Facebook’s recent introduction of a ‘buy’ button, allowing users on desktop and mobile to buy advertised products with just one click, and without leaving the social network, is yet another demonstration of social platforms looking towards monetization beyond display advertising.
The new feature, which so far has only been tested by a few small and medium-sized businesses in the US, is Facebook’s most recent innovation in the realm of frictionless commerce and will help the social network be less reliant on advertising.
It isn’t just Facebook exploring direct and affiliate revenue. Twitter has just announced the acquisition of CardSpring, a payment infrastructure, that enables retailers to connect to publishers to create online-to-offline promotions; Pinterest, meanwhile, has teamed up with Shopify, an e-commerce platform for more than 100,000 merchants, which ensures that all pins of their products include valuable information such as pricing and stock availability.
These approaches enable platforms to become more insular experiences, almost like shopping malls – allowing users to socialise with their friends, grab a coffee, find and share new content, search and purchase products, all without leaving their space. Whilst Amazon has huge capabilities in commerce and fulfillment, they lack the social dynamic – and social platforms integrating commerce means you can have a more enjoyable ‘browsing’ experience, without having to leave the space.
The rise of media convergence, driven not least by the unprecedented growth of mobile device usage, is increasingly bringing commerce and content closer together. The constant assault of new technologies, whether Facebook’s ‘buy’ button, Amazon’s FireFly or examples like PowaTag, which allows consumers to instantly purchase products via QR codes, are continuing to break down the old models of what, where and how retail is defined – e-commerce is now becoming ‘everywhere’ commerce.
The biggest threat to retailers now comes from standing still.
Not exploring and experimenting with new distribution channels will open up opportunities for new forms of competitors, enabling them to steal ‘share of time’ and even poach customers – a dangerous scenario that retailers can no longer ignore. Now is the time for retailers and brands who exist in retail spaces to work with their partners, and understand how they can use these technologies to redefine their retail experience, and redefine how media can deliver business value.
(Originally posted on Retail Week)