Acceler8 Labs’ Post

The major news last week was that for the first time, Facebook & Instagram app users (initially just some in the US) will be able to check out on Amazon without leaving the social media apps. Tambo’s Managing Director Jake Hewlett explains more. This agreement follows on from Amazon agreeing a multi-year partnership with Pinterest in April this year. Pinterest has already seen a sizeable revenue boost from this integration and clearly investors like the sound of Meta following suit with its share price up 13% and Amazon's up 4% over the past 5 days. On paper this is a partnership that should be a win win for all involved. Here are some of the reasons why: 📱Win for Meta: Ever since Apple's IOS privacy changes in 2021, Meta has been struggling to achieve the same level of accurate user targeting, as it has faced reduced addressability. This partnership should enable them to utilise Amazon shopper data to improve the ad relevancy for the consumer and importantly, drive better results for advertisers. Additionally, as this is an integration between two walled gardens, it won't breach data privacy requirements, offering a very smart solution to the tracking challenges posed by Apple's changes. As TikTok also continues to ramp up it's own social commerce offering, this is a very timely agreement which will enable Meta to more than hold it's own in this fast-growing space. 🛒Win for Amazon: With Amazon continuing to accelerate product development around clean rooms, this looks like a brilliant play. Its own AWS clean room solution will be able to offer (we assume) data collaboration between Amazon shopper data and Meta's advertising user data, significantly boosting addressability & personalisation benefits for advertisers and publishers alike. Of course, it should also result in a major boost to its sales revenue too. 🛍️Win for the Consumer: Seamless integration between Instagram, Facebook & Amazon offering a far smoother in-app shopping experience. It should also ensure advertising is more relevant for the shopper too, all whilst ensuring the privacy of the user is protected. 🎯Win (we hope) for the Advertiser: More relevant advertising on Meta AND on Amazon, as we envisage that the data sharing will benefit advertising relevancy for both advertising platforms. The only watch out is whether this cannibalises traffic to the brands' own DTC, as more shoppers choose to go direct to Amazon rather than to the brands' own website. Tambo will be investigating this over the coming weeks to understand how we can advise our clients on how best to prepare for this integration rolling out more broadly & help ensure they are able to leverage its benefits.

Pinterest focuses on a low friction buying experience for consumers to get a bigger bite of the social commerce pie. As per a study by PYMNTS, only 1.1% of consumers made purchases on Pinterest, below the 2.6% that did so on TikTok, 3.4% on YouTube, 4.6% on Instagram and 7.3% on Facebook. It's noteworthy to remember Amazon's shoppable content deal with Pinterest in early 2023, and with Snap Inc. and Meta in late 2023. I'm interested in learning the newer developments and partnerships in this space and how it moulds the future of commerce. https://lnkd.in/gu94aFsx #digicom #ecommerce #socialcommerce #socialmediamarketing #digitalcommerce

Social networks and ecom marketplaces are typically siloed ecosystems, optimized to drive users and ads dollars to their own platforms or apps. That's why, although not getting huge coverage via mainstream media, Amazon partnering with Facebook and Instagram is big news. Its also a very interesting strategic move considering Facebook's investment in their own 'Shops' marketplace, and the highly publicized launch of TikTok Shop. #brandprotection #amazonagency #buybox #d2cbrands https://lnkd.in/gf5GQYb6

🛍️ TikTok's latest move into e-commerce could be a game-changer or a risky play. With its new feature for shopping, is TikTok transforming into a virtual department store? Let's explore this pivot. 👇🏻 📲 Product Identification Feature: TikTok is trialing a feature to automatically identify products in videos, linking users to similar items for sale. Big Sales Targets: Aiming for $17.5 billion in US sales by 2024, TikTok is betting big on e-commerce over traditional social media advertising. Livestreaming E-Commerce: Following a QVC-style model, TikTok plans to build livestreaming facilities across the US for product selling. User Growth Concerns: There's a slowdown in user growth, and the new shopping feature, criticized for promoting low-quality and counterfeit items, might be a contributing factor. Instagram’s Lesson: Instagram previously retracted its Shop tab after user backlash. Could TikTok be heading towards a similar scenario? 🔍 TikTok's e-commerce strategy underscores a bold shift in social media platforms' roles. While it opens new revenue avenues, it also risks alienating users. The big question remains: will users embrace shopping as much as scrolling? 💬 What do you think about TikTok's e-commerce pivot? Is it a smart integration or a step too far? Share your views in the comments below! #TikTok #EcommerceStrategy #SocialMediaEvolution #DigitalMarketing #UserExperience

