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For details on each of the above and more, see blog.3d The competition for mobile ad revenue is intensifying, espe-
cart.com/7-social-commerce-tools-to-increase-traffic and cially with the increased use of smartphones. Advertisers are
Offerpop (2014). starting to attach ads to video clips (see Chapter 9). Finally,
For how ZIPCAR is using social campaigns on Facebook advertisers use microblogging, especially Twitter, to reach
to drive traffic to their website, see Belosic (2015). large audiences.

The Changing Rules of Branding
SECTION 7.5 REVIEW QUESTIONS
The December 2010 issue of Harvard Business Review is
dedicated to the new rules of branding introduced by social 1. Describe advertising in social commerce.
media. Four articles there discuss how social networks can 2. Define social ads and social apps.
help you build—or destroy—your brand. 3. Define viral marketing.
4. Describe viral blogging.
Using Blogs 5. Define geolocation and geosocial networks.
6. How does location-based advertising work?
Blogs are Web 2.0 tools known as being an effective means 7. List some concerns of LBS advertising.
of market communication, information dissemination, rec- 8. Describe viral videos.
ommendations, and discussions about products (including 9. How is Twitter used for advertising?
upcoming ones). For example, merchants can post ideas 10. Describe mobile advertising.
about new products to start a discussion and collect opinions.
Blogs can be added to a company’s Facebook page (or pages
of other social networks) as well as to the company’s in- 7.6 SOCIAL CUSTOMER SERVICE
house webstore. In addition, companies can place click-on AND CRM
banners on bloggers’ pages.
The customer service landscape is undergoing significant
Using Coupons transformation. The change is reflected both in the way that
customers interact with organizations and the manner in
Coupons can be distributed in several ways in social com- which the company’s employees interact with customers.
merce. One method is to distribute coupons by deploying For an overview, see Goldenberg (2015).
LBS. Once a vendor knows your location and how to e-mail These changes resulted from the introduction of social
or text you, targeted coupons can be sent to you. Another media; and at first, one may think that not much of a connec-
way is to offer coupons on a company’s Facebook Offers tion exists between customer service and social commerce.
page. This is done via Facebook Offers. Coupons are used by However, the opposite is true. Managing customer relation-
Groupon (see the closing case in this chapter). ships is a major business challenge related to social business
implementation.
Facebook Offers

This feature allows companies to post coupons on their How Does Social Networking Empower
Facebook page. Fans as well as other users can “claim” the Customers?
offers (click on “get offer”) that come as a mobile newsfeed.
Any offer that is claimed is e-mailed to the person who It is said that one angry tweet can torpedo a brand, but one
claimed it for printing or sharing with friends. Offers can be sweet tweet can correct a problem. Many customers have
daily deals and other promotions. ended a relationship with vendors due to perceived poor cus-
tomer service. Let us examine how Facebook helped change
Using Snapchat a policy for one company.

This social network is emerging as a serious venue for adver- Example: How Facebook’s Chorus Ended the Instrument
tising and sales. For an overview, see Quensenberry (2016). Luggage Ban at Qantas Airways of Australia
Qantas Airways had a policy that required large musical
Mobile Advertising instruments to be stored in the cargo hold, which would some-
times cause damage to the instruments. In Fall 2010, after
Mobile advertising is a rapidly developing area. It refers to suffering $1200 in damages to her saxophone, Jamie Oehlers
advertisements on smartphones and other mobile devices. of Australia organized a Facebook campaign to persuade the