Marketing Trend reports continue to suggest that online retailers have a huge opportunity to use social networks as a sales channel.

Most of these internet retailers are attempting to use traditional advertising methods and static pages to reach out to the connected-groups on the web. This approach has yielded a mixed result, due to the unique nature of social network usage.

In one trend report the author suggested that…“A critical challenge remains the ability to effectively harness the marketing intelligence inherent in the way people communicate and interact with one another through the digital medium and make it actionable”.

Since most of the social web is built as a mimic of social interactions from the real world, we might find an actionable e-commerce solution the same way.

We know that people purchase things for each other desiring to ether give support or to build up a relationship. The act of delivering the item carries the non-verbal message that someone cares enough to sacrifice money, thought and time for someone else.

When this delivery is completed in person, the added verbal communication, facial expressions and physical contact reinforces the message. It is hard to beat going to Target, wrapping a gift and then showing up on the doorstep of someone you love.

The disconnected nature of e-commerce takes this physical interaction from the process, loosing some of the impact of the message.

Social networks and e-Retailers are trying to find solutions to this disconnect, and they will eventually find a good mimic.

The answer will come as we apply more of the product distribution activities we use in our real social life to the process.

Any great ideas?

Two powerful families are married for user convenience and for future opportunity.

So far, the wedding has been kept hush hush and is flying under the radar… So don’t expect this to make the front pages of the tabloids anytime soon.

It seems the social media superstar Facebook, with its huge entourage of friends has been secretively matched to Amazon’s world leading product inventory, by a party application developer.

Like most weddings, the focus is on a party, and in this case the party is the center of attention. Gifts for the party are to come from the Amazon side of the isle and the guest list will be handled by Facebook.

E-commerce insiders understand that the Facebook family is a very close-knit bunch and that an arraigned marriage will benefit both sides in this case. Massive gift sales is on the mind of the Amazon group and greater support and conversation is what Facebook members are counting on from this union.

Social media followers feel that the long-term success of this marriage will likely be a result of the party atmosphere in which the two have found common ground. Sociologists have long known that couples who communicate well and share with one another have a better than average chance to find success.

The fact that Amazon will shower the Facebook family with gifts should keep both parties happy, particularly when the Facebook side can see the profits that can be generated through real gift giving. Of course, Amazon is happy to offer gifts to a partner who has so many family members pre-disposed to share with each other.

This marriage is expected to produce several great party applications that will benefit the entire family during birthdays, weddings, baby births and many holidays. The next generation of Facebook applications will benefit from the superior DNA of Amazon and Facebook to build a great experience for the users of social networks.

Look for more details of this story as they develop….

There are

Baby boomers are joining the social networks, but are they being social? There are some indications that they only join for specific reasons, and they don’t participate like younger demographics. Does this mean that social networks fail the Boomer?

No, it just means that Boomers need the networks for different reasons, and they may not have been invited to the right party just yet.

This age group sees Facebook and Skype as tools and not entertainment.. And if the tool doesn’t connect them generationally and historically it is the wrong party.

Generational, in that they want connection to their parents, children and grandchildren. And historically so that they can reach out to people from their past and get “caught up”.

Penny Ireland’s family is so scattered around the world, that Facebook has become the family’s No. 1 way to communicate.

Margaret Brooks, of Idaho Falls, Idaho, joined the site because there was no other place for her to see her grandson’s artwork.

Sarah and I relate to both Penny’s and Margaret’s needs.  We have raised our family, but don’t want to miss out on the great things that are happening in their lives, right now. Boomers want to be able to continue to provide support, even when distance works against their efforts. Facebook provides a place to use the social networking tools in an efficient and pointed way.

Facebook has been growing particularly rapidly amongst people over 45 in the US, with growth of over 165% amongst both men and women 45-54.

And all of these Boomers are beginning to become Seniors Citizens, reaching sixty years old. As the social networks build the tools that older Americans need, they will be inviting even more people into the party. And reaching the Boomers today, with the right social components, will deliver marketers with a well trained, well financed group of customers for many years to come.

Cynthia Edwards, posted the following in an email marketing blog;  “Seniors are a rapidly growing segment in our society, and one of great potential value to marketers. According to the US Census Bureau, in the next five years alone, the population of those over 65 will increase by 40%, from 36.8 million to 51.7 million.  In the U.S., that could add up to 88.5 million people over 65, comprising 20% of the population”.

