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Webtrends-Adgregate Social Commerce Whitepaper 03172011

Webtrends-Adgregate Social Commerce Whitepaper 03172011

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Categories:Types, Research
Published by: officebox2020 on May 02, 2011
Copyright:Attribution Non-commercial


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MARCH 17, 2011
 The Eect o Social Networksand the Mobile Web on Website Trafc and the Inevitable Rise o Facebook Commerce
An interesng dilemma that companies have been facing of late is whatlevel of promoon is necessary for their website vs. their Facebook page.Recent campaigns show evidence that a few companies have brokentradional norms in direcng trac directly to their fanpage, surpassingtheir websites. What started as a means to an end of drawing people towebsites is becoming an end in itself. Such a blatant favorism showcasedtowards the Facebook presence of a brand is not without reason. Withaccess to more than 600 million members, an ever increasing fan baseand an opportunity to engage closely with the audience, companiesdesire a glorious ride on the social sea. But where does all this leave thewebsite?There is a popular percepon that brand websites are losing trac totheir Facebook counterparts, although only a couple of examples havebeen cited in blogs. As a step towards nding quantave evidence, weanalyzed the website trac of Fortune 100 websites based on ‘uniquevisits’. The study revealed that 68% of the top 100 companies wereexperiencing a negave growth in unique visits over the past year, with an
• Websites that do not engage in e-commerce are losing tracto their Facebook pages at a startling rate• Facebook stores are very ecient at trac acquision ac-quiring visitors at no cost through wall posts and establishinga store monthly user base equal to 1-10% of the retailer’s fanbase• Facebook commerce conversion rates ranging from 2% to 4%are on par with Commerce websites.
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average drop of 23%.To ascertain if Facebook had a part to play in this decline, unique visits to a brand’s websitewere compared with unique visits to its Facebook page (obtained using fan count as a proxy)within a three to ve month period. In a sample of 44 companies, 40% exhibited higher tracto their Facebook page compared to their website. When these companies were categorizedbased on the presence or absence of e-Commerce transacons, we found that the majority of the companies (65%) in the ‘Non e-Commerce’ category received higher trac on Facebookcompared to their website. On the other hand, most companies (about 77%) featuringe-commerce did vastly beer on their websites, although exhibing a sharp decline in annual
Finally, we examined the recent growth in Facebook commerce, in parcular e-Commercetransacons occurring in stores within Facebook pages and newsfeeds. Adgregate Markets,a provider of Facebook commerce services, has signed over 50 retailers, most in the InternetRetailer Top 500, over just the last few months. With early data from Adgregate Marketsindicang that their network of Facebook stores are more ecient at acquiring visitors and justas eecve at converng them, Facebook commerce appears poised to take o.We conclude from this research that Facebook is gaining tremendous popularity as a desnaonto connect with brands online, and is increasingly chosen over the websites of certaincompanies. Though there are websites sustaining trac in spite of Facebook, we predict thatit will be short-lived unl Facebook catches up with e-commerce in a big way, which the datain this thesis indicated is just around the corner. With the mobile web also growing in size andpopularity, it is me for brands and retailers to understand that surviving online is no longerabout all-in-one websites, but measuring and improving performance in all the social, mobileand web enes.
Majority of companies (68%) in the top 100 list experienced fewer visitsto their websites indicated by a negave percentage change from 2009 –2010 (Figure 2). The average drop was -23.02%, and the range varied upto -76%There was no strong correlaon among companies that receiveda posive trend in terms of industry vercal, although most of thecompanies with e-commerce transacons sustained higher trac levels(not surprising given the amount of budget retailers expend driving tracthrough SEO, online display, email, etc.)
To test the hypothesis of decreasing website trac, we analyzed the one year (Nov 2009 – Nov2010) trac trend of the top 100 Fortune 500 companies. The number of unique visitors towebsites was obtained from Compete.com and the percentage decrease/increase calculated.(Figure 1)

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