7 Key Findings On The Use of Social Media And E-Commerce: New Study

2010 February 6


A lot of online retailers have been rushing into using Social Media as the next big marketing thing and yes it is showing some promise.

A recent study by Compete which evaluated online shopping trends, unearthed some interesting findings about the use of Social Media and online shopping, especially about Facebook and Twitter.

According to the Compete Online Shopper Intelligence study, consumers have been slow to embrace social media as a shopping resource. 

Social networking sites were ranked as the least used online shopping resource.

Sixty percent of all consumers surveyed said that they do not use social networking sites while shopping online.

When questioned further, an even larger percentage said that they never visit retailer pages on Facebook or follow retailers on Twitter. I think the rather telling finding about the above graphic is the continuing importance of email and search engines for consumers in promoting the online retailer as shown by

  • Retailer emails as never being used at only 24%  (so they are used regularly 76% of the time)
  • Search engines as never being used at only 8% (meaning that 92% of the time the consumer is using search for starting their shopping experience)

In the study, shoppers overwhelmingly said that they visit retailer Facebook pages and Twitter feeds in order to learn about promotions and sales.  Many retailers now offer Facebook Fans exclusive discounts and coupon codes for online and in store purchases.

A few have even added a storefront to allow consumers to purchase products using those discounts without ever leaving Facebook.  The bottom line is if retailers are looking for an ROI on social media, give shoppers the same thing.

The 7 key findings from the study:

  1. 61 percent of respondents indicated that they never visit a retailers Facebook page
  2. 86 percent of online retailers had a Facebook page
  3. 23 percent said they visit retailer pages less than once a month
  4. Among consumers who are fans of retailers on Facebook, 68 percent are fans of 3 or fewer retailers
  5. 70 percent of shoppers said they do not follow any retailers on Twitter
  6. Among consumers who follow retailers on Twitter, almost 2/3 of them follow 3 or fewer retailers
  7. Among those that do use these outlets, 2 out 3 responded that they use these tools to keep up to date on retailer sales and promotions

So how can retailers attract more consumers to their social media pages? The Compete study showed that you need to be offering  special deals to make the consumer visit their Facebook page.

Major takeaway from the study: “Give them a highly compelling reason to visit—provide shoppers with discount information”.

Dell and Naked Pizza have used this tactic to drive sales with their use of Twitter.

What you also need to keep in mind is the continuing importance of email and SEO.. disregard them at your marketing peril.

So are you using this strategy with your Twitter and Facebook channel?

Why Great Content Is Vital

2010 February 2


I recently read an article about how some websites are churning out content using low cost content production resources such as articles from content farms and videos from automated video production companies.

So why do these companies pump out this low value content?

  • Long tail search engine rankings
  • To monetise via either via affiliate links within content or
  • Display ad revenue, selling value by every thousand impressions.

What are the numbers? At last estimate, one such network reported revenue of  over $200 million a year.

The mass media companies with their newspapers (Text) and TV (Video)  rely on subscriptions, readership and ratings to obtain their valuable cash flow. The reason they generate the dollars is because the more valuable the content they provide the more money they make. TV shows and events such as the Super Bowl provide millions of dollars per 30 second commercial because large numbers of people value the content, nothing more nothing less.

In the social media universe of Blogs, Facebook, MySpace and YouTube the rules of valuable unique content are no different.

People read a blog because the content is interesting and inviting. People watch a YouTube video because it entertains, informs or educates.

The paradox about content is that the value is not just for the the audience but also the producer of the content. So why am I writing “content” late at night ?.. because the value provided is not just for the reader but for me.. yes me (the selfish writer). So what do I get out of it?

  • Tired in the morning … Yes
  • Red Eyes.. Yes
  • Slightly annoyed partner.. Yes
  • Worn out Keyboard.. Yes

All of the above is true but the real essence here is that to write this, I had to read (love reading), learn (love a bit of learning), think (now that is dangerous) and discipline myself to.. not watch TV or play…but  to sit down and write this post. I gain insights and learnings that provide me, the writer with value that is very hard to measure on an ROI level. ..a content production farm does not float my boat, it doesn’t give me juice or passion.

So what are the benefits?

  • Possibly positions me as a thought leader
  • Helps me gain a little bit of credibility
  • Meet great people through comments and Tweets
  • Constant learning
  • Improves my blogs SEO
  • Increases my subscriber count through growing traffic
  • Positions me to maybe monetize my blog
  • Delays Dementia

So why do you write your blog or publish your VBlog?

Social Networks: 10 Contagious Attributes

2010 February 1


There are 6.6 Billion people all around the planet forming a gigantic social network. At some point somewhere in this network, an idea is cooked up in the brain of one person, or sometimes a few people  – a node or a small cluster of them.