While TikTok was fined €345m for breaking EU data law on children’s accounts, they did launch TikTok Shop (2) and there are plenty of signs this might be working out for them (3). Meta, Pinterest, and many other social networks tried to break into #socialcommerce with very limited success and remain focused on advertising (1). For example, Pinterest teamed up with Amazon in this space (4). Why should Tiktok be more successful than its competitors? What are they doing differently? Leave your thoughts in the comments below because I'm really, really curious about this one. #ecommerce #social #userexperience (1) https://lnkd.in/efMFheRD (2) https://lnkd.in/ednhB-4G (3) https://lnkd.in/edya7x8R (4) https://lnkd.in/earv6Cih

ICYMI: Last Week, Meta and Amazon Joined Forces for a Game-Changing In-App Shopping Experience on Facebook and Instagram! This collaboration is poised to redefine the landscape of paid advertising, offering advertisers and businesses a unique opportunity to connect with consumers seamlessly within the social media environment. With the integration of Amazon's extensive e-commerce capabilities into Meta's platforms, users can now discover, browse, and purchase products without ever leaving the app. Here are a few key takeaways and potential impacts on paid advertising: 1️⃣ Enhanced User Experience: The new in-app shopping feature creates a frictionless experience for users, making it more likely for them to engage with ads and make purchases directly within the social media ecosystem. 2️⃣ Increased Conversion Rates: Advertisers can capitalize on the convenience factor, leading to higher conversion rates as users can seamlessly transition from discovery to purchase in a matter of clicks. 3️⃣ Richer Ad Formats: This partnership opens up possibilities for more immersive and interactive ad formats, allowing advertisers to showcase their products in creative ways that align with the in-app shopping experience. 4️⃣ Data-Driven Targeting: Meta's robust targeting capabilities combined with Amazon's vast customer data create a powerhouse for advertisers to reach their target audience with precision and relevance. 5️⃣ Elevated ROI: Businesses can expect a potentially higher return on investment as the synergy between Meta and Amazon provides a streamlined path for turning ad engagement into actual sales. Exciting times lie ahead for the advertising industry, and I'm eager to see how this collaboration unfolds. How do you think this partnership will impact your approach to paid advertising? Share your thoughts below! 👇 Check out the details here: https://lnkd.in/gU2gM_Eu #DigitalMarketing #AdvertisingInnovation #Meta #Amazon #SocialCommerce #MarketingTrends #Facebook #Instagram

TikTok has been trying to convince advertisers to use Shop by making big claims that it will drive sales and by offering cheaper fees vs. Amazon. According to this Insider article from @Lauren Johnson, a technology executive said that TikTok is offering sellers 2% fees compared to Amazon's 15% fees. That's a pretty remarkable difference. I've spoken to brands and some of the hesitation ties back to not having the time and bandwidth for another thing that may only lead to minimal revenue gains, especially with how tight a ship brands are required to run this year. If big retailers and brand DTC are the bulk of the volume, TikTok will need to drive more than a percentage or two of increased revenue for it to get the attention it's going to require in tech and retailer integrations. My money is still on TikTok to figure social commerce out. They have been quicker to implement integrations than others, willing to test features and models, and are clearly making it a top priority for the company. I think it's going to be some time before we see the bigger retailers and brands capitalizing in a meaningful way, but the long tail challenger and DTC brands will have the ability to extract value quickly. Also interesting to see Sandi Hawkins leaving TikTok and being replaced by two retail veterans in Nicolas Le Bourgeois and Marni Levine. Commerce is going to be a hot topic to watch in the coming months. #socialcommerce #socialmedia #tiktokmarketing #creatoreconomy https://lnkd.in/gt4KNmdX

TikTok Shop's leap into e-commerce, as experienced by John Herrman, signals a seismic shift in digital marketing. 🚀📊 Selling a simple pencil turned into a surprising social experiment, showcasing TikTok's potential as a formidable e-commerce platform. This blend of social media and retail presents unique challenges and opportunities for marketers. Is this a game-changer for digital strategies? 🌐💡 #digitalinnovation #ecommerceevolution #tiktokmarketing