Facebook’s New Google Killer
According to Advertising Age Facebook is expected to unveil a new social retailing feature today (November 6th). The feature will allow Facebook members to share with people in their network what they bought, where they bought and also information on the product like a discount or coupon. What a Google killer this could be. A recent emarketer study showed that 37% of people in the U.S. use a search engine to find where to buy a product online. Now all they have to do is ask their friend on Facebook!
A Deloitte study found that 62% of Internet users read product reviews written by other consumers and more than eight in 10 respondents who read consumer reviews said that the reviews had affected their buying intentions: either they became more determined to buy the product or they changed their minds and bought a different product altogether. Those are some huge numbers. The fact that 80% of consumers say that their buying decisions are impacted by product reviews has to be upsetting to some traditional marketers.
“This is a smart move for Facebook because the true revenue opportunity for social networks isn’t straight ad serving or interruptive marketing, but rather embedding ‘virality’ into members’ natural purchase behaviors,” said Dave Balter, CEO of BuzzAgent, in an e-mail. “This capability may present a glimpse into the long-term value of social networks in general.”
Facebook’s social retailing plans will allow data about Facebooker users to share their online transactions and product reviews/opinions to be shared within their social network. Marketers will also be able to plug in to the program, enabling consumer interactions such as purchases to become part of the social network.
Facebook’s plan sounds like a closed loop marketing program that takes search (Google) right out of the equation. Instead of searching online for products and product reviews you will be able to go to Facebook, see what your friends are buying, ask questions directly to the marketer and make a purchase. This is taking social networks to the next level. Call it social networks 3.0
Filed under Brand Marketing, Social Media Marketing, Social Media Optimization, Social Retailing : Comments (2) : Nov 6th, 2007
November 6th, 2007 at 8:29 am
[...] - Social Media Optimization wrote an interesting post today on Facebookâ??s New Google KillerHere’s a quick excerptFacebook’s New Google Killer According to Advertising Age Facebook is expected to unveil a new social retailing feature today (November 6th). The feature will allow Facebook members to share with people in their network what they bought, where they bought and also information on the product like a discount or coupon. What a Google killer this could be. A recent emarketer study showed that 37% of people in the U.S. use a search engine to find where to buy a product online. Now all they have to [...]
November 8th, 2007 at 11:51 pm
I don’t think Facebook will kill Google. Yes they will ask their friend about products they want in Facebook. After that, they will search the lowest price in Google.