Using the Mobile Revolution for Marketing

We’re reaching that point in the world where technology has evolved to a micro-level. Computers that used to be the size of large walls are now as sleek and light as a stack of papers, and what was once a brick-sized mobile phone has become the size of a small child’s palm. By now, computers are practically mobile phones.

US teens mobile usage. Source: Nielsen

US teens mobile usage. Source: Nielsen

More people in America use and own mobile phones than toothbrushes. Fifty-four percent of these phones are smartphones, and by 2017, there will be over 10 billion mobile devices. As mobile traffic rises, so too does the need for mobile apps. With 90% of Tweets and 40% of Google searches coming from mobile phones, the way to get and spread day is becoming handheld. While two years ago most of this traffic was coming from teens with cell phones (teens increased mobile consumption in 2012 by 256%, with the standard teen sending an average of 3339 texts per month), mobile usage has extended far beyond teens. Most recently, with the continual creation of mobile apps reaching out to various targeted consumers, many companies have begun a new form of marketing for the mobile online shopper.

In fact, four out of five consumers use their smartphones to shop, and the majority claim that shopping from their phones is more enjoyable than shopping in person. No more long lines, parking tickets, unnecessary purchases, or exhausting traffic jams – consumers can buy what they want, when they want, how they want. And it gets shipped straight to their homes. 56% of consumers use their smartphones to search for a store’s location and directions, 51% to look up product information, 59% to do price comparisons on products, 45% to write up product reviews, and 41% to search for coupons. Smartphones make shopping easy and reliable, even more so than shopping in person. With many stores creating apps or green “Buy Now” buttons, shopping no longer requires physical salesmen.

Not only do mobile apps make shopping easy, but it also allows for information about products to be spread more reliably. 78 – 84% of consumers rely on social networks when researching new products. By 2015, it’s predicted that the amount of goods and services consumers purchase through their mobile phones will total roughly $119 billion. Mobile coupon usage is expected to rise to 53.2 million, and retailers say that 67% see a greater value in having their customers use mobile apps to shop rather than shopping in person. Overall, mobile apps bring five times more engagement – both in the product being sold and in the dialogue between targeted consumers.

Ivan Serrano is a web journalist and infographic extraordinaire from Northwest California. He particularly likes to write about the technology world, social media and global business. 

The Newspaper eShops – 4 Types of Online Stores for Online Publishers

For a very long time publishers have been struggling to face a new, harsh reality: their business models becoming obsolete. As traditional customers were switching to the internet, publishers found themselves in a very tough spot. Their product, the information – became a commodity. Anyone with an internet connection and a blog became a potential competitor. News and content became freeware. It wasn’t quality content but people were reading it. For free.

Publishers lost ad and subscription revenue

Soon advertising money started to flow another way. More and more ad revenue got directed to internet companies by media buyers and marketing VP’s. Subscriptions kept dropping. People were now subscribing to these new thingies – RSS feeds and email newsletters and a bunch of other stuff. But they were all free.

Some publishers moved with the trend. Although a little late to the party, they moved online. They’ve opened web outlets and although it was a harsh decision – most had to give away content. They’ve tried to charge readers for reading the content they would otherwise find free. It was a failure.

Then came the freemium model and some had a bit of success with it. These were mostly financial-related publishers that addressed a information-hungry public ready to pay for quality content. The Wall Street Journal, Financial Times, Bloomberg built sustainable not-for-free online business. Others had to find new ways to get paid.

Classifieds and job boards helped online publishers diversify revenue streams

The classified ad model and the job board came first. The solution was right there for anyone willing to see it. The classifieds were a model that worked great online, combining the need for C2C advertising and micro-payments. Jobs – everyone looks for one at some point. So why not charge people to post their openings. And guess who could target those willing to pay for these models. That’s right. The publishers.

Large newspapers and magazines alike were popular. By going online their readership increased. Using classifieds software they used the otherwise unprofitable traffic to increase revenue streams. It worked great. In 2013 UK publishers registered almost 30% increase in revenue with recruitment and classifieds.

