It's a very Facebook Christmas: Retailers lean heavily on social sites

Paul J. Richards / AFP - Getty Images

Black Friday shoppers check out a laptop for sale at a Best Buy store in Fairfax, Va. Big retailers increasingly are trying to reach customers via Facebook, Twitter and other social media.

Elves are so 20th century. This holiday season, retailers are turning to Facebook, Twitter and other social websites to help gift-givers find and deliver the perfect present.  

Big retailers including Macy's, Wal-Mart and Best Buy publicized their Black Friday deals early to their Facebook fans. Target, Amazon and Toys R Us ran contests, giveaways or flash sales to coax consumers into "liking" their brands. Hardware chain Lowe's ran an "American Idol"-style promotion in which fans voted on items to be discounted. Best Buy created an event page for Black Friday and got nearly 28,000 people to RSVP as "attending."

"There's so much going on," says Alison Lipson, senior retail and apparel analyst at market research firm Mintel. "For a lot of retailers, the incentive is that fans will get some exclusive information or content like a preview of the Black Friday ad or an opportunity to win a gift card."

According to shopping site Nextag, 5 percent of all Black Friday shopping took place via Facebook. Social shopping offers companies one big advantage over websites and e-mail marketing: It confers "trust and persuasion of a friend," said Andrew Lipsman, vice president of marketing at research company comScore.

"If you think about the media environment today, there are so many messages," he said. "Any message that gives you an extra reason to pay attention is really important."

"These last few years have been the toughest time for retail in a generation," said David Stone, CEO and cofounder of CashStar, which provides technology behind digital gift certificates. "Facebook is a social channel where people connect and talk, and this is a real bright spot for retailers this year."

Stone said about two dozen of his company's retail clients, including Groupon, let customers send e-gifts to the Facebook wall of a friend. 

Lipsman calls this a canny use of social media's ripple effect.

A gift certificate sent via e-mail is seen only by the recipient, he points out. One sent to a Facebook wall, on the other hand, can be seen by a potentially wide circle of friends.

"You need to think about the viral impact," he said. In a study of Facebook fans of Target, Wal-Mart and Best Buy, comScore found that Facebook fans spent 40 to 50 percent more time in the stores than non-fans, and friends of fans spent an average of 20 percent more time than non-fans.

Facebook gifting also appeals to impulse shoppers and procrastinators.

Facebook gift cards show up on the recipient's wall within minutes, said Bradford Robinson, gift card marketing manager for Chili’s Grill & Bar, who notes that 40 percent of gift card sales occur between Thanksgiving and Christmas.

While Facebookis the most important social site for retailers, a few are playing around with other platforms. J.C. Penney used Foursquare in its Black Friday push, pledging to donate $25 to the Salvation Army each time someone "checked in" to its stores Friday morning. Target and AT&T used Twitter to promote their holiday sales.

"I think the actual information and promotions on Facebook are more geared toward the consumer. I think they're using Twitter as more of a communication medium," said Mintel's Lipsom. 

Walgreens used Twitter to promote its mobile app, which will send coupons to the smartphones of people who download it. Disney Store rolled out an interactive Twitter campaign that included a Twitter "concierge." Users can send a tweet asking holiday shopping-related questions using the hashtag #FairyGodmother.

"This is the first year we've done it," said Paul Gainer, senior vice president at Disney Store North America. He said Disney Store has a "small team" tasked with answering customer tweets within half an hour. So far, they've given advice on queries ranging from what to get a five-year-old in the $30 price range to the best place to park at a particular mall in order to enter near the store's location.

"The great thing about it is the questions could be anything," he said. "It's kind of kept us on our toes." 

The other breakout star of this year's digital holiday shopping experience is the tablet computer. Companies are investing in tablet-specific mobile apps designed to make digital catalog shopping more exciting by making use of a tablet's bigger screen and touchscreen functionality. "Retailers are really rethinking the way iPads need to be considered," said Lipson. "Instead of scrolling through pages, it's more of an interactive view." 

While only a small percentage of consumers today own tablets, companies including clothing retailer Anthropologie and Disney Store have launched iPad apps designed to capture these potential customers. "We've seen really good response in utilizing the iPad as a shopping medium," Gainer said. Between Thanksgiving and Black Friday morning, he added, roughly 5 percent of sales were coming from mobile devices, primarily iPads. 

Discuss this post

So what we have here is a "social" network that does nothing but sell advertising.... great... China builds bridges.... we build software for Facebook..... now you know why our country is in the toilet!

  • 8 votes
Reply#1 - Tue Nov 29, 2011 1:00 PM EST

I did all of my black Friday shopping without a Facebook account, I don't know how I managed to do it!

OH ya just like last year and the year before and the years before facebook even existed, I used the black Friday websites and of course the newspaper!

    #1.1 - Tue Nov 29, 2011 4:24 PM EST

    Software is bad? You're commenting on a story, using software, in a very facebook-ish manner.

