4 Reasons Marketers Will ‘Want’ Facebook’s ‘Buy’ Button
As many marketers complain their organic engagement with Facebook fans is down 40 percent while their total posts are increasing by 20 percent, other brands are reporting the more targeted approach from Facebook—of placing only relevant posts in users' news feeds—is causing their engagement rates to double. So both groups may be intrigued by Facebook's newest attempt to improve the ROI of marketing on the social network.
On July 17, Facebook announced the network would beta-test a "buy" button that would essentially turn marketers' posts into e-commerce vehicles. To see an example of the button in action, take a look at the three screen grabs in the media player at right.
On July 22, AllFacebook published Mairead Ridge's piece called "4 Reasons Why Facebook's New Buy Button Is a Win for Marketers." The senior manager of marketing at New York-based consumer-created content curators Offerpop suggests four reasons marketers may love Facebook's "buy" button:
- Faster Conversions: Facebook users don't have to go to a company's site, they can stay on the social media site and buy.
- Better ROI Measurement: It's easier to demonstrate that the place where marketers are spending money is the same place where consumers are becoming customers.
- Better Segmentation and Targeting: Facebook already has the data. "Social data provides up-to-the-minute insights about consumer preferences, demographics, behaviors and relationships," Ridge writes.
- Buying Decisions Involve Social Networks. Citing an offerpop infographic, Ridge writes that 92 percent of consumers trust word of mouth more than any form of advertising. [Author's note: This is aspect of research where it pays to look at the fine print. A Gallup poll found 94 percent of respondents use social media to connect with friends and family, from whom they solicit and accept advice on potential purchases. However, 62 percent of those same respondents told Gallup social media has "no influence at all" on what they buy.]
Is a "buy" button a good idea on Facebook? On Twitter? Is there another social network that needs a "buy" button? Why?