Facebook contributing just 1.4pc of traffic to e-commerce websites (infographic)

14 Nov 2014

Social networking behemoth Facebook is contributing an average 1.4pc of traffic and less than 1pc of total revenue to e-commerce websites.

That’s according to a new report from Wolfgang Digital. The Irish marketing firm analysed 56m e-commerce website visits and about €214m in revenue brought in by participating retail and travel websites, including Harvey Norman, Littlewoods and SunSearch Travel. The study took place between 1 August 2013 and 30 July 2014.

Display ads were also shown to be ineffective. Despite around one-third of digital marketing ad budgets being spent on displays, according to the Interactive Advertising Bureau, Wolfgang Digital’s E-Commerce KPI Benchmarks 2014 study revealed that display clicks accounted for less than 1pc of traffic generated.

In contrast, the study found 70pc of both e-commerce websites’ traffic and revenue comes from Google. While mobile and tablets now account for 44pc of traffic, the study discovered users aren’t likely to transact on the devices but often revisit a website at a later date to purchase.

“A key issue that digital marketers – and indeed marketers who can’t ignore digital any longer – must face is justifying their website performance to board level,” said Wolfgang Digital CEO Alan Coleman.

“Senior business people are rarely digital natives, but they do know numbers inside out. This e-commerce KPI report should arm digital marketers with the ammo to communicate their performance upwards more effectively.”

He added, “Right now there is a lag between the advertising capabilities that Facebook advertising offers and marketers’ successful adoption of it. I predict display budgets will migrate to Facebook advertising en masse once they get a handle on its potential.”

Below, an infographic outlines the study’s key findings.

Dean Van Nguyen was a contributor to Silicon Republic

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