ECommerce, Facebook and the Future of Marketing

          ECommerce is an emerging trend on the Internet, which allows users to exchange goods without the barriers of time and distance.  Recently, Facebook has put a plan into action to utilize this feature by testing out a new mobile payment feature on its website.  Although this announcement does not mean that this social media site will be fully immersed in Ecommerce, it is definitely a significant step in that direction.  According to Facebook spokesperson Tera Randall, the goal of new test is to simply, “test how we can help our app partners provide a simpler commerce experience.”  These “app partners” of which she speaks are an essential aspect of social media in general; providing the opportunity for money to be made by companies utilizing Facebook’s (and other sites) massive following.  During the test itself, personal information that has been provided by Facebook users will automatically be filled in when making purchases from mobile applications. Facebook's new development is explained in this article.

            The most important takeaway of this article is not in the test itself, but instead the future implications that which it could hold.  Should Facebook actually launch the payment feature, it would enable the site to track the numbers of purchases from specific partner sites.  This would provide valuable data, and evidence of just how great of a marketing impact that Facebook can provide.  This site aims to be a location that which ecommerce transactions occur frequently, and in doing so becomes a pioneer for social media in general to become involved in ecommerce.  This shift may not occur without friction, however, as many are wary of how willing people will be to provide secure financial information to a social media website.

             Should a shift occur that brings significant ecommerce to the sphere of social media, it would mean that businesses would need to dramatically alter their marketing strategies and business models.  Limited transactions already do take place on social media, and the effects have already been massive (i.e. Farmville).  Due to the extensive amount of people involved with social media (over 1 billion on Facebook) and the ease of which they can communicate with eachother, social media would become a primary, if not the primary, target for marketing in general.  If a person could simple log onto Facebook and get their shopping done through various apps and experience a smooth transactional experience, there would be little reason to shop in other locations.  Marketers and managers should pay close attention to this story, as its outcome will have very significant implications.

mHealth App Marketing: A Profitable Future

          According to a recent study, over one fourth of all app users are currently using a health related app quite regularly.  The relatively new field of mHealth is classified as practicing medicine and public health with the support of mobile devices.  There is great variety within this category, however, with the top selling apps serving a diverse array of needs and functions. For example, the app “Calorie Counter and Diet Tracker” quite obviously aids in weight-loss and healthy eating and “Stress Check” measures the user’s stress levels and gives corresponding advice by the placement of a finger on the camera lens.  Even more examples of popular mHealth apps include those that help locate medical professionals in your area, and track your weekly workouts.

            In total, the world’s mHealth market is worth approximately $6.6 billion.  This upward trend is increasing exponentially as well, drawing predictions of a total market upwards of $20 billion by 2018.  It was estimated that in 2013, the US Healthcare and social assistance industry would spend $265 million on mobile marketing, increasing to $539 million in 2015; two very significant sums.  Perhaps the most important statistic, however, is the trust that users are placing in these apps.  According to a recent study, over two thirds of mobile health app users believed that they had a significant impact on their health.  This new development is accurately explained in this blog post.

              In his book, Influence: The Psychology of Persuasion, Robert Cialdini discusses the power that authority has on a person’s responses.  He writes, “Information from a recognized authority can provide us a valuable shortcut for deciding how to act in a situation”. (For more information on Cialdini, check out his website here) The healthcare industry has an undeniable advantage in this area, as perhaps no other industry requires consumers to trust professionals that this one.  When it comes to a person’s health, they patients are placing trust in doctors regarding their entire livelihood, and it is clear from the statistic mentioned earlier that users trust their apps as well.  If companies are able to maintain their authoritative images by using recognizable brands, doctor recommendations, as well as endorsements from certifiable professionals, consumers will be much more likely to not only purchase the app, but consistently use it and follow its directions carefully.  A classic example of this situation is characterized in an experiment conducted by Stanley Milgram.  In this experiment, average citizens were instructed to give potentially lethal shocks to other citizens by a man in a lab coat.  Most of the subjects complied, merely because they recognized the man in the coat as a figure of authority.  Marketers must maintain their company’s status as a figure of authority, but for a much less sinister reason.  This authority is what will enable them to have the continued attention of the users for a long period of time, providing a great marketing opportunity.

            The emergence of mHealth can also potentially restructure the healthcare industry altogether.  Businesses must pay close attention to this trend, as more focus will be needed to be placed on online presence, as many people are using apps to locate healthcare professionals.  They must utilize search engine optimization in order to do this.  Also, those in the personal training and fitness industry must take care to not lose business to mobile apps that give work out routines.  These professionals must emphasize the importance of face-to-face contact in their industry.  Finally, the healthcare industry now has the possibility of running much more smoothly, with the mass exchange of information through mHealth capabilities.

Initial Thoughts, Current Events: Google Glass

          In my indrotuctory post for this blog, I wanted to address a current event in the world of digital marketing.  It is my believe that Google's new product, Google Glass (if properly applied) can change the landscape of the marketing world.  This new product could potentially have effects so profound, that marketers will have to restructure their strategies entirely in order to achieve maximum effectiveness.

            When word of Google’s “Project Glass” began to spread in 2012, initial reactions were simple amazement regarding the technological brilliance and futuristic essence of the invention.  Google Glass is, in essence, a personal computer that is worn on the user’s face, and has capabilities such as picture, video, sharing and information.  After the initial shock wore off, however, more practical analyses surfaced, including how the innovation could potentially impact marketing and advertising.    A few months ago, Google was granted a patent, which applied for back in 2011, for eye tracking advertising technology, often referred to as “gaze” tracking technique.  In this technique, the eyes would be tracked any time they looked at an advertisement.  This information would then be sent back to a server, and payments would be made on any of a number of diverse dimensions.  For instance, payments could be determined by whether or not the person looked directly at an ad, the length of time they looked, or even the emotional state elicited by the ad, which could me measured by the person’s pupil response.  Additional information about Google Glass can be viewed here.

            However, the utilization of eye tracking systems by marketers is not a new concept.  It has been frequently used by marketers in closed experiments and studies, but has been generally considered to be too expensive and intrusive to become a full-fledged, mainstream technique.  For instance, one company used eye-tracking techniques to measure the interest level of various children throughout an episode of “Sesame Street” (Blink- Malcolm Gladwell).  The possibility of the existence of Google Glass, however, tackles these obstacles and makes eye tracking advertising an appealing prospective. To prevent feelings of users being unwilling victims of an experiment, Google is ensuring that all users will be completely anonymous.  This new and exciting innovation can be viewed properly on the Google website here, and an interesting video can also be viewed for your educational curiosity.

           Should products such as Google Glass take off, eye tracking advertising technology will yield several important managerial and marketing implications.  Since these glasses would be able to track eye movements responding to ads on a screen and in real life, perhaps a shift would occur that would refocus advertising into the actual, not virtual, world.  Ads such as billboards and posters could be monitored for effectiveness as never before, and would undoubtedly lead to more inventive techniques beyond what we have currently seen.  Perhaps our cities and suburbs would become overloaded with advertisements competing for our attention, similar to how the Internet has already followed this trend.

          User input will be a reoccurring theme of this blog, and all opinions are encouraged.  What sort of impact, both general and marketing specific do you believe that the Google Glass will have? Do you think this invention will catch on at all?