Consumer recommendations are one of the most credible forms of advertising because people trust people. Peer to peer recommendations and word of mouth have long been recognised as powerful marketing tools. While online, most companies rely heavily on search ranking to drive traffic and awareness, social content in e-commerce is the merger of these two ideas and represents an incredibly important area for any online retailer to consider.

According to a Forrester study, 71% of online shoppers read reviews, (http://www.ratepoint.com/resources/industrystats.html) making it the most widely read form of consumer-generated content. Additionally, a separate study by Coremetrics (http://www.bazaarvoice.com/resources/stats) found that people who read a review were 30% more likely to purchase a product and visitors who wrote a review were 80% more likely to convert.

Likewise, recommendation engines like Amazon (‘people who bought this product also bought that product’) go a long way to mirroring the retail experience and assisting in driving cross sell and upsell behaviour. When recommendation engines go social however, like LastFM (‘people who like similar things to you also like this’) it really starts to feel even more relevant and personalised bringing an offline experience truly online.

When Google announced their transition to real-time search this catapulted the importance of social media in the search game too. Real-time data is now placed above traditional web search results and as a result, it makes it even easier for a consumer who is purchasing a product to review social content that they may previously have had to work a lot harder to find.

The impact of the social content on sales is undeniable.

Social media has rapidly become one of the most powerful ways to raise awareness, build brands, drive customer loyalty and attract audiences to sites. Building a loyal community who are engaged and willing to contribute social content is potentially one of the most critical components of sales conversion in e-commerce and essential to the digital strategy of any marketer or retailer who is trying to sell their products online.

This is an area that any online retailer should be looking into seriously, and we’ll be discussing the key issues in the session at ad:tech ‘What Is The Impact Of Social Content On e-Commerce?’. The panellists will be reviewing the key issues. They are:

• Mike Hickinbotham, Social Media Senior Advisor, Telstra
• Tim O’Neill, Joint Managing Director, Reactive
• Dan Ferguson, Online Channel Manager, General Pants
• Michael Gorman, Vice President for Strategy, Acxiom Global Multichannel Marketing Services
• Tim Hughes, Vice President, Commercial, HotelClub.com, Orbitz Worldwide

Myself and the ad:tech panel would welcome your comments and thoughts here.

And you can see the video of Tim Hughes sharing his thoughts on the subject here: