Facebook Inc (NASDAQ:FB) has been working hard on increasing revenue and user engagement, which in many ways do go hand-in-hand. In recent months the company has been finding itself making some real inroads in the mobile space, where Facebook claims three of every five users access the social network from a mobile device. Another angle Facebook has been trying to accomplish has been the world of e-commerce, where Amazon.com, Inc. (NASDAQ:AMZN) has been the king and even Google Inc (NASDAQ:GOOG) has been getting in on the act with its Google Search option as well as Google Shopping.
While stores about the e-commerce infrastructure at Facebook Inc (NASDAQ:FB) being rather fragile – first the platform was established with a few retail partners, then it was shut down for apparently a revamp, and now it’s back up to speed – the platform has at least been producing some results for those partners that have been involved, according to the latest information in a study conducted by Monetate.
The survey checked on the sales-conversion rates of several search engines and the most popular social networks – Facebook Inc (NASDAQ:FB), Twitter, LinkedIn Corp (NYSE:LNKD) and StumbleUpon – to find out which ones have the best conversion rates and the best average sale amount for each conversion made.
What the survey found was that, no surprise, the search engines all had better conversion rates than any of the social networks. However, market-leading search engine Google Inc (NASDAQ:GOOG) was actually last among all search engines in conversion rate, with just a 1.7-percent success rate. The top-converting search engine, by the way, was AOL, Inc. (NYSE:AOL) at nearly 4.5 percent. But among the social networks, Facebook Inc (NASDAQ:FB) not only won on conversion, but it lapped the other social networks with a 1.1-percent clip, which was three times the rate of runner-up Pinterest.
And when it came to the second metric of measuring the average sales value of each conversion from a social media site, Pinterest took the top spot with more than $80 of sales per conversion, with Facebook Inc (NASDAQ:FB) coming in second at $71 per order. So while you may get less per sale from Facebook referrals, you also will get three times the sales – which seems to make the argument that there may be something to be said for being on the world’s largest social network for e-commerce.
What do you think? What would be your takeaway from this study and how do you think Facebook Inc (NASDAQ:FB) can – or would – leverage this in developing its e-commerce platform? Give us your feedback in the comments section below.