Our Obsession With Convenience Will Make Facebook The World’s Largest Commerce Platform
In this guest post, managing director of social and content agency We The People, Jacob Arnott (pictured below), says if you reckon Facebook is all-pervading now, you ain’t seen nothin’ yet!
Earlier this year, a Facebook executive told a panel at the eTail tech conference in Palm Springs that Facebook’s new focus was “to help retailers through the purchase and post-purchase phase.” Typically, when Facebook has ever discussed “helping” an industry, they really mean they’re gearing up to ‘disrupt’ that industry.
Translation: Facebook is looking to disrupt retailers through the purchase and post-purchase phase.
Facebook has long mapped out publicly their aspirations to drive a ‘zero friction’ purchase future but has yet to cash-in on the ability to complete product purchases on-platform. Facebook ran a pilot of their ‘Checkout for Instagram’ feature last year which gives users the ability to purchase products inside the Instagram app without having to visits a brand’s website and input their credit card or postage information.
And by all reports, it was a roaring success. Adidas reported a 40% increase in online sales in the US during the first three months of 2019, largely attributed to their involvement in the Checkout beta trial.
You might scoff at those headline results, but the behavioural insights driving this innovation suggest that Facebook’s momentum towards becoming a commerce platform, has the potential to cause significant disruption.
Uber offered us a way to order a ride with the touch of a button and without the need to talk to another human. Netflix removed the need to visit your local Blockbuster on a Friday night. Google sorts through billions of webpages to show you the information you’re most likely looking for.
Our obsession with convenience made Tinder the place you’re most likely to find your partner and our society effectively cashless with tap-and-go technology. A frictionless, convenience-driven experience has time after time won in the market.
It shouldn’t then be such a surprise that when we mix this love for convenience with one of the biggest pools of your personal data (your Facebook and Instagram accounts), that we’re running headfirst into another consumption disrupting event.
But this wave of disruption won’t land with a big bang. It will bubble up as a trickling stream that will eventually become a raging river.
Uber Eats and Deliveroo have had a similar impact on the hospitality industry, slowly but surely dragging revenue streams away from in-store dining in favour of a lazy night-in. This hasn’t shuttered fooderies; however, it has had a profound impact in how they operate, including the opening of delivery-only ‘dark’ kitchens.
When Facebook’s pivot to becoming a commerce platform takes full flight, retailers won’t close, history says they’ll just be forced to pivot.
In Facebook’s social commerce utopia, we’ll see a previously unseen trifecta of behavioural forces. Single-touch convenience will be mixed with an algorithm that knows you incredibly well, in a forum observed (and judged) by hundreds of your closest online friends.
Unlike Amazon and the already disruptive impact it’s having on retailers around the globe, Facebook already has a captive audience that spends hours a day liking, sharing and messaging. Amazon can help you find what you’re looking for, but Facebook will be able to help you find what you’re not looking for – and help you buy it straight away.
So, should we take this incoming disruption as an exciting new reality or scary horizon?
In Facebook’s new commerce reality; the performance of your Instagram posts will be measured in dollars, not likes. Influencers will become your brand’s most important in-store assistants. Brands and retailers that are able to quickly adapt and integrate social commerce will likely do well. Building a digitally led brand on social media will be the key to disruption-proofing a brand.
All the pieces of this puzzle suggest that if they get this formula right, Facebook will become a fully-fledged commerce platform to be reckoned with.
Fortunately, or unfortunately for retailers, this next wave of disruption might be closer to hitting the shore than we think. Facebook has ramped up its rollout of new products and features in-light of the coronavirus crisis driving a surge in attention to the platform.
Facebook Engineers began testing the integration of Facebook Pay (their version of PayPal) on Instagram late last month, suggesting they may be gearing up to go wide with ‘Checkout’ sooner rather than later.
Latest News
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.