The Social Commerce Dream

Social Commerce is the dream of impulse buying on digital media come real. Careless, flawless, and not least frictionless shopping on mobile, tablet, surface and yet-to-be-invented digital interaction devices with augmented reality. You may agree that we are still a bit far from it in 2021, or perhaps you are one of the pioneering consumers trying out every new way of shopping available.

With social media, brands can interact directly with consumers. So, marketing has become interactive, the customer voice has become audible, and social commerce could have the power to make shopping great again.

What is social commerce?

The concept of Social Commerce was coined by Yahoo back in 2005. It represents the activation of a purchase behaviour triggered by social media interactions. But Yahoo couldn’t make it work, and more than 16 years later, it is still looking for its final form. Ecommerce first emerged out of dusty distance-buying post-order catalogues. Its first embodiment on the internet was text-rich, image-poor and devote of any emotional dimension. In a parallel trend of comparison shopping, rational buying became the default for internet shopping and deals-sites were the most fun places around.

In recent years, the internet has become more commercial, and by projection both more fun and more superficial. Social media helped make a shift away from human-to-machine relations and back to human-to-human relations. At least we got that far. Emojis conquered text messages crying out loud, that “emotions are back”. 📢❤💥

Perhaps these are indications that full-scale social commerce is actually possible despite its long journey in the dark.

What features will make social commerce successful?

The features of social commerce allow for a wholesome social experience within in a full ecommerce journey. We propose to define its components as the following list of commerce-enabling elements:

• A product catalogue (also called a product feed)
• A product selection and check-out feature
• Peer-to-peer (social) communications related to products and services
• Influencer integration
• Live video
• Behaviour-based ad targeting
• Shopping enablement in rich media (such as product tagging in images or video)
• Reviews, ratings
• Recommendations
• Fulfillment
• Client services

Social commerce today emerges from two different horizons: On the one hand, you have the social media-enabled ecommerce into which Amazon falls. And on the other hand, you have the ecommerce-enabled social media such as Instagram and the Facebook Shop. Let’s have a look at these species in more detail.

Social-media enabled ecommerce

Most ecommerce platforms integrate a number of the elements we mentioned, but Amazon is the most advanced social media-enabled ecommerce model with reviews and ratings, peer recommendations and “people also bought” as driving elements. We can also put Etsy, Vinted and Shein in that category. To take the example of Amazon, it is pushing further into social media and hoisting itself up the funnel with things like the following:

• Amazon posts: social posts on “brand stores” and now coming to product detail pages
• Influencer integrations: activating the ecommerce dimension of influencer partnerships by allowing them to build a store front directly on Amazon with products from their partners
• Live commerce: live video product presentations of products on Amazon Live. Around the clock Shoppingtainment.

Where Amazon is still very much at the end of the purchase journey for most users, it is trying to build a more entertaining user journey opening up for upsells and impulse buys. It’s social gaming platform Twitch may come to play an important role in the set-up moving forward. The strongest element in Amazon’s social commerce play is clearly the Live commerce initiative. It feels like the return of TV Shopping and merchants are flocking to the opportunity to present their products in a live stream on the platform. Build more awareness, give their products a more humane touch, show the founders, reach new audiences, nudge users further towards the purchase. Real humans, real emotions, real persuasion.

Ecommerce-enabled social media

On the other extreme of the spectrum, Pinterest and Instagram have long been considered the most advanced social commerce players. With slowing user growth, it has become essential to monetize their audiences more strongly in order to survive, and ecommerce seems like a much more powerful economic model than advertising.

Instagram has the power to recommend fashion items that make people buy. At least that is the case for Andreas Reiffen, founder of Crealytics and heavy internet users. Where traditional commerce was always based on the location, location, location paradigm whereby the location of a business and its flow of traffic was determining for its’ success, the success parameter for social commerce could be closer related to the quality of the recommendation.

Instagram’s Mothership, Facebook has picked up the challenge in a serious manner with Facebook Shops, a new commerce-oriented solution after their Places and Marketplace. One of the strongest motivators for advertising spend being ecommerce, it is crucial for Facebook to make the connection, especially in a world where cross-platform data integration becomes increasingly difficult (read more about the battle of the cookies here). The impact of advertising higher up the funnel is becoming more difficult to measure and prove.

The most significant step for Facebook Shops is the integration of a payment solution which is already operational in the US market. This will allow for an end-to-end shopping experience from discovery to purchase without leaving the platform. It also opens up for an interesting opportunity: A Facebook Shop with Amazon fulfillment at the back end (combining a Facebook Shop with payment and an Amazon Multi-Channel Fulfillment solution). Ecommerce without a webshop, who would have expected that?

And let’s not forget Snapchat and TikTok. TikTok is building out its advertising offering and is already integrating shopping functionality into the mix. TikTok Shopping, however, is mainly an integration with Shopify enabling for a simple pass-through from the social media to the shop. It looks like social commerce-enablement is becoming a mainstream feature for all platforms. Snapchat has long been integrating its offering with ecommerce solutions and has a similar force of persuasion to TikTok among its users. Snapchats social commerce case studies are an interesting read. Its main tool for ecommerce enablement is a deeplinking feature for linking ads to shops. For younger audiences, these platforms have an enormous persuasion power, but the ecommerce-enablement still requires jumping to another channel.

