SMO/SMM – The new affiliate marketing tool for e-tailers

What is SMO?

As defined by Rohit Bhargava who coined the phrase in 2006:

“implement changes to optimize a site to be more easily linked to, more highly visible in social media searches on custom search engines, and more frequently included in relevant posts on blogs, podcasts and vlogs.”

This definition still holds, but the ability to enable SMO is easier. Buttons for twitter, facebook, etc making content easily sharable, and formats which are easily portable between sites (with sites themselves enabling multiple formats including video). This creates a more fluid culture of information sharing and a better way to potentially achieve virality & syndication with out alot of SEO gaming. Let the power of the crowd drive your message, content, product, etc to the masses. SEO/SEM is becoming second stage to SMO/SMM now.

Lets run some numbers,

Twitter – (statistics)

Users: 105 million users (as of 2010 -probably 150m now) and 180m uniques per month, and 75% of it comes from outside third party applications.

Demographics: And according to the huffington post women tweet 12% more than men. According to most shopping sites (like shop.com) women are the primary shoppers in the US.

Facebook – (straight from their site)

Users: More than 500 million active users, 50% of active users log on to Facebook in any given day, Average user has 130 friends.
Over 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each month and 10k websites are integrated each day. (Last update April 2010 – # users is at 600m today)

Demographics: 55%+ of users on facebook (US) are women, and the most traffic is from women on facebook.


With over 700m people using twitter and facebook, and over 35B events occurring on just these two sites (55%+ women), its hard to ignore the value proposition for e-tailers everywhere.

SMO/SMM and e-commerce

E-tailers need to start focusing on marketing into these two mediums (and others) with everything from pure ads, special discounts/campaigns, loyalty programs, and closing a purchase.

Most e-tailers only syndicate across multiple affiliate locations comparison shopping engines, blogs, shopping directories, affilitate networks, etc. Most are not addressing the combination of product syndication and SMO/SMM as a one stop powerful tool. Sites like onestopfeed are enabling e-tailers to take advantage of this growing trend and maximize sales.

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E-commerce consolidation or explosion in 2011?

Lots of changes happening in the e-commerce world. First of all, Yahoo!shopping, the most widely used comparison shopping engine is dropping from the race. Officially released on Jan 11, yahoo is going to enter into a “strategic partnership” with pricegrabber. PriceGrabber will handle all the product listings, effectively translating into pricegrabber managing Yahoo! Shopping Web Services API, including Shopping Results. Search will still be back-ended by Bing, and Ads via Yahoo!. Pricegrabber’s ads will obviously be run by Yahoo!.

But again why Pricegrabber? It owns the smallest percentage of the market.

Yahoo!, is obviously leveraging its size and getting  large cut of revenues, while it cuts operations. Complete bean counter move to make the balance sheet look better. Its been the modus operandi for the last few years. Big kudos to Pricegrabber.

Is this the beginning of consolidation? No, in reality its just the first of potential many “shifts” away from traditional e-commerce channel marketing. I am sure Yahoo! has realized that even though e-commerce is growing, the ability for them to control larger portions of the pie will shrink.

What is causing this? Social media (facebook).

Amazon’s properties, soap.com and diapers.com (obtained via the Quidsi acquisition) have set up shop on facebook to leverage the power of the social web. With close to 60,000 fans on facebook, and growing, it will truly increase the value of the facebook “obsession”.

Social media is truly changing our lives, but it isn’t going to be just facebook as a channel. As Ravit Lichtenberg points out in her blog, more dynamic, engaging, targeted communities created through platforms like Disapora, Path, and Looppa will drive new ways in which people leverage relationships. These relationships will drive how we think about, find, and buy products as consumers.

Engines and services to enable retailers to leverage this shift is key.  It points to the need for a new mechanism to distribute, market, and sell products. Facebook, and potentially other social media sites (even twitter) are opening up new avenues for retailers to distribute, market, and sell products. Existing sites like singlefeed, versafeed, feedperfect, and others, are not designed to me optimized for this “shift”, while other sites like OneStopFeed are leading the charge.

OneStopFeed enables not only traditional channels like theFind, google, bing, nextag, etc, but also leverages marketing into newer untapped channels via facebook, twitter, etc enabling retailers to manage the explosion in e-commerce which is about to happen.

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