrating value-add areas with log-in or comment or Newsfeed functionalities as the later come in first when it comes to spending more time with the site. So, add a comment section.

Spot On!
Some months ago, we already mentioned the importance of social sign-in processes with a study by Janrain and Blue Research. In that study, 42% agreed that companies offering a social sign-in option “are more up-to-date, innovative and leave a positive impression compared to those which do not offer this capability” on their sites. Well, it seems I should start thinking about integrating social sign-in here… From a comment technology point of view, which option would you recommend? Livefyre, Disqus,or the WordPress standard…? Open to suggestions…

How a campaign brings multiscreen couples together

Many families, and especially couples, experience new formats of evening togetherness. Couples are not leaning back any longer and simply watching TV, or having relaxed chats next to it. With most couples, both partners are using their smartphones, tablets or notebooks to chat with friends, to update their status for their fans and keep in touch with their digital fellows while the TV sceen is fighting for viewing figures.

Did you realize that TV gets the former status of the radio in our digital world? People listen to TV but are actively engaged in something else, in another screen conversation, in a multiscreen reality. Mobile becomes the new prime time. Radio always was the number two from a user attention perspective. So is singlescreen attention today, it is out, digital leads. Multichannel is the big future, and the looser is… the personal relationship. We all know how relaxing it is to lean back, and how TV reduces our “most emotional relationship activities” to a minimum, multiscreen usage could become a limitation catalyst.

But there is hope…

CP+B has thought about this development, maybe not… Still, they tell us in a new campaign how couples most commonly book trips. They have created a 2 for 1 campaign for Scandinavian Airlines. The campaign called “Couple Up to Buckle Up” was launched in banners, emails, facebook app, or print ads, and used two unique QR codes to bring people closer together again, i.e. to book a flight to Paris together.

In the campaign approach, couples need to scan the QR code assigned to them. Then, they would sync their half of a video based offer and reveal the discount code split across both screens. Bit of a challenge to scan/play at the same time but still a nice idea on a critical relationship topic.

And maybe this will help to… Well, you decide!

Couple Up to Buckle Up from Tobias Carlson on Vimeo.

Study: Social sharing buttons in email increase click-through rates

Studies from AddThis and ShareThis have illustrated how sharing trends may boost marketing efforts and how to best use them for marketing efficiency.

The latest research from GetResponse shows the influence of social sharing on email effectiveness. The study which compared social sharing preferences of email marketers, analyzed Social Media sharing via Facebook, Twitter and LinkedIn in over 2 billion email sent by customers of the email marketing provider.

The GetResponse study also found that 51.9% only use one social share icon, while 40.6% use two of those, 7.4% three, and only 0.1% four icons. Those companies that offered at least three social sharing opportunities succeeded with a 55% higher click-through rate (CTR). The findings state that the number of marketers who include social sharing buttons in their emails increased to 18.3%. This is an increase of 40% from last year.

It seems that marketers understand the benefit of shirring for their marketing efforts: more reach, more traffic, more engagement, more sales. Email including social sharing buttons had a higher click-through-rate of up to 115%: Emails that included social sharing buttons had a 5.6% CTR which stands against 2.6% CTR for those that did not use social sharing buttons.

The infographic below shows the main results of the GetResponse’s study but also illustrates the importance of connecting all social efforts with traditional marketing to succeed.

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