07 April 2011
Forrester: Facebook Stumbles on Commerce
Perhaps Facebook is believing its own BS. http://blogs.forrester.com/sucharita_mulpuru/11-04-07-will_facebook_ever_drive_commerce the research firm is cautioning that Facebook doesn't get commerce.
In this blog article Forrester Analyst Sucharita Mulpuru lays out why she is bearish on Facebook making a success of its own F-Commerce. But she admits that there are many ways to skin this cat.
But Dan Rose, Facebook’s vice president of partnerships and platform marketing, discussed the appeal of its social ads at an event Wednesday in Austin, Texas.
“When I raise my hand and say, I like Einstein (Bros.) bagels, and then one of my friends sees that ad, they’re going to see my name in that ad,” Rose said. Through Facebook’s partnership with the media-research firm Nielsen, “we found that when my friend’s name is in an ad, I’m over 60% more likely to remember the ad, and I’m over four times more likely to purchase the product,” said.
“This is word of mouth. This is word of mouth at scale. This is what, as marketers, we’ve always been trying to bottle up and find a way to take advantage of, and the social web is finally allowing us to do that.”
But Forrester’s Mulpuru said she found that offering promotions in exchange for people to “like” their page were ineffective because most people “liked” companies just for a discount. I have written frequently about this Pavlovian response to offers and promotions. As I wrote yesterday - this is where you not only eat your own dog food but believe that your poop doesn't stink.
Though companies theoretically show up on the news feed of their Facebook fans, the analyst said companies are unsure how frequently or prominently their posts do show up on the feeds.
“When retailers put like buttons on their product-detail pages, are they really thinking?” she said. “Your competitors can see what products are more liked than others. Are you exposing your sales information? So why would expose this information?”
Still, Mulpuru said Facebook could help some companies, such as those that sell digital media and goods, such as video-game maker Zynga. Businesses that run on “flash sale,” or limited-time sale, model are also well suited for Facebook, she said.
In my view trying to see this as a way to determine your value as a brand on Facebook using the Fan or Like assessments is like trying to gauge your success as a parent by your kid's School scores.
Start being real people!!!