Strategic analysis
Where Are People Really on Facebook?

Social Commerce is not happening on your brand page

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Written by Thomas Baekdal on July 26, 2011

Tell me if you have heard this before. "We should open a Facebook shop because there are 750 million people there!" A lot of companies have already done it. Even more startups are building system for creating shops, landing pages, catalogs and whatever else you can think of on Facebook.

There is just one vital question they forgot to ask ..."Where are people exactly on Facebook?"

I'm covering this question in much more detail in my book about social commerce, but I want to give you a few extra examples of why brands doesn't see a good return on investment with a Facebook shop.

We all know that Facebook is hugely popular, and that the activity there is immense. We also know that, when done right, the social effect can have a huge impact on your business.

I wrote an example of this a while back. I looked at engagement rates for one of Europe's largest fashion brands. Their official Facebook page isn't really doing anything for them, while their local Facebook pages is making a big difference.

The problem is that brands use Facebook the wrong way. They place their content and activities in the wrong places. They listen to social media "experts", who will tell you to create a landing tap, to build campaigns in tabs, and to setup a shop in a Facebook tap.

None of those things are wrong, per se, but that is not where people are. So, where are they? Let's start off with a survey.

Pageviews / impressions

Social analytics company PageLever came out with a study earlier this month containing very interesting numbers.

There are a number of things going on here. First of all, you will probably notice how low the numbers are. Many think that if they have 10,000 fans, they are also reaching 10,000 people. That is just not true. In fact, if measured per day, you only reach between 3-7% of your total audience.

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