A new revenue model for publishers – the online store

But there was still room. The publishing industry noticed that a lot of those ads shown to their readers were ran by online retailers. With online retail you didn’t have to have the whole retail logistics to be able to sell stuff. You needed media and a partner to provide the right services.

As publishers saw their revenue switching hands, they too got ready to switch to new models. Below you’ll find a list of 4 models that now help publishers to sell merchandise to their customers. Some more than others.

1. The brand-endorsed, curated store

atlantic

The Atlantic decided to try selling merchandise online but was unwilling to build a whole logistics chain to handle sales, customer support and fulfillment. They did partner with Zazzle, a platform allowing on demand ecommerce fulfillment. The Atlantic forwards the traffic and endorses the store. Zazzle provides merchandise sourcing and fulfilment.

Among the products available on the store you’ll find clothing items, cards and postage, office products and even electronics.

2. The “Post a Logo on it and Sell it” store

cnn

CNN decided to go “big” with this whole ecommerce thing everyone’s talking about. Although it’s clear they’ve put a lot of effort in manufacturing a lot of stuff with the CNN logo on it – it really doesn’t feel right. Maybe it’s the 90’s web design or the CNN Store 9 to 6 open hours for the *online* store. These things really don’t cut it.

While it might not seem like a lot right now I bet the store was the bomb when people used to access it via dial-up.

new-york-post

While the New York Post seems to try harder than CNN, it’s still not proper. Although I am sure people just love to walk around in a $24 “New York Post” T-shirt , I doubt this is the right formula.

The merchandise listing is targeted at really die-hard fans of the New York Post… which I figure is not much of a market.

3. The Online Store Built for the Audience

cracked

Cracked.com is one of the most popular humor websites in the world and provider of fun to american readers for over 50 years. Their store is built around the audience. It features witty copy t-shirts that appeal to readers.

The store is clearly a very important revenue driver (at least is expected to become) for cracked.com as the publisher promotes it heavily.

newyorker

The New Yorker knows what readers love about it. It is The New Yorker’s style, elegance and wittiness that make it so successful. The store features products that people would love, just like they love the brand: elegant diaries, printed comics, beautiful covers and … well … umbrellas (?!).

vanity

Just like The New Yorker, Vanity Fair is a part of Conde Nast media holding. Its store is packed with beautiful premium photographic prints, illustrations and covers, items fans would love to own.

4. The Multichannel All – Rounder

national

 

The National Geographic is in a league of its own. Not only has the brand built a strong online store but it also features its own collections, it sells merchandise that appeal to children as well as adults. Its gifts are wonderfully presented and really in tune with the brand identity.

Moreover NG  runs a network of retail brick and mortar stores in the UK and US. As a multichannel retailer The National Geographic shows it can build a great retail experience, as well as provide the world with astonishing information on wildlife.

And that’s not all. Customer purchases enable The National Geographic to walk on a noble path. Its mission – to inspire people to care about our planet. It does that by helping cultural preservation, exploration and research and others you can find out about here.

Talk about a great selling proposition – buy stuff and save the planet. The National Geographic shows you can be a great information outlet AND build a great business model. It also shows the online store is a viable option for publishers trying to improve their revenue streams. If they try a little harder.

 

Top 5 Ticket Sales and Event Management Companies. Have a look behind the curtains.

top5ticket_thmbLong gone are the days people would wait in line to buy tickets. Conferences, plays, movies, sports events – they all have one thing in common – the business model implies selling tickets and organising the event. With innovative solutions event managers and venue owners can now leverage the power of cloud solutions, CRMs, mobile apps and a bunch of other buzzwords.

In this post you’ll get a look at the champion and the challengers. The market is split between marketplaces (such as StubHub), ticket retailers (some of which are rather large – see Ticketmaster) and solutions providers, such as Xing Events.

SEE ALSO: Ticket Sales Business Models – The Retailer, The Marketplace, The “Enabler” Platform »

Let’s start with number 5 and count down to the king of the hill:

5. Cvent

cventCvent was founded in 1999 and since then it grew into a multinational company. Cvent is now present in more than 100 countries. It employs than 1400 people worldwide, and it just had its IPO in 2013. Hooray!

It’s mission is “to transform the events and meetings industry”. To do that it lists more than 200 000 hotels and venues all around the world.