From there the spread begins. This is Social Networking.

The power of an idea that springs from love, passion and energy is hard to contain. The book “Cold Mountain” started with this embedded.

It is a story told by a father to his son about his great-great-uncle, a Confederate soldier who deserted from the army while recovering from his battle wounds. The son finally wrote a 449 page book from this thin outline. The book finally found it’s way to a professor of social psychology who included it as one of the options for a graduate-student project.

Typical communication in the age of mass media start with two steps

  1. Mass Media to Network Hubs
  2. Network Hubs to the rest of the population

But “Buzz” refuses to follow neat patterns. Cold Mountain’s buzz didn’t start from the traditional marketers text book .

So what made the book spread? What were the contagious attributes?

  1. A tremendous amount of energy and passion behind the book from the author to the publisher.
  2. There is no substitute for good writing
  3. Time and money put behind a product. ..the publisher spent hours walking the shelves at Barnes and Noble writing down the names of 150 authors who they felt would be interested in in reading “Cold Mountain”
  4. Your believers back you every step of the way
  5. Every one in the chain of influence put in time and effort to promote it
  6. It was on the best seller list – creating more momentum
  7. Trust – Buzz travels with less friction on channels built with trust (eg ..this is a comment I recieved today on my blog “ For me I only follow links that have great descriptions about what to expect when clicked. Like I clicked on your tweet about this survey that was retweeted by someone I follow.”
  8. Credibility- no matter how much credibility one has has the best buzz comes from third parties.. not the company putting out the product itself.
  9. The Word of mouth is passed on authentically- it is un-coerced
  10. Recognition from your peers – in this case other publishers

So does your blog, book or ebook have contagious attributes?

10 Principles At Work In Creating Buzz In Social Networking

2010 January 31


Last Christmas break was a busy socializing extravaganza with family, friends and business colleagues. There was much wine consumed, gifts given, food eaten and stories told, both tall tales and true. Superficial but interesting conversations were engaged on topics like movies recently watched ..such as “Avatar” and  questions such as … “Is it a paradigm shift in the way we watch and consume movies?” and is it a movie worth going to see?

Most of these conversations were offline and face to face. Some conversations were about social media and social networking and we discussed issues such as “Does Social Media trivialize real human social interaction because it is not face to face?”

On a plane tonight coming back from a weekend on the Gold Coast, where I caught up with friends and family, I read a book by Emmanuel Rosen titled “Buzz..Real Life Lessons in Word Of Mouth Marketing” that discusses the viral effect of conversations online and offline and how word of mouth spreads, especially in how it relates to marketing.

Some of the questions he asks and discusses are

  • How do you create far reaching influence or a “Global Cascade” of conversation?
  • Do you need to find the “Influentials” that  are the gatekeepers to social networks to start the conversation Buzz?

or do you you only have to find a “Critical mass of of easily influenced individuals”  to create far reaching influence.

A study by Dodds and Watts in 2007 in the Harvard Business Review was about how “Social Epidemics” occur where recommendations for a product like Avatar can be promulgated and enhanced through conversations with friends and colleagues. They found that if three friends recommended a product or brand to a person, in most cases it had no influence but with the fourth mention in the positive that they became “infected” and spread the gospel for that product. So with that, Rosen went on to list the 10 principles that he believes are at work in social networking which has a high degree of relevancy to social media.

So what are the 10 principles at work in Social Networking?

1. Social Networks are Invisible...even in the age of social networking sites such as LinkedIn, Facebook and MySpace

No matter how hard you try you cannot find the “strength of the tie” and this comes down to

  • the privacy of the networks
  • people don’t reveal their true network ties
  • there is a lot of  noise in the data that comes from these sites

2. People Link With Other Who Are Similiar To Them

An example of this is that each sport has it’s own social network, Golfers hang out with golfers and compare notes on things like golf clubs. This “Homophily Principle” has 2 basic implications

  • They tend to form clusters
  • The more similiar your employees are to your customersthe easier the communications will be

3. People Who Are Similiar To Each Other Form Clusters

This can be simply shown with examples of why do Hells Angels travel in packs or girls in second grade play together. Clusters can informally adopt products together such as “Apple” fanatics.

Note: If you product becomes becomes the standard within a cluster , it makes it dificult for competitors to uproot you from this postion.

4. Buzz Spreads Through Common Nodes

This means that even though we as human beings might have only “6 degrees of seperation” that transferring buzz between different structures or nodes has a high degree of friction.

