The Networked Consumer: Social Commerce Challenges
Categories: Distribution, Marketing, Online Advertising, Social Media, Startup City
Posted by Inge Scheve.
Consumers are increasingly skeptical of traditional advertising, more likely to trust peers for product recommendations and completely networked – and as the digital natives move out of the dorms and into the business world, this trend is only going to get stronger. What is the impact of these networked consumers on the marketing landscape?
E-commerce grows up. Social is the new currency. Established companies adapt to a new reality, and new companies have surfaced in the wake of social media – entirely to capitalize on social network marketing.
This is the first article in a series exploring social network trends in online commerce and how some Seattle companies are navigating the landscape.
It is interesting to note that some of the most successful new technologies don’t actually invent anything new: peer-to-peer advertising is in fact the oldest variety around. It precedes any mass medium. New technologies, however, make peer-to-peer recommendations more efficient, faster and with a broader footprint than the cave-man version.
According to Kathy Savitt, CEO of Seattle based Lockerz, 73 percent of “Generation Z,”–those born after 1992–purchase products based on recommendations from friends. Lockerz is a member-based web community that rewards users for listening to music, watching videos, answering questions and sharing photos. They base their whole business model on peer-to-peer social networking and “word of mouth” marketing strategies. Read more…











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