Facebook does have more active users in the younger demographics, but some of the tools that are associated with this network giant are the perfect fit for the boomers and seniors of tomorrow.

There is a movement afoot to move some commercialization onto this conversational superhighway, and the jury is still out whether it will add to the experience or create a road littered with potholes.

In a recent discussion on the merits of e-commerce stores on the Facebook highway, Shiv Singh, vice president and global social media lead at Razorfish. suggested that, “e-commerce activities should be presented in ways that don’t intrude on the conversational flow of Facebook.”

We agree with Mr. Singh that a social superhighway cluttered with billboards and shopping malls will disrupt the flow. But we believe there is value in providing e-commerce real estate when it enhances the personal interaction and makes the conversation grow.

The discussion focused on a coffee merchandiser who is moving an e-commerce operation onto a Facebook page. Michael Straus, spokesman for the coffee company suggested that they were “looking to integrate its social media strategy with e-commerce”.

It could be augured that coffee shops are a regular landmark along any highway and are also recognized conversational hubs. So coffee shops might be a good idea for Facebook users.

But what other retail shops would make the social road more enjoyable?

Another thought leader was concerned with the idea of selling stuff on Facebook. Mike Lazerow, CEO of Buddy Media said, “People aren’t using Facebook right now to buy stuff”. “They use it to talk to friends, see pictures, play games, learn about new products, connect with companies and products that they love.” He suggested that this mindset might eventually change as shopping opportunities become part of the typical Facebook experience.

Direct selling on Facebook is very new, but so far, most agree that the key is to make the activity a part of the conversational format that attracts users to the experience.

We support Mr. Lazerow’s contention that friends, pictures and games are the conversational resources that currently fuel the Facebook engine. We understand that any e-commerce application should be a good fit for the road, or should stay off the highway.

We suggest that gift shops are a good fit and will be common on the social networks in the near future. These e-commerce stores will be stocked games and group activities that will allow real gifts to become a part of the conversation and the support among family and friends.

In that day, the Facebook experience will include established online gift merchants who support the birthdays, weddings, baby births and holidays that are shared by every conversationalist on the road.

The social highways will be full of large motor homes filled with groups enjoying a fun game and some real gifts that they picked up at the roadside gift store.

How do you see e-commerce merging onto Facebook?

Thanks to enchantedhighway.net for the image. (you should visit this place and see the huge metal sculptures)

Gary Hayes has created this dynamic chart that demonstrates the real-time growth in social media. Pay attention to the ratio of virtual product sales and the REAL gift sales on Facebook. Then ask yourself 2 questions…

1. Is there room for growth in selling real gifts in social media?
2. Who is moving the real gift sales in social media forward, besides Facebook?

We watched the chart for 60 seconds and determined that over $10,000 was spent on virtual goods in the same time that less than $140 was spent on real gifts in Facebook.

We realize that this is an apples to pears comparison, because virtual goods encompasses all social media channels and Facebook gifts only measures a portion of a small service on one social network. And the chart does not track all of the real products sold by affiliate links from social sites. But it does show an opportunity for growth, especially when you consider that social media is a virtual mimic of real human interaction and that virtual purchasing mimics real-life  purchases.

Here is the thing you might want to consider… If people gather together in these internet social spaces and spend money on virtual things for each other, why wouldn’t they do the same thing for real gifts?

Think about this comparison:

Let’s assume that you sell me a virtual gift at $1 dollar, as a birthday wish for cousin Earl…
The result: You, Earl and I are all somewhat happy with this small gesture.

Now assume that you could sell me a $25 real gift at a 12.5% profit.
The result: Earl gets something real that he can enjoy beyond his computer screen.  I get the satisfaction that comes with providing some true support to Earl.  And you get $3.12 for facilitating the gift-giving.

Now all we need to do is find a fun way to pass out the real gifts in the social networks…. Any ideas?

This idea is rooted in the belief that the internet is a tool that runs without emotion. It is hardware and software, not warmth and compassion. The human element must be combined with these tools in order to create something that is of real value.

A virtual hug is a cheap disappointment, and we want to put human warmth into these social networks that are now connecting us. We want real hugs by real people, and we want REAL gifts not just virtual fluff…

This virtual mumbo jumbo started when developers decided that applications on Facebook and other networks should offer everything for free. They started allowing free virtual hugs and gifts as a replacement for the real thing. We don’t believe that this free stuff is worth a dime, and many are beginning to join our thinking.