5. Information Gets Trapped In Clusters

You can have different clusters in the same building or company such as Marketing and PR. Spreading buzz from one group to another is rare. It normally means that a story can be trapped within the marketers or PR.

6. Network Hubs and Connectors Create Shortcuts

There is an example of some German Birkenstock sandals that were discovered by an American Margaret Fraser on a visit to a Yoga trainer in Germanywhere she discovered these really comfortable sandals that on taking them back to the USA and became the master distributor that have now become a $120 Million dollar a year business. The connector enabled a quick way to get the product discovered on the other side of the world.

Note: Venture capitalists are also a good example of the role of the connector between “clusters”

7. We Talk To Those Around Us

The Internet does cross geographical boundaries but those that are in close proximity are the ones we still influence with the most ease

This highlights the following

  • Geography still matters
  • 74% of all comments are transmitted through simple face to face conversations (Keller Fay, 2007)
  • When marketing a product or service that you hope will have a a national or global appeal. It is important to create a presence in every geographical location.
  • Traditional marketing based on Zip codes, database marekting and bricks and mortar locations is still important

8. Weak Ties Are Surprisingly Strong

A study in the late 1960’s by Mark Granowetter of Harward showed

“Word of mouth through acquaintances had significantly more impact than word of mouth with close friends and relatives”

The takeaway on this – people outside of our close networks are important in bringing in fresh data – in other words diversify your connections.

9. The Net Nurtures Weak Ties

It’s easy to maintain weak ties on the Internet. The increase in weak ties on the internet can explain why information travels much faster today. The Internet creates millions of shortcuts of weak ties that bridge social clusters.

10. Networks Go Across Categories

Politicians used to be able to take one message to a core group of supporters  and a different one to the general public but not now. The internet and the new social networking channels are blurring the lines among different categories. What  was once a private message to the loyal followers is now public conversation within seconds and minutes.

So how could you apply these 10 principles to creating buzz about your product or service?

Is Twitter Tanking? An Update

2010 January 27


The lack of transparency from Twitter on its traffic including its domain and API traffic from sources such as Tweetdeck and Hootsuite are surprising and mystifying unless it’s a secret strategy by the Twitter team to keep the Twittersphere guessing.

Some of the comments on my recent blog “Is The Twitter Fad Fading?” regarding this lack of numbers, reflects the interest in the actual  Twitter traffic trends and growth.

“It is incumbent on Twitter as a company to EITHER publish their own internal traffic statistics, OR to publish a method that 3d parties can use to objectively measure their traffic”

This frustration  is not surprising as many people have built their business around Twitter.

The announcement on Twitter by the CEO Evan Williams on January 11, 2010 was at best just a bland non specific statement that offers no comfort…it’s like a salesman saying “just trust me”.

A recent post byJohn Borthwick on his blog “Think Musings” may provide some encouraging news.

  • Twitter: Jan 11th was the highest usage day ever (source: @ev via techcrunch)… but no numbers Evan!!
  • Tweetdeck: did 4,143,687 updates on Jan 8, yep 4m. Or, 48 per second (source: Iain Dodsworth / tweetdeck internal data)
  • Foursquare: Jan 9th biggest day ever.    1 update or check-in per second (source: twitter and techcrunch)
  • Daily Booth: in past 30 days more than 10mm uniques (source: dailybooth internal data)
  • bit.ly: last week was the largest week ever for clicks on bit.ly links. 564m were clicked on in total. On the Jan 6th there were a record of 98m decodes.    1100 clicks every second.

Another chart that John highlighted was of the growth of Twitterfeed from  September 2009 to December 2009 showing growth of over 300% in Feeds processed.

The cynical view that you could take on this is, that the Twitter users are being more active in their use of Twitter and the Twitter apps are showing significant  growth but the  Twitter subscriber base is flatlining.

Come on Evan show us your Twits.

What are your thoughts?

Is The Twitter Fad Fading?

2010 January 25


Twitters growth from 2008 to 2009 was nothing short of stratospheric with growth headlining at over 1,300% .

Shows like Oprah and celebrity users such as Ashton Kutcher also provided popular mass media promotion that fed the Twitter craze.

In 2009 it went from 5 Million users to 30 Million users in 6 months.

In recent months Comscore, Quantcast and others have even reported declines in traffic as measured from the Twitter domain.

Blogs such as Forrester, Scobelizer, Mashable and Techcrunch have provided a variety of reasons for this trend such as.

  • “Twitter’s growth isn’t stalling. Rather, these stats aren’t capturing Twitter users utilizing apps, a growing chunk of the Twitterverse”.
  • “Twitter itself has a limited appeal. Only a small amount of people “have something to say” on a consistent basis.”
  • “They potentially undercount overseas users”.
  • “They potentially severely undercount users who use clients like Tweetdeck or Seesmic.”

