[July 17, 2018] |
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Report: The Undercover Arms Race between Media and Commerce Platforms
Media, advertising and commerce have historically had a symbiotic
relationship. The equation was simple: customer sees an ad via media and
buys a product via a retail outlet. Today, there is a growing friction
between e-commerce and media platforms, which are both competing for a
finite amount of consumer attention, and this friction threatens to
upend an age-old balance of power, according to a new report.
This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180717005687/en/
Social media platforms are increasingly entering the e-commerce space
with native features that support consumer purchases. This subtle shift
has begun to unseat the unrivaled dominance of online transactions that
has traditionally been held by e-commerce platforms and digital
marketplaces. Simultaneously, e-commerce sites are beginning to
introduce rich media and customer-centric marketing technology in order
to foster some of the engagement and relationships currently owned by
social media platforms. These two shifts illustrate a friction in
today's go-to-market strategy and a rising competition in the retail
industry.
This disconnect is explored in a new report, released
today by Magisto, which found that businesses aggressively create
and maintain e-commerce profiles, but rely most heavily on social media
to market their businesses. The market gap centers around the fact that
the traffic they generate in doing this pushes consumers to either their
own websites to generate sales or back to their own social media
profiles to foster engagement. Magisto surveyed over 750 marketing
decision-makers, who illustrate the market dynamics in these five data
points:
1. 75 percent of businesses report managing one or more profiles on
third-party ecommerce sites
2. 71 percent of businesses report using social media more than any
other digital medium to market their business, 177 percnt more than
e-commerce sites and 122 percent more than paid advertising
3. Respondents are 138 percent more likely to drive traffic to their own
websites than to an e-commerce site with their marketing efforts
4. 72 percent of businesses say they'd be more likely to use third-party
e-commerce sites if they offered more tools to actively market/promote
their business
5. 50 percent say that if social media platforms offered direct sales,
they'd be more likely to use social media for all of their business and
marketing transactions
"Contemporary marketing strategy centers around building long-term
customer relationships through authentic content creation and social
conversations. As more and more businesses crack the code on social
marketing, it's only logical to add commerce as a companion and end
point to social narrative," says Oren Boiman, CEO of Magisto. "Today
businesses are using third-party e-commerce profiles as a transactional
way to capture passive and highly fragmented demand for their products.
Conversely, businesses are using social and owned media to actively
foster relationships, generate product demand, and drive sales. This
dynamic will increasingly put e-commerce back on their heels, struggling
for relevance."
Social content marketing is a driving force behind the competition
between social media and e-commerce. The report highlights an
opportunity for social media to win an enormous slice of digital
commerce and the need for e-commerce sites to increase their native
marketing and content creation abilities. Only 47 percent of respondents
said they were satisfied with their ability to target desired audiences
and proactively market through third-party e-commerce sites, and 72
percent said they'd be more likely to use e-commerce sites if they
offered richer ways to create, edit and upload content natively. Nearly
half (49 percent) of marketers specifically called out their desire for
native video creation as a feature that would make them more likely to
use e-commerce sites. This point is especially important considering 64
percent say the content they upload to e-commerce sites is created
specifically for the platform and 48 percent say if social media
platforms offered direct sales, they'd be more likely to use social
media for all of their business and marketing transactions.
"Word-of-mouth has always been the most powerful form of marketing.
People trust their friends' and family's opinion in all things,
including purchase decisions. The phenomenal thing about social
platforms is that they have made word-of-mouth a form of media," said
Reid Genauer, CMO at Magisto. "Content is still king, but the nature of
that content today just happens to be bottom-up social storytelling.
Fostering the ability for individuals and businesses to create, edit and
manage digital narrative is a make-or-break feature set for any
business, but specifically for e-commerce sites. Without it, they risk
becoming passive observers to the new digital marketplace."
Magisto surveyed over 750 marketing decision-makers in the U.S. in May
2018. To view the full online report, click
here.
About Magisto
Magisto is the most popular smart video editing application for
businesses and consumers around the world. Businesses use Magisto to
create and deploy video marketing creative with unprecedented ease,
agility, speed and Return on Attention (ROA).
Magisto uses Emotional Sense Technology™, a patented story detection
feature that automatically analyzes and edits raw video footage and
photos into produced personal movies and professional marketing videos.
Magisto is available for iOS, Android (News - Alert) and the Web. It's not magic, it's
Magisto. For more information visit magisto.com
or find us @magisto.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717005687/en/
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