Market research firm Compete has released a report on the convergence of social networking and e-commerce, and in the process has tried to coin a new buzzword: “social commerce,” or s-commerce for short.
The report, “s-commerce: beyond MySpace and YouTube,” finds consumer visits to social networking sites have increased 109 percent since January 2004, and page views per visitor have grown by 414 percent in the same time period. "Social networkers” spend less time viewing traditional media and have more discretionary income and agreater penchant for online shopping than non-social networking site users.
Marketers having the most success with s-commerce are using a combination of branded micro-sites, customer reviews, forums, peer-to-peer transactions, product blogs and user-generated content projects, according to Compete.
Marketers may be involved but this space is the domain of PR but because launching a branded social network means competing for a dwindling slice of end users' attention, there is a need for the conversation to be lively and engaged.
Its about building relationships stupid.