      #1.2 - Tue Nov 29, 2011 9:05 PM EST
      Reply

      Which is a shame as so many of us office drones cant access social media

        Reply#2 - Tue Nov 29, 2011 1:22 PM EST

        The nerve of your employer wanting you to do actual work during the work day!

        • 3 votes
        #2.1 - Tue Nov 29, 2011 2:25 PM EST

        Amen...

          #2.2 - Tue Nov 29, 2011 8:45 PM EST
          Reply

          Retailers want to 'friend' your bank account.

          • 7 votes
          Reply#3 - Tue Nov 29, 2011 1:41 PM EST

          And of course it makes no sense because Google *owns* the online ad space. Facebook actually makes the majority of its revenues by selling online nick nacks or charging the people who are (i.e. farmville).

            Reply#4 - Tue Nov 29, 2011 1:42 PM EST

            I bet the majority of you who have commented don't even use face book.

            This is a free service in which the people who use it are the product.

            If you don't like it, sign off.

            • 2 votes
            Reply#5 - Tue Nov 29, 2011 1:45 PM EST

            And I bet you have a wet mattress and a pocket protector....

            • 2 votes
            #5.1 - Tue Nov 29, 2011 1:50 PM EST

            For the most part I did, but Facebook keeps dinging my email to come back ... please?, like my being away somehow injures a giant bundle of organized ones and zeroes (mostly zeros).

              #5.2 - Tue Nov 29, 2011 2:02 PM EST

              My junk email box can reflect whether I'm a Facebooker or not. I closed my Facebook and all the junk mail stopped. I signed back in (damn my family!) and my junk box is full again. Closed for good.

              It's sorta a free service. Time is money honey. They wants lots of my time, to advertise to.

              • 3 votes
              #5.3 - Tue Nov 29, 2011 3:44 PM EST

              great comment keep it cool!

                #5.4 - Tue Nov 29, 2011 3:48 PM EST
                Reply

                It's a perfect consumer target. The majority who use these sites are among the dumbest & most easily to be manipulated. (and apparently have too much disposable income or just piss away money they don't have to begin with.)

                  Reply#6 - Tue Nov 29, 2011 1:49 PM EST

                  I think it's a big mistake to rely on social media. I mean, how much money will teenagers be spending?

                  • 1 vote
                  Reply#7 - Tue Nov 29, 2011 1:51 PM EST

                  A bunch as it's not really their money is it?

                  • 1 vote
                  #7.1 - Tue Nov 29, 2011 2:03 PM EST

                  Do you know how many professionals and stay at home mom's and company's are on FB...millions! They will spend a ton and buy for the teens and tweens! Major fortune 500 companies are now on FB, as is government, non-profit and religion affiliations.

                  • 1 vote
                  #7.2 - Tue Nov 29, 2011 2:55 PM EST

                  There are more adults on FB than teens.

                    #7.3 - Tue Nov 29, 2011 10:23 PM EST
                    Reply

                    Rude, Crude, and Socially Unacceptable

                    • 1 vote
                    Reply#8 - Tue Nov 29, 2011 2:31 PM EST

                    You rang?

                    • 3 votes
                    #8.1 - Tue Nov 29, 2011 3:12 PM EST
                    Reply

                    $100 billion valuation for Facebook? No wonder corporate America is drooling over them.

                      Reply#9 - Tue Nov 29, 2011 2:48 PM EST

                      All I can say is that these retailers won't be getting my money. Facebook sucks.

                      How much more privacy are we going to be willing to give up? GPS (which I admit I use), EZ-Pass, Facebook, online "surveys" - all are (or can be) used to track our locations, activities, and movements.

                      Big Brother may be watching, but let's not make it any easier for the sons of bitches.

                      • 5 votes
                      Reply#10 - Tue Nov 29, 2011 3:07 PM EST

                      social networks are a joke. they take away the personal touch. they donot protect your info. look at how many times Facebook has been "broken"

                      people who use these sites need to get a life, and depend less on fictional people and their lives.

                      read what Stonecold-363654 comment says

                      • 4 votes
                      Reply#11 - Tue Nov 29, 2011 3:24 PM EST

                      A close friend of my wife was beaten to death by somebody who didn't like what she posted on FB. The guy who did it is doing 25 years. While I realize this was not FB's fault, how stupid can you be to post something where everybody can see it.

                        #11.1 - Tue Nov 29, 2011 4:14 PM EST

                        how stupid can you be to post something where everybody can see it.

                        Actually, on my facebook page, only my friends see what I post. Unlike here, where everyone who reads the comments will see everything that everyone wrote. Including your last post. "how stupid can you be to post something where everybody can see it?" I don't know, you tell me.

                          #11.2 - Tue Nov 29, 2011 9:08 PM EST
                          Reply

                          I don't and won't do Facebook.

                          Just a site for narcissistic people with too much time on their hands.