As for its IPO – Cvent is doing damn well on the market. Unlike some other companies (cough.. cough… Facebook) they’ve had a steady growth right from the beginning. After listing their common stock at a price of $21.00 per share in august 2013 they had spectacular growth and they are now at $36.00 per share.

Cvent acquired SeedLabs (now CrowdTouch) in 2012

Cvent acquired SeedLabs (now CrowdTouch) in 2012

The company was cofounded by Reggie Aggarwal (CEO), Chuck Goorah (Sales and Marketing), David Quatrone (CTO) and Dwayne Sye (CIO).

Cvent may not be quite Mr. Popularity. I guess it has something to do with all corporate, suit and tie attitude their projecting, as opposed to a more Californian look. Nevertheless they are one fast growing tech company and they did steal the spotlight in 2011. That’s when they managed to raise $136 million – the biggest software investment deal since 2007.

After growing at a pace of over 50% every year until 2011 the company wanted to make sure they continue growing. In 2012 Cvent bought 2 mobile event management companies: SeedLabs (rebranded CrowdTorch) and Crowd Compass.

Cvent Key Takeaways:

  • Cvent is one of the fastest growing companies in event management software
  • It’s a multinational company with a taste for acquisition
  • It had its IPO in 2013 and it now has a market cap of over $1 billion

4. Xing Events (Former Amiando)

The company formerly known as Amiando was purchased in 2010 by Xing. Later on it was rebranded Xing Events. It’s worth mentioning that it was probably not a great exit for the company. Rumor has it that the €10 million paid for Amiando was not at all satisfying for early investors. Then again the company seems to be doing great in the last three years since the purchase.

Le Web partners with Amiando to manage events / sell tickets

Le Web partners with Amiando to manage events / sell tickets

Xing itself is not an overly popular company. It is a competitor to LinkedIn and that is a tough spot to be in. Being a german company they are doing pretty well in Germany. Zee Germans make up for 76% of Xing’s traffic. 90% of it’s traffic comes from german speaking countries (Germany, Austria and Switzerland).

It seems the joint venture took the best of worlds. In the last three years since the acquisitions, Xing, the social network, has been providing less value to Amiando than Amiando has been providing to Xing. Some fairly popular conferences organize their events and ticket sales using Amiando /Xing Events. One of them is Le Web, probably the most popular tech conference in Europe.

Xing Events’ best features are its integrated ticket sales / mobile app / entry management  solution. It allows its users to create event websites, customized ticket shops and process payments.

The product is now an end-to-end solution for event management and ticket sales and it’s growing fast, allowing Xing to expand its presence outside Europe.

Amiando Key Takeaways

  • Amiando was purchased by Xing in 2010 and has been growing steadily
  • It is now an end-to-end solution for event planning and ticket sales
  • The company acts as a payment processor / collector for ticket sales and charges a standard fee of approximately €1 / visitor + ~6% of ticket cost (registration fee + payment processing fee)

 

SEE ALSO: Ticket Sales Business Models – The Retailer, The Marketplace, The “Enabler” Platform »

3. StubHub

StubHub_logoStubHub, now a subsidiary of Ebay, is the world’s largest marketplace for secondary market tickets. It was founded in 2000 by Eric Baker and Jeff Fluhr, former investment bankers.

From the largest ticket marketplace in the US it quickly grew into world’s largest ticket marketplace, now serving US, UK and Canada. It is now the go to place for anyone looking into selling and buying tickets for sports events , concerts, theater and entertainment events.

After being featured in 2006 in Fortune 500’s fastest growing companies, StubHub was quickly purchased by Ebay for a reported $310 million . The company has now over 1250 employees and it’s expanding its operations quickly to keep up with growth. The mothership, Ebay, is actually forwarding ticket sellers to StubHub, in an effort to consolidate the market.

Interestingly, on of StubHub’s competitor, Viagogo, a company that has so far raised $65 million, was founded in 2005 by Eric Baker. Sounds familiar? It should. He’s one of the two guys that founded StubHub.

