While retailers have long fretted over whether social media sites drive adequate sales, major players in the category seem to have no intention of backing away from Facebook, Twitter and Instagram. But a new study might change their minds.
Between January and March, e-commerce vendor Custora crunched data about $100 billion in sales among 500 million shoppers and found that only 1.5 percent of retailers’ last-click e-commerce transactions came via social media. Within that sliver of activity, Facebook dominated 81 percent of sales, while shopping-centric Pinterest generated 10.8 percent and Instagram, YouTube and Twitter collectively yielded 5.2 percent.
“If you’re looking on a last-click basis, there’s been no movement in terms of social media platforms. Even the advent of buy buttons has done absolutely nothing to move the needle,” said Claude de Jocas, a lead analyst at digital research firm L2.
By contrast, tried-and-true digital tactics like search, email and affiliate marketing dominated 70 percent of retail transactions in the study, while another 20 percent of sales were simply impulse purchases where marketing had no influence. Long-tail efforts like display ads, text messages and push notifications accounted for the remainder of sales—essentially making social seem dead in the water.
Article by Lauren Johnson.
View the full article at Ad Week. http://www.adweek.com/news/technology/even-mobile-world-retailers-arent-convinced-social-media-can-sell-170576 .