social shopping ePaper

1. image by Panoramas
connected
consumption trends in social computing and
eCommerce
an ePaper by sidneyeve matrix

2. .2.
60%
retailers have
Although it's been around for years,
the social shopping trend peaked
during the December 2009 holiday
virtual storefronts season. More retailers and consumers
on Facebook 2
are online than ever before.
according to the Internet
Retailer Top 500 Guide 1
image by kayla casey

3. ..
47%
3
A report by Shop.org indicated that almost
half of brick and mortar retailers were
planning to increase their investments in
traditional retailers
online social media campaigns for the 2009
holiday buying binge. 3 increased SMM
for holiday 2009
That growth is, according to Reuters, due to
the fact that advertisers perceive social media
marketing channels have matured
considerably since 2008, becoming an
important piece of a cross‐platform puzzle.
According to the Harvard Business Review
connected consumerism4
is one of the key economic trends for 2010.
Likewise, the annual FEED Report from
Razorfish announced the mainstreaming of
social commerce
5
occurred in mid‐2009.
image: Thomas Hawk

4. Privacy concerns aside, people are
.4.
embracing the opportunity to
narrowcast our retail transactions and Social media marketing encourages
publicize our consumer preferences to
friends, fans and followers.
bonding over brands
and bargains
As a result, social shopping is taking in a networked culture.
brand affiliation and ambassadorship
to a whole new level.
image by hfabulous

5. image by Always Be Cool
According to author Mitch
Joel, the power of social
shopping is "the ability to
connect directly with the
brand and build friendships
with individuals who have like‐
6
minded interests."
Thus, the social glue of
consumer communities is
loyalty to a set of shared
values and/or similar lifestyle
choice represented by our
preferred brands.
It is no surprise then, that opt‐
in social shopping rituals are
emerging as the next
mechanism for elevating
companies and brands to
(what Saatchi & Saatchi call)
Lovemark status.7
.5.

6. image by freefotouk
The stage was set for the popularization of connected consumption as web users
became accustomed to the presence of recommendation engines on eCommerce
8
sites, and the increasing number of brands on social networks like Facebook.
Whereas few people admit to trusting advertising messages, most of us (70%
according to Nielsen) will admit we use social comparison models, peer
.6.
9
recommendations, and friend referrals when making purchase decisions.

7. image: Яick Harris
Trends in online social shopping
help consumers who are plagued
by indecision and often abandon
their electronic shopping carts in
frustration, observes Natalie
Zmuda at Advertising Age. 10
Researchers at McMaster's
University in Canada demonstrated
that part of the problem with
traditional (nonsocial) online
shopping is that,
"ecommerce typically lacks human warmth
and sociability, since it is more impersonal,
anonymous and automated than traditional
face‐to‐face commerce." 11
But adding just a bit of social interaction and peer‐to‐peer advice, via a live chat client
or message boards, can make the difference at the moment of impasse between a
completed purchase and the shopper bouncing to another, more info‐rich site.
.7.

8. As researchers at the MIT Media
Lab have pointed out, the
emergence of these digital,
interest‐driven shopping
networks is contributing to
consumers becoming more
information‐
aware.12
image by ratterrell
This in turn drives:
• comparison shopping trends
• increased participation in
loyalty programs, and
• creation of valuable (and
influential) user generated
content.
All of which is sure to please
eCommerce retailers and social
media marketers.
image by ratterrell
.8.

9. .9.
A collection of new social
shopping apps for smartphone
users promises to simplify the
process of sharing purchase
history with family and friends as
social shopping
goes mobile.
The iPhone and 3rd party app
development is another
foundational element supporting
structures of connected
consumption.
iPhone is the platform for mobile
social shopping campaigns, since
research shows users of this
smartphone brand have the
highest click‐thru rate for animated
13
mobile ads.
image by Sami Keinanen

10. .10.
Although it's not news that we construct and communicate our identities through
consumer habits, it's likely we've never done so quite so publicly prior to the mass
adoption of smartphones.
On their handhelds mobile shoppers, theatregoers, diners, and cafe crawlers are
laying down a set of digital footprints through the malls, shops, and
marketplaces‐‐‐a trail of P2P referrals for friends to follow.
No small wonder that articles about the advertising potential of geo‐loco socnet
14
apps like Foursquare are popping up all over the web.
image by Andy Wilson

11. Resources Cited
1. http://www.directnews.co.uk/news/online‐
marketing/social‐networking/over‐50‐of‐top‐e‐
retailers‐have‐facebook‐presence‐
$1337549.htm
2. http://cm.media.mit.edu/publications/
connected‐consumption‐hidden‐networks‐
consumption
3. http://www.utalkmarketing.com/pages/
Article.aspx?
ArticleID=15864&Title=Retailers_rely_on_socia
l_media_advertising_for_Christmas
4. The Harvard Business Review social trend
report is cited in http://
socialcommercetoday.com/harvard‐business‐
on‐6‐social‐media‐trends‐for‐2010/
5. Razorfish annual FEED report: http://
feed.razorfish.com/feed09/digital‐primacy/
6. Mitch Joel on social shopping: http://
www.twistimage.com/blog/archives/social‐
shopping‐takes‐hold‐as‐the‐next‐hot‐online‐
social‐network/
7.Saatchi & Saatchi on brand love: http://
www.lovemarks.com/
image by AlinaKulesh

12. 7.Saatchi & Saatchi on brand love: http://
www.lovemarks.com/
8. Brands on Facebook: http://
www.insidefacebook.com/2009/02/16/
facebook‐to‐launch‐redesigned‐pages‐for‐
businesses‐tour‐first‐impressions/
9. Nielsen on consumer trust in adverts: http://
blog.nielsen.com/nielsenwire/consumer/
global‐advertising‐consumers‐trust‐real‐
friends‐and‐virtual‐strangers‐the‐most/
10. Interview with Nancy Zmuda from
Advertising Age: http://
www.crainsdetroit.com/article/20090413/
EMAIL01/904139962#
11. Researchers from Ontario’s McMaster
University: http://is.gd/91b7r
12. http://pubs.media.mit.edu/pubs/papers/
main.pdf
13. http://mashable.com/2009/05/06/iphone‐
shopping‐savings/
14. iPhone users click on mobile adverts: http://
www.bizreport.com/2009/10/
study_cpg_auto_scoring_well_in_mobile.ht
ml
15. Geoloco adverts: http://
www.mediastyle.ca/2010/01/mobile‐tech‐
opportunity‐in‐foursquare/
image by Armano Maynez

13. image by CWMc
about the author
Sidneyeve Matrix, PhD.
Queen's National Scholar, Film & Media, Queen's University, Canada.
Blogger, Speaker, Professor teaching digital culture, mass
communication & marketing, pop culture, television, & film courses.
Website: sidneyevematrix.com
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