StubHub Key Takeaways

  • StubHub is the largest ticket marketplace for sports events, theaters, concerts and entertainment events
  • It was founded in 2000 and acquired in 2007 by Ebay for $310 million
  • It’s present in the US, UK and Canada

2. Eventbrite

Eventbrite Founders. Left to right: Julia Hartz, Kevin Hartz, Renaud Visage

Eventbrite Founders. Left to right: Julia Hartz, Kevin Hartz, Renaud Visage

Eventbrite is a self-service platform for managing and marketing events, selling tickets promoting events across social networks. It allows event managers to promote events and attendees to find these events and buy tickets.

The company was founded by Kevin Hartz and Julia Hartz back in 2006. Legend has it that after the two got engaged (notice the “Hartz”?) Julia moved to the Bay Area and helped setup the company . The platform was developed by Renaud Visage, current CTO and third co-founder. At the time the company was just a startup, Renaud was the only developer so for one year he developed, designed and maintained the platform.

Years later Renaud is still the CTO of Eventbrite. He is generous enough to provide those in the lookout for a roadmap to an $1billion company. Technically speaking. Here it is bellow:

Eventbrite did pretty well in 2013. 25% of its total sales up to date happened in the last 6 months.

Eventbrite did pretty well in 2013. 25% of its total sales up to date happened in the last 6 months.

In 2013 the company reported a total of $2 billion in total ticket sales, with $500 millions in the last 6 months. The company actually sold more in the past 6 months than it did in its first five years.

How did that happen – how could such a growth happen so fast? Two words: global expansion. Eventbrite started in the US but it’s now available in 7 languages and used in 179 countries.

“We… are ready to put even more power into our global presence” said Julia Hartz – Eventbrite President

Eventbrite has also acquired some companies on its way to the big payday (expect something big with this company). Eventioz and London-based Lanyrd were both acquired in 2013, after Eventbrite secured a $60 million investment, led by Tiger Investment Global.  The reason? Same as above – Global Expansion. Both companies listed above are doing great in the global presence department. Eventioz is an event planning and ticket sales leader in South-America. Lanyrd is a great resource for anyone looking into adding small and medium events such as “conferences, workshops, unconferences, evening events with talks, conventions, trade shows and so forth“.

Eventbrite Key Takeaways

  • Eventbrite is now the fastest growing mid-size events management platform
  • Its growth has been vastly accelerated in the past year
  • 25% of its total sales up to date happened in the last 6 months
  • Given the new investment, its fast growth and global expansion – expect something big coming up in 2014-2015. My bets are on an IPO/large acquisition deal. Maybe even trying to take on …

1. The King of the Ticket Hill: Ticketmaster

Ticketmaster is the granddaddy of all ticket sales and event marketing companies. It’s been founded in … get this … 1976. It’s the oldest and biggest company on the list. It has paid $388million for its three latest acquisitions, Front Line Management, SLO Ltd and Ticketsnow . That figure is 2.7 times bigger than Eventbrite’s total funding to date ($140million).

The company is the king of the hill when it comes to ticket sales for concerts. In 2010 it merged with Live Nation to create Live Nation Entertainment. Maybe you haven’t heard about the company but you’ve definitely heard about its operations. Besides its creepy “One nation under music” tagline, the company sports some of the most popular artists in the world.

Ticketmaster is a pretty big part of Live Nation Entertainment.

Ticketmaster is a pretty big part of Live Nation Entertainment.

The company manages artists, merchandise, tours and ticket sales for a bunch of artists you may have heard of: Jay-Z, Madonna, Beatles, U2, Justin Timberlake and more. Among them – this year’s media sensation: Miley Cyrus.

"That's Mr. King of the Hill".  There's no picture of Mr. Maffei not smiling but then again I think he's not the guy you want frowning.

“That’s Mr. King of the Hill to you!”.
There’s no picture of Mr. Maffei not smiling but then again I think he’s not the guy you want frowning.

On the company board sits mr. Greg Maffei, a seemingly not very important person, as he seems not worthy enough for his own Wikipedia page. He is, however, worthy of being the chairman of Live Nation Entertainment AND president of Liberty Media. Just as with LNE – you might not be very familiar with the company – but you do know its subsidiaries. Among them: Associated Press, Barnes & Noble, Time Warner, Viacom and others. Mr. Maffei seems to also be a pretty hard working guy: In 2012 he was the 3rd best payed executive in the US Media ($391mill). You may want to have a look at his payment sources (see previous link).