Ecommerce everywhere

Over at Google, there is pondering as well. Already three years ago, Google went on a mission to provide “shopping everywhere”. I called it an Ozone-approach to shopping (ozone is a variety of oxygen present everywhere around us in the air and with the interesting characteristic that too high doses can be lethal to human beings).

The ozone initiative aimed to provide ecommerce activation in all of Google’s media channels. In search marketing it is already present via Google Shopping and product ads which appear in an integrated manner into search results. But Google is pushing this further with a purchase button and an integration with Google Pay. I call it the Google Buy button although it appears to have a less Amazon-like name in Google documentation.

It is also working on an integration of a purchase function inside videos on YouTube and in images. The approach is similar to the tags Instagram has enabled in its images to link to a product page, but it is reasonable to assume that Google might push this further via image recognition and propose purchases of practically anything you see.

There is an app for it

But what if it all ended up in an app instead. With the open internet being closed up and user journeys more restricted, the place to be is in an app. The superapp phenomenon is expanding beyond China, where WeChat has always been the app to offer everything: Uber, Paypal, Spotify, Messenger, eh I mean WeChat transport, WeChat payment, WeChat Music, WeChat just chat etc.

Superapps are social media by definition and some are natively ecommerce enabled. Perhaps social commerce is already here.

Social Commerce Champions

Taking a first look at the various contenders to the title of social commerce champion and giving them a first rough rating on the features listed at the beginning of the article, the top contenders seem to be Amazon, Instagram (Facebook) and Google. The triopoly of digital advertising are seriously addressing this.

Rough rating of the main emerging platforms for social commerce. Please disagree and contact the author for improvement 🙂

Get social proof, inspire and reach your audience via ads or influencers

Instagram and the Facebook Shop seem like interesting places to go in 2021. For ecommerce players strongly anchored in Amazon, there is social turn to take and a live commerce opportunity to seize where available (US so far). The key will be to understand end users better and engage them with content earlier in the user journey. For brands with little ecommerce penetration, it will be about learning how to drive users to the sale and to take the purchase and fulfilment experience into consideration. An impulse-buy with a 7 day deliver span may not be a viable solution for social commerce. Social commerce is fast, fluid, frictionless and fulfilling.

And in the future, augmented reality may allow for immersive experiences merging the online and offline user experience and creating an entertaining and fulfilling user experience. Facebook heading for the Metaverse and Snapchat activating Augmented Reality in its campaigns, may be signs of an emerging social commerce paradigm.

Liverpool is home to wonderful Beatles statues, to the Ferry cross the Mersey, to seagulls and Liver birds.

Liverpool was also host the the European Search Conference 2018 earlier this week. A one-day conference with a great line-up I was happy to be part of.

Chaired by Jim Banks, the one-day conference had several good friends speaking: Aleyda Solis, Lukasz Zelezny, Pierre Far and Dawn Anderson and then some new friends Zbigniew Nowicki from Bluerank, Matt Vignieri from Kenshoo, Vicke Cheung from Distilled.  I can not do everyone justice in this post. Rob Weatherhead, Michelle Wilding, Dewi Nawasari.

A Jim Banks quote is in place:

“It feels like they have picked all the speakers with names that are impossible to pronounce”.

Aleyda as always impressive with solid advice on web migration, Pierre Far going deep into GDPR and providing a tracking solution, Blockmetry, that supports it, Dawn Anderson showing us where Voice search is going.

Automation

Lukasz Zelezny did a great little presentation on Social Media: “things you can do tonight”. Hey Lukasz, I know you are tracking mentions, so I am sure you will find this post 😉 I love your tools and tricks on Automation, Social Media and brand monitoring. I too have fallen in love with IFTTT (although I later adopted Zapier) and with Sotrender for Social media monitoring.

I really enjoyed the fact that Lukasz was talking so much about Automation because it was one of the major trends I was going to address later on in my own presentation.

Machine Learning and AI

Zbigniew Nowicki from Bluerank presented a case study for their client Rainbow. I didn’t know Zbigniew before the conference but I knew his company Bluerank very well as they were a double winner at this year’s European Search Awards and also one of the companies I referenced in my own presentation. The case study was about the user journey and attribution in the Travel sector where bluerank have applied a machine learning approach to finding the most important step in the user journey. Fascinating research. Machine learning and AI is a major trend in digital marketing and it was great seeing this addressed from someone else than the big masters of AI, the Gafa, Microsoft and IBM who are traditionally dominant in the field.

 The importance of Research

Vicke Cheung from Distilled, presented the 10 Commandments for the Creative process and what I really liked about her presentation was the emphasis she laid on the Research process. There was a nice quote from Ogilvy about how Research can be boring but that it is extremely important. I found another one which I hadn’t heard before:

Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals.