                          • 2 votes
                          Reply#12 - Tue Nov 29, 2011 3:24 PM EST

                          It is now. Didn't start that way. They never do. Myspace was neat at first. Seeing old friends, catching up with family pictures, etc. etc. Suddenly, kids are self picturing in toilets and showing off their bellies.. blinging and blanging that and killing RAM speeds for everyone.

                          Facebook came along with it's rigid formatting and almost mundane site... until...

                          self portaits in toilets

                          belly shots

                          farmville.. which led to mafiaville, stonerville, shoppingville, bimboville et al.

                          then my grandmother logged on...

                          I got a virus from a "special offer" linked from their site

                          my boss uses it to recruit really bad employees...

                          someone answered a question about me.. and hurt my feelings with the trutch.. once I unlocked it.

                          and then farmville.. et al

                          • 3 votes
                          #12.1 - Tue Nov 29, 2011 3:53 PM EST

                          "killing RAM speeds for everyone."

                          um, what?

                            #12.2 - Tue Nov 29, 2011 10:25 PM EST
                            Reply

                            i agree with the majority of comments 'ive read so. i don't and won't either. what a waste of time.

                              Reply#13 - Tue Nov 29, 2011 3:39 PM EST

                              Personally, I use Facebook to connect with old friends. When it comes to shopping, or ads on Facebook, I don't even notice them. I much rather go to Google and search for a product I'm buying along with doing some research first. Facebook, is a complete waste of time for shopping but cool to connect with old friends.

                              Google it. Research. Buy.

                              • 2 votes
                              Reply#14 - Tue Nov 29, 2011 3:45 PM EST

                              I thought that about Facebook too - cool to catch up with old friends. Then I remembered why they were "old freinds".

                              • 1 vote
                              #14.1 - Tue Nov 29, 2011 5:36 PM EST
                              Reply

                              Never use facebook. Wished they had never come out with it! Waste of time.

                              • 2 votes
                              Reply#15 - Tue Nov 29, 2011 4:54 PM EST

                              Gee, could facebook be the number of the beast talked about in revelations - you know, the one where if you don't have it, you will be unable to live in society? Wow, next prophecy to come true is in 2012

                                Reply#16 - Tue Nov 29, 2011 5:36 PM EST

                                I lost interest in Twitter when it starting getting commercialized.

                                But what can I expect from a free service? Somebody has to pay for it.

                                Gmail, Facebook, Twitter, Hulu, Pandora... none of these things are really free.

                                If it doesn't have a monetary cost, usually you have to view ads.

                                Which is why I still refuse to get cable tv. If I'm paying for it, it damn well better not have any commercials. That's like charging double.

                                • 2 votes
                                Reply#17 - Tue Nov 29, 2011 5:46 PM EST

                                At least I don't have to worry about being bombarded with those ads.

                                  Reply#18 - Tue Nov 29, 2011 5:49 PM EST

                                  I bought one of my sons a pair of jeans and I bought a quart of paint today. The purchases have nothing to do with Black Friday, Blacker Saturday or Cyber Black Monday. I was just being nice and bought the jeans and the paint is for a home project I put off for two years. Has nothing to do with Christmas or Hannakuh. I actually quit celebrating Christmas. No tree in this house.

                                  • 2 votes
                                  Reply#19 - Tue Nov 29, 2011 5:59 PM EST

                                  The last thing Christmas is about anymore is Christmas. It's this nebulous and ever expanding period of time (like Summer) that contains events like Black Friday and Cyber Monday where people focus on smart phones, tablets and 42" televisions. Somebody will soon figure out a way sell sponsorship, "Christmas presented by Walmart". It will become a 2, 3 or more day event, and eventually, the word Christmas will disappear altogether.

                                    #19.1 - Tue Nov 29, 2011 10:56 PM EST
                                    Reply
                                    Celeste Prestonvia FacebookDeleted
                                    ZungFOoDeleted

                                    These corporations only socialise for one reason. Your money. Get off my page.

                                    • 1 vote
                                    Reply#22 - Tue Nov 29, 2011 11:21 PM EST

                                    i will not buy anything from a facebook ad because ads are getting out of control. they are everywhere.

                                      Reply#23 - Tue Nov 29, 2011 11:59 PM EST

                                      Facebook must be bribing everyone. I am sick of websites requiring me to "sign in to my facebook account". Pretty presumptive I'd say. I don't deal with any site that says that at all. I don't have nor will I ever have a FB account.

                                        Reply#24 - Wed Nov 30, 2011 4:21 AM EST

                                        We see a huge daily growth of merchants, entering the Facebook commerce arena everyday.There's no doubt that F-commerce is the next step in the e-Commerce evolution!If you wish to open a Facebook storefront for Free visit:

                                          Reply#25 - Wed Nov 30, 2011 9:31 AM EST

                                          Interesting read for my coworkers...

                                            Reply#26 - Thu Dec 1, 2011 8:43 AM EST
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