So that’s where Ticketmaster hangs around. With the big guys. It has the backing it needs, it has its ticket sales outlets, it has two fulfilment centers in  Texas and West Virginia. It has it all. So much that in 1995 Perl Jam accused Ticketmaster of excersing a monopoly over ticket distribution and used its market power to gouge consumers with excessive service fees. [see source]. The Justice Department, of course, cracked down on Ticketmaster’s unlawfully practices … oh wait… it didn’t. 

The Justice Department abruptly dropped the investigation without further notice. Of course that was a great decision for Ticketmaster. At the time the JD had its Antitrust resources stretched thin as it was investigating another company – Microsoft. Guess who owned 80% of Ticketmaster at the time? Well if it wasn’t Microsoft co-founder Paul Allen.

Ticketmaster is still the leader after a not so glorious past. Its practices are often frowned upon. Scratch that – Ticketmaster is actually one of the most hated companies in the US, its competitors are catching up and the company hadn’t had a stellar year in 2013. The company is a leader in its field. A hated, feared, sieged leader and it is a matter of time until it loses supremacy.

SEE ALSO: Ticket Sales Business Models – The Retailer, The Marketplace, The “Enabler” Platform »

Ticketmaster Key Takeaways

  • Ticketmaster is the largest company in ticketing and event management
  • It’s part of a very large conglomerate of businesses
  • It has a shady past and a gloomy future
  • Competitors will soon catch up

So these are the top 5 ticket sales and event management companies. There are, of course, others out there but this is a pretty good place to start if you want to get an understanding of ticket sales and event management industry.

There are also worthy mentions, smaller but very interesting companies such as Ticket Tailor, GuestManager and UK based Ticket Script.

SEE ALSO: Ticket Sales Business Models – The Retailer, The Marketplace, The “Enabler” Platform »

If in need for a more graphic overview on this post – click here to have a look at the “Ticket Sales Companies Infographic – Who’s Who”.

ticket-sales-infographic-thumb

The next post will focus on the anatomy of these companies, their business models and trends that will change the way we sell and buy tickets.

Pinterest Ads: Who Needs Them Most?

Pinterest has been growing steadily for the past year and some think of it as a possible competitor to Facebook’s social media turf. That means they do very well in the growth department.

Pinteresting Ads - source: Pinterest Blog

Pinteresting Ads – source: Pinterest Blog

Money isn’t a problem either (at least not for now), as Pinterest is slowly digging through $200 million in funding, but it still has to come up with a monetizing plan.

Pinterest growth rate decreasing in the US, increasing worldwide.

Pinterest growth rate decreasing in the US, increasing worldwide.

Last year’s try with Skimlinks probably looked great in a board meeting pitch but it caused quite a stir when word got out that Pinterest was changing it’s users’ links into Skimlinks affiliate leads. The company was accused of making money of its user generated content (which everyone understood, as … you know … servers cost money), without their consent or an explicit disclosure (which seemed to be not so easy to understand).

That was definitely a failed attempt at monetizing Pinterest’s growing userbase and they seemed to have learnt a lot from that. In the post announcing the new feature CEO Ben Silbermann promises ads will be:

  • Tasteful. No flashy banners or pop-up ads.
  • Transparent. We’ll always let you know if someone paid for what you see, or where you see it.
  • Relevant. These pins should be about stuff you’re actually interested in, like a delicious recipe, or a jacket that’s your style.
  • Improved based on your feedback. Keep letting us know what you think, and we’ll keep working to make things better.”

Pinterest Ads are great news for Ecommerce

pinterest-drives-ecommercePinterest is first of all popular. Not just in the US. All over the world. Users devote time into building, curating and browsing through handpicked photos of products, dreamy locations, fashion photos and many many others. Most things people collect and see pinned onto their boards do have one thing in common – they can be bought. And boy does it show:

  1. Pinterest drives 41% of ecommerce traffic, 4% more than Facebook
  2. Pinterest users are big spenders – at $80.54 average value per referred customer, Pinterest is doing better than Facebook ($71.26) and Twitter ($70.17)

All in all – Pinterest is the biggest social player when it comes driving relevant (and by that I mean paying) traffic to online stores.Yet not all industries are equal – some will benefit more than others when using Pinterest Ads.

