Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Facebook Inc (FB) Losing its Power as Retail Marketing Tool?

Facebook Inc (NASDAQ:FB) is losing its power of influence over retail customers according to a new report by Capgemini entitled Digital Shopper Relevancy Report. As Forbes reported, the new report shows that people are placing less emphasis on following retail brands on social media, and making their purchasing decisions through those avenues.

facebook FB social media world icon computer internet

The report instead showed that Facebook Inc (NASDAQ:FB) and social media’s relevance in the retail shopping experience peaked in 2012 and has been on the decline since. In its place, new and old methods have sprung up which are proving better able to influence customers and provide them the information they need, including apps, emails, in-store technology like price checkers, as well as an improved retail experience itself, with more knowledgable and attentive staff.

If there is one bright side for Facebook Inc (NASDAQ:FB), it’s that emerging markets showed a much greater propensity to rely on social media and other technology to enhance their shopping experiences. While only 60% of people in mature markets like the U.S, U.K, and Germany were considered willing to use social media in conjunction with their general shopping habits, 77% of people in emerging markets were considered voracious online shoppers who use every tool at their disposal to hunt down deals, including social media.

On the other hand, a separate study by Collective Bias found that those who do become fans of a retailer on Facebook Inc (NASDAQ:FB) end up spending 50% more money with that retailer than non-fans do. Active posters on grocer’s Facebook Inc (NASDAQ:FB) pages were also found to spend about $1,000 more annually and visit the store more often than others.

However, in the case of the latter study, which Forbes reported on as being a counter of sorts to the first study, there seems to be a lack of cause and effect in the data that makes it far less useful than that study. There is nothing about the data that shows people are spending more because they are fans on Facebook Inc (NASDAQ:FB) (or likewise, that they would spend less if Facebook Inc (NASDAQ:FB) didn’t exist). More likely, they are fans because they are already spending more at those retailers and already think highly of them.

Either way, the two new reports raise some interesting questions about Facebook Inc (NASDAQ:FB)’s ever-evolving role in retail, now and in the future.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!