Note: I just did a count of my Twitter stream and out of 100 only 12 were tweeting from Twitter, so the possibility of a severe underestimation of Twitter users is very possible as the calculations for Twitter traffic are only measured from the Twitter domain, not the Twitter apps such as TweetDeck that interface to the Twitter API .

So what are some of the developments and profiles of the maturing Twitter user?

I certainly have observed that the average Twitter user is maturing in their usage and the  Twitter adolescent stage is evolving as people find more business solutions, applications and commercial uses for Twitter (much to the consternation of the fundamentalist Twitter traditionalists). This is confirmed by a recent Forrester report which says:

“Twitterers are the connected of the connected, overindexing at all Social Media habits.  For example, Twitterers are three times more likely to be Creators (people who create and share content via blog posts and YouTube) as the general US population” . As reported in a Forrester report “Who Flocks to Twitter

Also a comprehensive look at the state of the Twitter universe is found with Hubspots “State of the Twittersphere Report – January 2010” where they have analyzed some of the key trends and changes that are emerging on Twitter which also highlights the maturing of Twitter.

This is a summary of their findings .

  1. The average user is following more people, followed by more people and has posted more updates.
  2. Bio in Profile 24% in July 2009,  53% in January 2010
  3. Location in Profile 31% in July 2009, 65% in January 2010
  4. Web Address in Profile 20% in July 2009,  41% in January 2010
  5. 15% of the top 20 Twitter locations in July 2009 were outside North America compared to 40% of the top 20 Twitter locations in January 2010 outside North America
  6. Top location in July 2009 – London and still No. 1 in 2010
  7. 82% of Twitter users have less than 100 followers
  8. 81% of Twitter users are following less than 100 people
  9. Thursday and Friday are the most active days on Twitter, each accounting for 16% of total tweets in our study
  10. 10-11 pm is the most active hour on Twitter, accounting for 4.8% of the tweets in an average day

I am still trying to find the real numbers on Twitters growth or lack thereof, though it appears though that it is still meeting a real need that  keeps many people occupied. Like me!

At this stage I think it is still “watch this space”.

So what are the real Twitter facts and figures in 2010? If you know, would love to hear from you.

25 Blogs to Inspire You or Maybe Depress You

2010 January 23


The continuing development of the power blogger within different industry sectors, niches and micro niches is another demonstration of  the Web’s power to continue to influence and change the “Information Age’s” landscape.

The bloggers new found ability  to spread their content through social media in recent times with great effect and leverage is raising some interesting scenarios especially with Rupert Murdoch’s News  about to start to charge people for news and content on his newspapers and magazines worldwide

Cnet News in a 2005 article had this to say “Will bloggers upend the mainstream media? What legal protections should bloggers have? Is there a blogger business model? While no definitive answers exist just yet, experts at Wharton advise questioners to be patient. Blogging, they note, will be around for a long time”.

A Wharton legal studies professor Dan Hunter puts blogging right up there with the printing press when it comes to sharing ideas and disseminating information.He said “This is not a fad, It’s the rise of amateur content, which is replacing the centralized, controlled content done by professionals.”

Another Wharton legal studies professor Kevin Werbach also says “At its most basic level, it’s a technology that is lowering the cost of publishing” and turning out to be “the next extension of the Web,” says . “Blogging is still in its early days. It’s analogous to where the Web was in 1995 and 1996. It’s not clear how it will turn out.”

What is clear is that opportunities for blogging abound.

  • Companies can use bloggers to put a more human face on interactions between employees and customers
  • Marketers can create buzz through blogs
  • Bloggers can act as fact checkers for the mainstream media.

There are dozens of applications for blogs, Werbach notes, and many that haven’t even been conceived yet. To be sure, the concepts behind blogging aren’t exactly new.

Some of the subscriber counts of these blogs is in the millions such as Huffington Post and TechCrunch.

This list is to challenge and inspire you as a blogger in what can be achieved and some examples of blogging best practice and success.

So here are the “Best 25  Global Blogs” as selected by Time Magazine that cover topics from politics and global affairs to shopping and sports. And, yes, a few about nothing, too.

Best 25  Global Blogs (as selected by Time Magazine)

Two things are certain: Blogging will remain disruptive to the traditional media, and new uses will surface. “You are going to see blogging move to video and instant messaging,” says Werbach. “It’s just the beginning.”

In fact Video blogging by 2010 has become mainstream.

Have you been inspired as blogger or just plain depressed by the spread, depth, ideas and creativity on display?