Which are the categories that will benefit most from Pinterest ads, in terms of ecommerce sales?

You are probably guessing the leading industry but first here are the runners-up:

3. Travel

Travel pins account for only 2.5% off all pins but don’t let that small percent fool you. Pins get shared and in an industry where everything is judged by the numbers it helps improving your margin with a little thing called emotion.

Pinterest is great at instilling positive emotions and shifting purchase options towards recommended / shared locations. While it it was hardly worth the trouble to orchestrate a social media campaign that gets some kind of traffic rolling now everything will get easier with sponsored pins.

2. Home deco / home lifestyle

Home is the most popular category on Pinterest, with 17.2% of all pins categorized as home items. Not surprisingly either: 80% of all Pinterest users are women, more inclined to look into home lifestyle items and 50% of them have kids.

With an annual household income of over $100 000 or more for 28.1 % of Pinterest users, you can be sure that this is the place where you can market home related items. Brands such as Crane & Canopy actively engage Pinterest users and draw new products inspiration from the things they see trending on the social network.

1. Fashion

The big winner is of course Fashion, for both men and women. When it comes to style, beauty and clothing, 11.7% of all pins are pinned under Fashion and those pins usually come from popular users, influencers and fashion media outlets and bloggers.

Think the previous numbers are pinteresting? Well get this – Sephora’s Pinterest users spend 15 times more than their Facebook counterparts.

Sephora’s Julie Bernstein is unforgiving when it comes to Pinterest vs Facebook:

“The reality is that when you’re in the Pinterest mindset, you’re actually interested in acquiring items, which is not what people go to Facebook for,” Bornstein said. “Facebook continues to be just a great customer interaction tool that gives us the real-time ability to dialog with our customer; it’s a big customer-service venue for us.”

There’s no denying that Pinterest is here to stay when it comes to online retail. It probably helps to be pinning even if you’re not dealing into Fashion, Home or Travel as pinners are buyers. But if you are selling these products  then Pinterest Ads, a great addition to your Pinterest marketing policy, will probably bring a great deal of new customers to your business.

Twitter Starts Developing Commerce Operations. Hires Ticketmaster CEO to Lead Commerce Efforts

Twitter has recently hired Nathan Hubbard, former Ticketmaster president, to lead the charge on its commerce operations. This move is a part of Twitter’s efforts to pass the $1 billion revenue threshold by 2014. With its current revenues coming almost exclusively from advertising, Twitter figured it can unlock its social commerce potential, a market that is still untapped by most social networks.

Twitter's new Head of Commerce - Nathan Hubbard

Twitter’s new Head of Commerce – Nathan Hubbard

While Twitter’s intention is not exactly disruptive or unexpected, it is interesting to have a look at some of the subtle nuances. Hubbard recently declared in an interview that…

“We’re going to go to people who have stuff to sell and help them use Twitter to sell it more effectively. One of the hallmarks of Twitter’s entire approach has been partnering. We’re going to take the same approach with owners of physical and digital goods.

- Nathan Hubbard

Taking into account Hubbard’s words and the recent developments in social media and eCommerce some things are to be expected:

  1. It’s really important to note that Twitter’s efforts seem to be going into C2C territory, as well as the traditional approach into B2C. Twitter’s users may be empowered to exchange and trade stuff on the social network, an activity that is not that uncommon on its main competitor platform, Facebook. That may mean that Twitter’s commerce innovation will be to help transform its social network by adding a C2C commerce layer, not unlike Ebay’s platform. It does have the users, it might just as well let them trade.
  2. There seems to be a great focus on digital goods, as they may work better with the digital market Twitter is building. Some of Facebook’s best commerce results came from digital content, such as apps, especially Mobile App Install Ads. The Install Ads have helped Facebook increase its share of mobile – related revenue to 41% of total. But digital products is a far larger market than apps. It goes beyond to include concert tickets, airline reservations, hotel reservations, digital books and many others.
  3. You might have noticed that Twitter left the “e” out of its “eCommerce” operations as the company has a Commerce target. Both online and offline. A multichannel approach, if you will. As the lines between traditional and online retail have become almost invisible in the past years, Twitter seems to be looking into an integrated commerce approach, tracking and targeting the potential consumer via brick and mortar stores, as well as online. To help deliver metrics on such efforts, the company recently paid $90 million for Bluefin, a social and TV advertising metrics company.

