Facebook has a constant policy of acquiring start-ups it considers worth developing. Some of the most notorious acquisitions of this type are Instagram, Whatsapp and Oculus. Others were shut down some time, without much hue and cry. The latest movement on the M&A sector made by Facebook is the acquisition of a video ecommerce start-up named Packagd.
Why Does the Acquisition of Packagd Matter?
The purchase was not officially announced and it may have passed under the radar but for two aspects. One is that most of the Packagd team transferred to Facebook in late September. The other is the name of one of its founders: Eric Feng, former partner of Kleiner Perkins Caulfield & Byers, a major US-based venture capital company.
At the moment of the acquisition the ecommerce start-up was working on a tool for YouTube. This tool would allow users to purchase products featured in videos directly from the video itself.
Video eCommerce – the Next Frontier for Marketing and Sales
So, why would Facebook purchase an ecommerce start-up that hasn’t even delivered a product yet? It would not be the first time. When Facebook purchased Oculus for US $2 billion, the company had barely put together a prototype.
There may be two explanations for this move, and one concerns you as a marketer or business owner. The first would be a vanity purchase that Facebook made to thwart its competitor Google (YouTube being owned by Google).
The second explanation is that Facebook is moving toward adding new shopping features to its platform.
How Would Video Shopping Change Facebook Marketing?
There is a clear track record that justifies this belief. First of all, Facebook added the Marketplace and Offer sections to its main platform, allowing users to buy products. Next, it launched Libra, its own cryptocurrency.
As for the concept of video ecommerce, it is not new for Facebook. Back in November 2018, the social media platform tested a Live Video Mode for Sellers. The feature was available for select users in Thailand, but failed to materialise into a new tool for marketers.
If the video ecommerce tool envisioned by Packagd becomes a reality, here is how it may affect your social media marketing strategy:
1. Create Experiences. Not Ads
With the potential ability to close a sale directly from a video, you should focus on honing your skills at creating emotional responses. The focus must not be the product itself, but how the user may feel owning it.
Consider two instances. A woman buys a dress because she loves the experience of feeling glamorous and sexy. A man buys sports shoes because they make him feel energetic and ready to exercise. It’s all about the experience, not the product.
2. Go Live Often and for Many Reasons
Live videos are no longer reserved for special events. Even if you want to tell your followers that a new product will arrive in your collection, do it in a live video. Also, live unboxing videos will become the norm, replacing standard product launches.
The most authentic launch experience when, right now and right here, your followers can see you opening the package and showing them what they get once they make a purchase.
3. Learn to Showcase Your Products
The experience closes the deal, but only if your products look appealing. You should strive to create a corner with the right lighting and props to film videos featuring your products. The right light and the right background can work wonders even for a basic item without special features.
Please note that so far Facebook has not announced how it plans to include Packagd and its video ecommerce tool into its platform. As soon as we learn of any new development, we will let you know.