David Ogilvy

I was so into the research phase that I didn’t take down her 10 commandments on paper but I clearly remember the most important message about Ideation: “ideas come from dialogue”, confront them, present them, challenge them.

Of course, agencies doing more research for digital marketing is one of the major trends from my own presentation, which I why I find it so important to stress…

Understanding the User journey

Matt Vignieri from Kenshoo told us a story of his own user journey in the last online purchase he made. He clearly illustrated how you are using different moments, different channels and how you state of mind is different from one step to the next in that journey towards a purchase or a conversion.

Kenshoo is a technology provider that allows you to track user exposure and engagement at various stages of the user journey and I was really happy he emphasized this as he was precisely on one of the major trends as well.

What are the best digital marketers doing that maybe you are not?

My own presentation was named Major trends in Paid Search and was based on research I have done into the best “PPC” entries in this years European Search Awards. In the presentation linked to on slideshare, I am providing a good view of just that.

However, the parts of the presentation I have not put on Slideshare were asking a slightly different question. What are the most advanced digital marketers doing? Well, you have some of the answers in the titles used in this post and some of them in the presentation. From the 24 PPC case studies I analyzed, the pattern that I could see was one of digital marketers constantly adapting to change, research for insights, trying to understand the user journey, trying new things, testing, raising the bar on what they already master by introducing processes, automation and machine learning. For the full story, come to my next conference but for a nice take on it, here is a tweet I liked from AgencyPedro summing it up:

My presentation can be found on slideshare here:

The European Search Conference 2018 was a great experience and I was really happy to get the opportunity to speak there and to discover the  great city of Liverpool.

If you like the content, please follow me on twitter for updates @soanders. It is likely that I push further on this research and publish more insights in the future and I will use Twitter to announce and share.

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To do a little more justice, please find below 3 other presentations on Slideshare:

The SEO guide for successful web migrations by Aleyda Solis: https://www.slideshare.net/aleydasolis/the-seo-guide-for-successful-web-migrations-eusearchcon

10 Commandments to demystifying the creative process by Vicke: https://www.slideshare.net/VickeCheung/the-10-commandments-to-demystifying-the-creative-process-103496955

Voice search and conversation – Challenges and opportunities by Dawn Anderson: https://www.slideshare.net/DawnFitton/voice-search-and-conversation-action-assistive-systems-challenges-opportunities

Web analytics and EU regulations by Pierre Far:
https://www.slideshare.net/PierreFar1/european-search-conference-liverpool-2018

Major Trends in Paid Search by Anders Hjorth: https://www.slideshare.net/secret/KnlwWEmoEkyvdI

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Write-up from Kanuka Digital: https://www.kanukadigital.com/2018/07/european-search-conference/

The main topics were of course Privacy and GDPR on one hand and then Automation and Artificial Intelligence on the other. In the conference programme, various topics touched on AI: Automation for PPC and Voice Search being the most prominent ones. But GDPR was discussed in every break, over every drink and in most of the questions asked during the individual sessions.

The conference addressed some really interesting questions this year:

• Should you use Ranking factor studies to guide the way you do SEO or simply use for inspiration?
• What are your options when organic reach in Facebook and other social media is dropping?
• Is AMP for mobile rendering or or just a temporary patch to a problem of speed?
• Should we be worried as marketers with the arrival of AI in the optimization interfaces?

Overall, there was a lot of discussion of Speed. Speed as a ranking factor – not time to first byte but time to full page render as Marcela de Vivo from Semrush stressed. There were session on AMP which are in essence a way to speed up pages.

At the beginning of the year, my prediction was that AI would be big but that it would be more of a hype effect than a reality for the Digital Marketer this year. Well, it looks like AI is more prominent than that. Frederick Valleys from Optymzr reminded us that the Quality score was the first Machine learning functionality in Adwords and has been around since the beginning of Paid Search. And we have seen new ML driven functionalities enter the scene little by little. The Smart bidding options (Target PPC, Target ROAS, Maximize Clicks and Maximise conversions) are all part of this, as Brad Geddes reminded us. And in a separate session, Ann Stanley showed an example of smart bidding for shopping campaigns involving remarketing: Optimize by Goals which you can find here.

What we won’t see is perhaps the shift from Machine Learning (ML) into Artificial Intelligence (AI) for these functionalities.

Voice search is another area where Artificial Intelligence has a big role to play. It was covered in the keynote by Beshad Bezhadi but also at a more concete level in a very popular session by Pete Campbell:

As is often the case, I met some wonderful people in the networking around the event – and also had some of the more interesting discussions off the record.

• Changes in the Google algorithm favouring niche approaches
• The need to constantly renew ourselves in this industry of constant change
• The need of business in other industries to learn from our experience as they will soon be facing the same challenges of constant change that we have for 20 years due to major technological, organisation and behavioural disruption across all business sectors.

Soon it will be time for SMX Paris – the programme is very different and there is no real speaker overlap so it will be another exciting conference on Search, Social, Analytics and Digital marketing overall.

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