 

There is a high chance that Twitter’s commerce efforts might not be all that spectacular, as even the mighty Facebook seems to be running around in circles when it comes to commerce, but I am personally looking forward to see where their efforts take them.

F-Commerce And Why Facebook Can’t Get It Up

facebook logoLess than a couple of years ago Facebook Commerce seemed to be inevitable. It just seemed one of those things that are just waiting to happen. Yet it didn’t. After a promising start, e-Commerce’s wonder child just stopped being interesting.

How did that happen? After all – so many were jumping the wagon and everyone was just eager to tap into Facebook’s social market. Well … Facebook’s IPO happened. Its market cap dropped. It got dizzy and greedy. All of a sudden Facebook stopped being a revolutionary product. It stopped valuing its users, be them companies interacting with customers or users (sometimes) willing to have a virtual conversation with a company.

Facebook got greedy and careless

Mark ZuckerbergIn may 2012 Facebook introduced “Promoted Posts”, marketed as another way for page owners to advertise their pages. It slowly, but surely, grew into a steady source of income and a few months later the company allowed page owners to promote pages not only to fans but also friends of fans.

It didn’t stop here. Sponsored stories were introduced in august 2012 and suddenly Facebook Walls stopped being ad-free.

Meanwhile, the Big Daddy of all social networks thought … “hey, there’s a lot of spam out there and people kind wanna spam each other on Facebook too. What if … “.

5 minutes and absolutely no second thoughts later, Facebook introduces … get ready … the option to send unsolicited messages to complete strangers. If paid. Wait a minute … isn’t this spam? Oh, yes it is.

While allowing advertisers to post ads on walls of people completely unconnected to their page, send messages to anyone on Facebook, whether they opted in or not, and generally ignoring the concept of privacy, the company still has the nerve to say … “The problem we face with the news feed is that people come to Facebook everyday, but people don’t have enough time to check out absolutely everything that’s going on” (Will Cathcart, Facebook’s News Feed Product Manager).

Really, Will? Really? So basically I, a Facebook user, don’t have the time to check everything. Unless it’s paid for and then I have the time to check it, even if I never subscribed, liked, opted-in or even thought about that particular piece of content.

Facebook has very long term strategy and short term tactics. How about something in between?

Given this approach, where Facebook showed absolutely no consideration for either users or advertisers, it was of no surprise companies were going to pull back a little bit on their Facebook spending. Facebook Commerce, potentially one of the greatest streams of revenue the company could have tapped into, given the rise and rise of online commerce, was badly affected.

Payvement, a company providing retailers with access to F-Commerce features, just announced it will shutdown Payvement and its partner website Lish.com. The market reacted quickly to the news. Media’s backlash focused on Facebook Commerce but the bottom line is not just about commerce. It’s about Facebook’s vision. We know Mark Zuckerberg  wants his company to usher in a connected world, with no communication restraints and no privacy. We also know that those who invested in the company early on are now pushing for financial results. What  we do not know, and probably Facebook’s management doesn’t either is – what is Facebook all about? Now.

In order to address F-Commerce issues the company may need to take into account a different perspective on its product and market. It has to address some issues such as:

1. Pages should reach their full audience. Free.

Right now the usual Facebook page post reaches approximately 7% of all fan base. Let’s say a Social Media Manager has the audacity to wish for its message to reach all of its fans. Remember – these are people that willingly pressed the “Like” button, knowing that means they will receive updates.

In the mean time – Facebook decides reaching the audience is unethical if unpaid for. Yet if you are a brand and you are willing to pay you can reach your audience easily. And their connections. And their inboxes. And soon enough – their mobile phones.

