referral

drag2share: CHART: Pinterest Has Exploded As An E-Commerce Player, Driving Nearly One-Fourth Of Social Commerce

source: http://feedproxy.google.com/~r/businessinsider/~3/ZObRfqdNFUY/twitter-and-pinterest-in-social-commerce-2013-9

It wasn’t so long ago that Twitter was thought to be a non-starter for retail, and many suspected Pinterest might not drive enough volume, but recent data has shown that they’re both driving significant e-commerce traffic.

During the second quarter of this year, Pinterest accounted for 23% of social-generated e-commerce sales and Twitter 22%. Facebook’s share was slightly higher, at 28%.

But a year ago the space looked extremely different. Pinterest was a blip, and accounted for just 2% of social commerce. Facebook dominated with a whopping 55% of social-mediated e-commerce sales.

At BI Intelligence, Business Insider’s paid subscription service, we recently analyzed over 15 datasets culled from a variety of sources to probe the viability of social media as a commerce and retail-driver. We published our insights in a recent report, “The New Art Of Social Commerce: How Brands And Retailers Are ! Converti ng Tweets, Pins, And Likes Into Sales.”

Subscribers also gain access to over 100 in-depth reports and hundreds of charts and datasets on mobile, social, and their impact across industries, including retail.

BII social commerce sales

This data was provided by AddShoppers, which relies on tracking code embedded on thousands of retailers’ websites worldwide to determine whether sales revenue can be attributed to a referral from a social media site.

In the grand scheme of things, social still represents a small source of direct e-commerce traffic. However, we know that social does play a very important role in multi-touch attribution, as 74% of consumers rely on social networks to guide their purchases, according to Gartner.


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Wednesday, September 4th, 2013 news No Comments

Reiterating Bearish Thesis on Pinterest

Bearish Thesis on Pinterest

 

– growth was driven by PR hype (and some unscrupulous social tactics); the PR has died off (Source: Pinterst Followed 274 of My Facebook Friends and Notified Them BEFORE Telling Me)

– “Pinterest drives more traffic than Twitter” is misleading because at 1.8% of traffic, it is still an order of magnitude lower than Search (41%) or direct traffic (20%) for commerce sites (Source: The Pinterest Myth)

– Pinterest is a “feature” that others can copy or have already copied — e.g. Facebook curated “Collections” (Source: http://bit.ly/Facebook-collections )

 

– leading affiliate marketers confirm the Pinterest referral potential has been limited at best so far. Amazon researchers published study that shows Pinterest does not generate much sales (Source: http://go-digital.net/blog/2012/08/uh-oh-amazon-researchers-say-pinterest-doesnt-generate-a-lot-of-sales-amzn/ )

 

– Pinterest does not own or have ANY content — all of the content is linked to and served by other content owners, who could decide to disallow Pinterest’s further use of the content by blocking hotlinking.

 

– Pinterest’s original value (carefully curated content) has been obliterated due to the tidal wave of content that has been posted on the site — the value of curation has been lost and it is now no better than Flickr or just a Google Image search

 

– Pinterest’s top categories are “Food & Drink” and “Outdoors” which may not easily translate into online sales. Source:

 

NOTE: The point is that Pinterest may not find a real business model and revenues may never amount to much. But this does not mean that it won’t be bought by some other larger company that wants access to its user base and their activities on the site for other purposes such as ad targeting.

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Wednesday, March 13th, 2013 news No Comments

Rakuten Strategy In Pinterest Coup

Source: https://intelligence.businessinsider.com/welcome

social media traffic referrals

The announcement that Pinterest raised a lot of money at a billion-plus valuation was expected; less expected was the name of the lead investor: Rakuten, the Japanese e-commerce giant. 

This is a brilliant move for everybody involved. Here’s why:

  • Pinterest is building a monetization strategy based on driving ecommerce referrals: if you pin something you or someone else who follows you can buy it, and Pinterest gets a referral fee. From what we’ve been told, however, this still drives minimal revenue as Pinterest gets that referral income from a third party company, and because a lot of Pinterest activity is “aspirational” (you might “pin” a $20,000 wedding dress because it’s fabulous, but you’re not going to buy it). Turning Pinterest into a monetization engine would therefore require product optimizations, such as e.g. allowing brands to build stores inside Pinterest. That being said, Pinterest clearly has a lot of potential. As you can see from the chart above, from Capstone Investments’ Rory Maher, Pinterest already drives as much traffic as Twitter despite being years younger.
  • This is where Rakuten comes in. Rakuten not only has great e-commerce experience, being the biggest e-commerce company in Japan, it has experience at a very specific kind of e-commerce; what’s known as “B2B2C.” Rakuten’s website is like a “shopping mall” where thousands of small businesses set up storefronts that Rakuten manages and drives traffic to. Rakuten is not like Amazon, in that it’s not a store, but it’s also not like eBay, in that it’s not a pure marketplace. It’s something inbetween, that’s known as B2B2C, that allows businesses to sell to consumers via an intermediary. What’s more Rakuten, starved for growth in its home country, has been on an international warpath, buying leading European and American commerce startups for hundreds of millions of dollars and investing heavily in China.

In other words, Rakuten could teach Pinterest how to become this B2B2C powerhouse; how to become a fee-collecting intermediary for social commerce by figuring out how to connect shoppers and businesses and brands. This would be extremely profitable for everyone involved.

RELATED: Here’s Why Facebook Stores Aren’t Working →

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Thursday, May 17th, 2012 news No Comments

Google Still 80 Percent Of E-Commerce Referrals

Source: http://www.businessinsider.com/google-still-80-percent-of-e-commerce-referralsbut-facebook-up-92-percent-2012-2


Google is still e-commerce’s best friend, at least for the time being. Social is just beginning to change  business online, but search engines still dominate referral traffic to e-commerce sites.

Google alone accounts for over 80 percent of e-commerce traffic referrals, according to a study by RichRelevance. Meanwhile, Facebook made up 0.5 percent of traffic, but that number was up 92 percent from the year prior.

There is some anecdotal evidence that this may be changing. At yesterday’s Social Commerce Summit, Sheezan Bakali, Director of Marketing at hot flash sales startup Fab, indicated that Facebook was its third largest source of traffic after direct traffic and e-mail referrrals. Nonetheless, search still powers e-commerce—for now.

Drivers of E-Commerce Traffic

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Wednesday, February 8th, 2012 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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