Amber Nasland blogs at Altitude, and she added to the “free” discussion in a recent post when she said: “But just because free is everywhere doesn’t mean that free is a given. Nor does it mean that free is always better. (Though I will say I’m all about Free Hug )”

If you did not take the time to watch the video that she posted (I share it again here) then you may have thought that Amber was promoting “virtual-hugging”. But the “Free Hugs” displayed in this short clip involve real people embracing; there is not one virtual hug in the lot!

These real hugs required some investment in resources and emotion, by real people. They were “purchased” by personal effort, not by a quick click of a mouse. Likewise, real gifts speak warmth, thought and love. These can not be replaced by sending someone a silly virtual flower in Facebook…

Real hugs, even among strangers, leave a good impression and are appreciated more deeply because they are created by a human action.

Mitch Joel discussed the problem with not making a personal investment in things during a discussion he titled, The Problem with Free: “When you pay for something, you appreciate it more than when you get it for free”. Then he quoted motivational speaker Mike Lipkin’s favorite onstage line: “I would do this for free, but I am going to make you pay for it so that you appreciate what you’re getting.”

We again state that the only way that supportive gift giving on Facebook works is if a user can buy a REAL gift and then use the social tools to make the gift presentation memorable and engaging.

It is our believe that a virtual party can facilitate this process in a way that will make giving memorable and provide important feedback. It is this tradition of joining together in one purpose that has made real gift giving such a valuable part of personal support.

Freely giving of ones substance results in the same warmth and feeling as a real hug…

You are free to comment.

There is a growing feeling that Facebook and other social properties will begin to join forces with online retailers to sell real products on their networks.
In fact when Catharine Taylor asked thought leaders to consider what is ahead for 2010, John Dudley, an editor at Hampden-Sydney College suggested that “At least one major retailer will develop an e-commerce Facebook app that will replace its entire “traditional” e-commerce Web site.

What does this really mean?
Can it mean that retailers will just increase their efforts by beefing up their fan page or throwing up some additional advertising on the walls?

No.. Mr Dudley is suggesting that e-commerce will move an actual sales channel into Facebook. This effort would require that a retailer build a storefront on the Facebook super highway. With a social network based store, users could stop and shop without leaving the Facebook system. They could use their regular profile, their recognized PayPal account and have UPS deliver the goods to their door. They would find shopping and sharing with distant family and friends a seamless experience.

What type of retailer would take that risk?
We suggest that gift merchants are the perfect group for the move toward an e-commerce/Facebook partnership, and here is why:

* Gift giving among family and friends sends about $115 Billion dollars into cash registers every year, in just the US alone.

* The concept of sharing gifts (virtual, at least) in Facebook is not a new concept, so selling real gifts through this space is not a giant leap.

* Facebook users have demonstrated that they want to stay connected and supportive to even the most distant contacts.

* Established affiliate sales systems provide the framework to track and administer the sales efforts.

Adding to this concept of e-commerce on social networks, a year end discussion on advertising trends suggest that; “Social media will provide a new sales channel for establishing product awareness and commercializing brands to better support traditional advertising or text-based ads”.
The keyword in this statement is the mention of a new sales channel, supported by advertising and other internet based tools. The integration of retail sales and online tools will provide the wise e-commerce pioneers with a head start into this emerging opportunity.

Which e-commerce retailer could take advantage of this emerging trend?
Amazon should be on the list, and so should Ebay. But Wal-Mart or Target could make a big move with this effort as well. Then there is Buy.com, Overstock.com and other 2nd tier online retailers, who might be looking for some differentiation from the big dogs in e-commerce.

It might be interesting to explore the possibility that an e-commerce retailer could use an engaging Facebook application to assist in gathering family and friends together to purchase gifts and share with each other.

We really like this idea…!!!

I was interested in a list published by David Berkowitz in the Social Media Insider. It was titled: Ten Ways Social Media Changed Our Thinking in 2009.
His list includes several trends, but I focused on two that are of particular interest to me…

Gifts and Gaming.

David is the Senior Director of Emerging Media & Innovation at 360i, and he has his hand on the pulse of many growing trends in this space.  His success depends on spotting emerging business concepts, and he has selected Gift Giving and Games for his top 10 list.

David and I agree that these two trends are emerging, but real gifts and traditional games are already merging on social media platforms.  This work is in its infancy, and even David doesn’t really know all that is happening, but the foundations for gift-giving and games as a monetization strategy are being laid.

