Thursday, March 23, 2017

Facebook Pivots for Success

The social media giant, Facebook, has been an extremely popular sight for people to contact and keep up with family, friends, and acquaintances. They have recently been making waves with their new adaptation to a more YouTube-like focus on their website. The normal posts about the person’s day or their political opinions are now pretty much obsolete. In their place are viral videos that pull people in, until they realized they just spent the last hour of their life watching them. The recent rise in the popularity of the social media mogul has made their stock one of the hottest of the year, and they are looking to increase that even more. Their newest pivot is an ad-format campaign that will help retailer showcase their products, and increase sales. They hope the new campaign will drive them to the top of the social media food chain.
            The ad-format campaign dubbed “Collection” was created specifically for the Facebook mobile app. The philosophy behind it is that it will eventually force people to use the Facebook app as an outlet for shopping, creating a symbiotic relationship between the retailers and social media company. The monetization director for Facebook, Maz Sharafi, stated that the goal is “to really build a great new shopping experience for people and to help marketers really drive discovery and sales in mobile”. In this day and age when everyone has their cell phone on them at all times, mobile shopping is a sector that retailers can hope will grow exponentially over the next four years.
The collections are designed so that Facebook does all the heavy lifting, choosing which products are showcased from the retailer’s catalog. The ad for the retailer shows up on a person’s Facebook feed, along with four different products. If the ad is clicked on, another Facebook page pops up with up to 50 different products. From here the person must click on the link for the retailer’s website to actually purchase the product, but I think that this protocol for purchasing the products will change. The next step for Facebook, in my opinion, is to work out an agreement where the products can actually be purchased on the Facebook page. This will increase convenience and hopefully increase sales for the retailer and help Facebook grow profit with commissions from sales. This will also create a completely new league of social media websites. They will no longer be places for people to interact with other people, now other companies can interact with these people. There are security issues in the form of hacks that can take people's credit card info after they make a sale, but I believe that Facebook programmers will be able to heighten security even further to accommodate their new sales campaign. It may come to a point where even wholesalers, like amazon, allow people to purchase products from them through the Facebook site. The trend of websites popping up like weeds might make way for consolidation between websites. 

https://techcrunch.com/2017/03/23/facebook-collections-2/

1 comment:

Caroline Coulter said...

This new use of Facebook's video feature is smart marketing! The addition of videos onto Facebook is a feature that I, as a Facebook user, have noticed keeps me on the app longer than before. With viral videos becoming a huge part of the internet, the autoplay videos are a good way to make Facebook a strong competitor with websites like YouTube, as you said. Including e-commerce into the video feature on Facebook is a good way to increase Facebook's bottom line as they can deliver ads directly to consumers. Does Facebook use data mining to find the ads most appropriate to each user? This use of technology could help deliver the most appropriate products to the consumers, while being a great source of marketing for companies. Often times I have seen videos and banner ads on Facebook that use my recent searches to show me the new products they want to get out to the general public. With the Internet's tendency to make things go "viral" and Facebook's convenient "share" button, the combination seems like a no-brainer for companies. This innovation has brought Facebook back into relevancy, as is much needed in ever-expanding markets like social media.