Retail e-commerce sales reached new highs during the holiday shopping season last year. Record setting online sales on Black Friday and Cyber Monday point to even greater and new highs this year.
With shoppers citing social networks as their leading online shopping portal, it’s no surprise that 25% of retailers report their most effective online ad techniques are on social networks (third to dynamic optimization (28%) and retargeting (26%) – both of which can also be done on Facebook).
Fab.com and Levi’s are two retailers who have benefitted tremendously from Facebook this holiday shopping season. These sites have not only attributed a large fraction of referral traffic from Facebook, but a considerable portion of their sales and revenue:
One of the fastest growing and hottest flash sale sites on the web right now, Fab.com has relied heavily on Facebook advertising for new user acquisition and to generate awareness for new flash sales and products. Their CEO recently released results from the shopping period from Black Friday through Cyber Monday: 25% of Fab’s $1.1M in sales were attributed to people who originally joined the site from Facebook.
“Without a doubt, Facebook is far and away our most important source for both new members and for ongoing engagement of our members.” -Jason Goldberg, Founder & CEO.
Ramping up for the holiday shopping season and in an effort to drive incremental sales via social, Levi’s integrated Facebook Like buttons on individual products on their website. This enables shoppers to share products they like, are about to buy or have bought with their friends on Facebook. With this Like button integration, and by virtue of posts to friends, Levis doubled traffic to their site. As for Cyber Monday specifically, the company reports that 50% of Levi’s website traffic came from Facebook.
(Levi’s results were shared in a recent webinar presented by Facebook and IBM on social marketing.)
Holidays 2010 & Purchase Affinity on Facebook
If the results from Fab.com and Levi’s aren’t enough to convince you that Facebook should be a core part of your marketing efforts this holiday season, let’s recap some results from last year and highlight purchase affinity on Facebook.
Social networks received a 17% traffic boost during the holiday season in 2010. More people became members of these social networks, and each were connecting with friends and family about what purchases to make. 57% of consumers used social networks to shop last year, with awareness about deals as the most frequented activity followed by learning about and soliciting advice from friends and family about what to purchase.
Nearly a quarter of shoppers report that retailer Facebook Pages are “influential” or “extremely influential” on their purchase decisions. And this purchase affinity goes beyond Pages. Social network visitors are more than twice as likely as the overall consumer to convert and make purchases on retail sites, according to IBM. 8th Bridge has added to this research, diving into specific sectors with their latest social commerce report, and revealing that fashion brands in particular top the charts. Fashion brands receive 76% more traffic and 25% higher shopping rates than general retailers from Facebook.
We hope the above results help inform why your company should advertise on Facebook during the holiday shopping season this year!