Slowing economy 'leading to retail social media uptake'

Web 2.0

19 August 2008

Retailers in the US are increasing investment in social media marketing campaigns in a bid to boost their brands during a slowing economy, according to JupiterResearch.

The company said that a number of retail businesses are harnessing visual search, widgets, video and social networks, among other platforms, to combat the slowdown in spending on back-to-school items that has been predicted as a result of the credit crunch.

It cited the examples of JC Penney, which has developed a teen-targeted online game and a campaign promoting its clothing by picking out styles similar to those seen in cult 1980s movie The Breakfast Club, and Sears, which has launched a promotional drive based on High School Musical.

However, David Schatsky, president of JupiterResearch, stated: "Retailers experimenting with Web 2.0 experiences will largely find benefit from them in the form of branding and awareness building rather than direct sales as social media has shown little direct impact on actual online retail sales."

According to a recent report from eMarketer, 11 million Britons visited a social networking site last year.ADNFCR-1093-ID-18739172-ADNFCR

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