In the list under Gift-Giving, David discusses the Facebook “Real Gift” application and states; “Today, those goods (gifts) are provided through the Real Gifts application. Tomorrow, it may well be Amazon”.

I am here to say that tomorrow is here now, with the release of a demonstration party called AlbinoPhant.  Each of the real gifts offered in the AlbinoPhant markets are from Amazon.  Today,  any Facebook user can purchase a real gift through Amazon and share it with friends and family using a traditional party game.

Speaking of games:  The post goes on to discuss Games as an exploding social phenomenon and suggests that
“…there’s room for new thinking on what a successful game is”.

The most popular gift-giving game in the real world is the Swap. Gift swap games are used by families and friends to share gifts during important life events . The process to convert successful party games into online social experiences is currently in the demonstration phase. These new online party systems will facilitate the sharing of the real presents in a fun and engaging way that fits within the format of social networks.

Plans are underway to move many more traditional party games into these social networks and to allow families and friends the opportunity to share real gifts with each other, using online merchants like Amazon.

I thank David for his list, and suggest that he is not alone in spotting important trends and advancing the social web.

Thanks to the Burned out Social Worker for the image

For more than a year I have been working hard to build an online party application that will demonstrate the value of giving real gifts through social networks. We are still working on many bugs and finishing several projects so that it will perform as it should. I have many tasks that remain on the to-do list….

But this week all of my grandchildren will be in our home, and I plan to just lie on the floor and let them crawl all over me.
I will probably get drooled upon, find spit-up in my hair, and be exposed to a dirty diaper or two… Nevertheless, I have looked forward to these days since last summer, when we found that all of our five children and their families would be in Oregon for Christmas.

Even though I really want people to receive the benefits of giving real gifts online; and I know that I could move the process forward right now,  I will neglect, at least for a while, this start-up venture and fill my time with some of the true gifts in my life…

These little people are the best gifts from our great family relationships. The seven wiggling, giggling little people have become more precious to me than anything that the Amazon/AlbinoPhant market could ever display.

The happy faces and joyous sounds will push aside any frustrations that I might be experiencing with a development team who is moving slower than I want.

The happy trampling will remove from my thoughts the need to market this new niche for the internet.

These youngsters will be the focus of my time commitments for the end of week, so the business will have to wait. My gift to my 7 grandchildren will be TIME… (grandma has a tree full of regular presents for them)

Chris Brogan discussed his time commitment for this holiday period, and I respect his choice to put in some extra effort while the “iron is hot”. But for me, I will turn it all off and just lay down in the middle of the floor and enjoy some of the gifts that my life has given me.

This party application is an out-growth of our family relationships. It had its beginnings in a game that we have used to keep us closer; so in some ways my decision to spend time being trampled is demonstration of the importance of our party.

It has been five years since our last family gathering, so will take this time to bond with those I love and enjoy the trampling of 14 little feet…

Merry Christmas.

Sometimes we feel like our story if falling on deaf-ears; because the idea is so new and unproven…

But we know it can be done and are just waiting for others to agree.

We would like to thank the Reddit users for their absolute proof that a gift exchange can be organized and completed using internet connections.

Antonio Cangiano’s Blog shares the story:  Antonio writes; “Dan McComas (kickme444 on Reddit) came up with a website to collect sign-ups, and put forward a few ground rules for participants. For instance, to cut down on the number of ill-intentioned users (the so called trolls), only users who were already registered with Reddit before November 10, 2009 were allowed to sign-up for the gift exchange.”

Further TechCrunch reported that this Secret Santa style exchange has demonstrated that almost 4500 internet users can exchange personal details (including shipping information) and share over 5000 gifts with other online users.

Now,  these were not virtual gifts…
The Reddit group shared $160,000 in REAL gifts!
They even earned a Guinness World Record for thier efforts.

OK, people…. WE TOLD YOU THIS COULD BE DONE…!!!

We also  suggested that sharing real gifts and using the images to represent the real thing, would work as well… Again the proof of this vision is in the redditgifts.com photo gallery.

We now have proof that an online gift exchange can be hosted, organized, facilitated, and indeed work in social spaces.

PartyWeDo will continue to promote this opportunity for family and friends to share real gifts online, using a fun and engaging traditional party game.  We are confident that the rest of the world will eventually catch up…

Thank you Dan and your Reddit community for proving our point…