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The Collapse of Social Commerce

Check out Volusin's SXSWi presentation to learn about the fall of social commerce from an organic standpoint, as well as find out in-depth tips and suggestions to salvage what’s left of the social commerce empire.

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The Collapse of Social Commerce

  1. 1. v The Collapse of Social Commerce Matt Winn • Senior Brand Manager • Volusion Zach Welch • VP of Client Services • BrandGlue
  2. 2. What we’ll be covering EdgeRank Ø  Facebook’s Algorithm and how it works   The State of the Union Ø  Where we’ve been, where we’re at, and where we’re going   Remaining Successful in Social Ø  Best practices, tips and tricks   Remaining Successful in Ecommerce Ø  Best practices, tips and tricks
  3. 3. The algorithm   Commonly referred to as EdgeRank by marketers   Algorithm is based on three main components: 1.  Affinity 2.  Weight 3.  Time Decay   Keep in mind there are many other variables involved
  4. 4. News Feed Optimization (NFO)   Essentially SEO of News Feed   The practice of reverse engineering the data to optimize content visibility based on the algorithm   In 2011 the average page on Facebook reached about 7.5% of their fans   With implementing best practices and keeping an eye on data, you could double, triple, and in rare cases, quadruple that percentage
  5. 5. 5 The heyday of NFO There was a time when…   When we began working with Jackson Kayak, they were reaching 9% of their followers   In just 6 months they were reaching nearly 40% of their fans (No Ad Spend)   Relied heavily on imagery in each post   Used engagement tactics to maximize affinity scores   Example, ‘Thumbs up if’ or ‘Fill in the blank’ or ‘Choose one of the following options.’   Ran sweepstakes every quarter compound engagement
  6. 6. Case StudyState of the union   Organic reach on Facebook drops to new lows, 1-3%   Why current changes have occurred:   Facebook IPO   Decrease in quality content   Growing competitiveness in the Newsfeed   Organic social strategies are an uphill battle for everyone   Is social a viable channel anymore?   More importantly, can social still drive sales?
  7. 7. Case StudyCan You Still Be Successful on Facebook?   Is organic reach dead?   Obtaining big jumps in organic isn’t as easy as it was before   Challenges exist now more than ever. Is the pain worth the gain?   In most cases yes – but you need to make sure you understand the barriers   You must set goals and reasonable expectations
  8. 8. Newsfeed optimization best practices Think about all three components of the algorithm when posting Affinity Be personable and relatable Don’t force it. Be creative if you use a CTA When posing a question – put it at the end of your update Reduce friction when writing content Be a knowledgeable thought leader in your space Know how to read the negative data Weight What kind of engagement are you trying to get? Remember that each form of media has a different weight These weights can change quickly Currently video is getting substantially more weight than other content types (must be native) Link previews now perform better than native images Time decay Posting too much can hurt you Post can cannibalize each other so make sure you are giving enough space Frequency issues will show in your negative feedback How much is too much?
  9. 9. Case StudyYou can separate yourself with great content   Content is king and your success relies on it   Bummed about reach? Might be time for some soul searching   The algorithm knows how to sort out bad content   While your reach may have gone down, if you have good content, it’s likely the quality has gone up   Overly promotional content typically performs poorly (80/20 Rule)   So how can you improve your content game?
  10. 10. Case Study Seize opportunities and think outside the box
  11. 11. Case StudyBe willing to take a different approach on social – branding is evolving
  12. 12. Case study: Facebook Ads This client has goals clearly defined Notice the amount of engagement vs. clicks They capture every user that hits there page and then retarget them through a pixel Their front end budget is only a few hundred dollars a month Lower CPA on Facebook than any other channel Facebook Advertising 3 ways to run ads. Boosting Posts, The Ads manager and the Power Editor NFO and the algorithm play a key role in how much you pay for your Don’t try to predetermine if a post will perform well
  13. 13. 13 How to remain successful in ecommerce   Leverage channels like Pinterest to showcase your products and drive direct traffic to your product pages   Try offering flash sales and exclusive social media discounts, both from a traditional advertising perspective and by boosting your posts on Facebook   Combine your email and social efforts to maximize impact and build engagement for both channels
  14. 14. 14 Key takeaways:   Challenges exist, especially with organic content   The social landscape is constantly changing   Success stems from high-quality, engaging content   Set aside a budget for Facebook Advertising and use it effectively   The future of ecommerce on social is complex, blending channels is advised