File this under "huh?"
JupiterResearch released a report this week (
press release here) that essentially says online communities (including social networks) have little effect on influencing online sales.
It seems unlikely that this would be the case. A more likely scenario is that the study was unable to specifically attribute influence back to communities, which does not necessarily mean that there is actually "little influence".
From the press release promoting the report:
The effectiveness of social and community sites, like MySpace, in driving retail sales is still emerging. Because 53 percent of online shoppers go directly to the retailer website while they are shopping, in contrast to the only three percent utilizing blogs, it’s clear online shoppers continue to seek out direct access to locations where they can purchase a product or the source of that product when researching and purchasing both online and off-line.
Sure, it makes sense that you would actually buy a product from a web site that is actually selling it. Most bloggers I know aren't a consumer goods storefronts. I'm not sure what the point is about "only 3% using blogs". Also, I think one component of influence that may have been missed here is the role of communities on consumer good awareness.
“From a branding and advertising perspective, social and community sites are garnering a great deal of influence online,” explained Patti Freeman Evans, Senior Analyst with JupiterResearch. “But when researching a product online, shoppers are looking for fundamental information, not entertainment or social interaction. In the end, the consumer is still interested in convenience and efficiency and social and community sites are just not that efficient.”
I'm puzzled by this statement. I would hazard a guess that the majority of product reviews online are from a "community" source, whether it be member reviews at Amazon or more informal reviews from enthusiast communities, like automotive message boards. Most people I know start with online reviews when researching a purchase.
I was really interested to see the results of this study, but the content offered as a teaser in the press release is not inspiring me to rush right out and read the full report.