What is wrong about this is that Facebook never mentioned anything about promoted posts or limiting reach when the companies were developing their Facebook pages through ads, Facebook contests, Facebook content and others that were directly beneficial to the social network.

If you were a large retailer you would think twice before moving your ecommerce operations to a company that neither cares for your business nor does it have any clear development strategy.

2. Facebook.com is just a tool.

The social network concept is out there. Facebook is not innovating anymore. At least nothing useful and visible. Soon enough it will be replicated by a company with a better vision and greater care for its users and advertisers. It is not the first social network and it certainly won’t be the last. Judging by current events Twitter and maybe MySpace (the new one is just amazing) might actually stand a chance at Facebook if they keep on this way.

3. How about thinking before rolling in the changes?

Facebook is an engineers company. Trial and error was fun back in the day and it probably worked when there weren’t 1 billion users actively using it. If you think about it, Apple is also an engineers company but it evolved a human approach. They listen to their customers, even when they are not speaking. Unlike Apple’s, Facebook’s customers, the advertisers, are not really glad about their purchase.

How about the company puts a little more effort into improving its user and customer experience and less into imposing new features that usually help no one?

Bottomline

Facebook needs to think a little bit more on its overall strategy. It really has to figure out what the “F” in F-Commerce stands for. Mark, you gathered 1 billion people, you got this far, don’t “F” it up!

Mobile, Social search, Photos and iOS integration makes Facebook Stocks Rise

After dropping more than 50% since the IPO, Facebook’s market cap restarted growth following Mark Zuckerberg’s on-stage interview at TechCrunch Disrupt. The company closed today with a 7.62% increase in its share price. Several factors could have lead to this fortunate turn of events but the keywords are: mobile, social search, photos and iOS integration.

facebook market capitalization growth

A surprising growth in Facebook market capitalization

Facebook’s focus on mobile

On stage, Mark Zuckerberg made it very clear that Facebook is focused on mobile growth. A very bold statement, probably targeted at investors that so far have had their fair share of drama, was “On mobile we are going to make a lot more money than on desktop”.

Facebook has more than 488 million mobile users and the numbers are growing fast, due to increase in smartphone and mobile internet adoption. Recently the company introduced new ways for advertisers to target mobile users through sponsored stories. The advertisers were not so fast to switch to mobile ads, however: although mobile revenues are estimated at about $72 million this year, the figures are below Twitter’s estimates.

This situation is sure to change as Facebook’s focus seems to follow the mobile trend.

Facebook search

Probably the most important thing Zuckerberg mentioned was the fact that Facebook now serves 1 billion search results per day, “without even trying”. To put that in perspective – that is 10 times the number of Bing searches and approximately 30% of Google’s searches. Imagine that – 30% of the world’s largest search engine.

With social input Facebook search can potentially deliver better results than Google. After all, Google is not really good at answering questions but rather locating information. Facebook users usually ask their friends for help on different issues and this type of behavior creates a huge pool of data Facebook can use to answer questions in a very efficient way. Even “without trying”, Facebook has recently started monetizing its searches through contextual ads.

Facebook and Instagram Photos

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Image source

Zuckerberg mentioned that there is no hidden agenda in Instagram’s acquisition. They want to help the app grow and so far they increased exposure by 1100%.

Photos seem to be a very important area in future Facebook development. Although it’s obvious that photos have a positive psychological effect on users and increase revenue through photo-page delivered ads there is probably something that we don’t know yet.

iOS integration

Facebook is deeply embedded in iOS 6

iOS is the most popular mobile operating system on the Internet, with an astonishing 65.27% of all mobile internet users. Today Apple announced several news, including the long awaited iPhone 5, the new iPod touch and some social features based on Facebook and Twitter social relationships.

Having been integrated in the world’s most popular OS means big exposure for Facebook. Even more – it means an increase in revenues.

As I mentioned a few days ago Apple and Facebook were planning and started rolling out a deeper iTunes integration. Although Facebook is just starting monetizing its mobile users, Apple is one of the best at this game. Using Facebook’s social features Apple can sell even more, bringing a new stream of revenues for both companies.

It seems as though George Soros knew what he was doing when he purchased Facebook stocks