Why I am bullish on the future of “social commerce”.

It’s simple.

FB’s life (or at least their advertising dominance) likely depends on it.

And when there is that much at stake for a company with that many talented people and resources.

Problems get solved.

A brief 🧵/1
FB/IG pushing major UI changes to emphasize shopping is all about the vulnerability of the pixel.

FB pixels have sat on every website, tracking every purchase for years.

It’s their super power.

Now suddenly, privacy regulation (GDPR and CCPA) are messing with the pixel.

/2
Anyone who was running ads in July got a preview of the coming future when the CCPA rollout reeked havoc on your ability to target users in CA.

This was the first major advertising vulnerability I have witnessed on FB.

They patched it by passing the liability back to brand

/3
This won’t work forever, and I’d be interested to see if that indemnification would even hold up legally (lawyers chime in here)

The end of pixel/cookie tracking of unaware users is coming

FB knows it

/4
And this is exactly where “social commerce” comes in.

If they can close the loop on the purchase inside the app they aren’t dependent on the pixel data.

And there is a potential for the user to win here as well

In theory bringing the cart inside the app makes total sense

/5
Faster load times and a more seamless experience will make purchasing product from an ad magical.

Headless commerce is the future brands are already preparing for and FB is just going to keep pushing this direction because they can.

/6
At the end of the day FB controls the flow of traffic for soooo many brands that if they force their hands people will use the ad products in whatever way they are required to.

Including focusing on in app purchases.

At this isn’t just about playing defense...

/7
Competing with Amazon represents a major growth opportunity for FB

(And a defense against AMZs growing ad revenue)

FB shop can instantly be a massive marketplace if they point their users that direction. And paired with Shopifys backend and growing logistics network 👀👀🚀

/8
Don’t get me wrong. Today the experience is still clumsy and it’s basically just a giant aggregator linking out to 3rd party websites.

But don’t miss the message in the movement.

The main UI nav in FB is precious real estate reserved for only the highest value initiatives

/9
FB doesn’t f*ck around with threats to their ad dollars. King Zuck can see the future, and is looking secure the kingdom. Out goes the heart, time to secure the bag.

Agree? Disagree? What am I missing?
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