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.
Leading Australian market research data brand, RDA Research, provides actionable consumer intelligence to help businesses inform decision making and growth strategies. RDA Research wanted to make its unique consumer data available for addressable digital targeting and required a data onboarding partner to help activate their data in an online environment.
Storytelling agency Enthral has appointed Channel 7 reporter and sports presenter Sean Sowerby as its new senior PR and content manager in Melbourne. Sowerby (pictured) started his award-winning career at 3AW before spending more than 15 years in television. Enthral founder and manager director, Cameron Smith, spoke of the significance of Sowerby joining the agency. […]
This week Nova’s Fitzy & Wippa are celebrating 10 years of their iconic radio show and plenty of famous faces have weighed in on the feat! For Fitzy & Wippa’s 10-year anniversary show they were joined by a bunch of special friends who shared their messages and favourite memories over the last decade. The guys […]
Ever since Google first announced it would be getting rid of third-party cookies on Chrome, digital advertising businesses have been actively sharing their plans for life after cookies. And now programmatic advertising company Blis might have come up with the most creative way to get the message across, in a new video which sees company […]
Integrated Melbourne agency Icon has taken top honours in the 2021 SABRE Awards, winning the coveted Australasian Consultancy of the Year for 2021 along with a host of category and craft awards. Icon led a large field of Australian agencies with a total of three major and seven minor awards, including gold in the cause-related […]
Former agency executives Tim O’Neill and Tim Fouhy have launched the auto technology startup Summon. Australia’s first full e-commerce service for prestige cars. O’Neill and Fouhy both founded Reactive, a digital agency, which was bought by Accenture in 2016. Following the deal, O’Neill and Fouhy ended up leading the company’s digital marketing arm, Accenture Interactive before […]