I read an article in Marketing Week recently which explored the new buzzword of digital marketing, ‘Social eCommerce’.

Social eCommerce is the integration of eCommerce and social media and it’s a movement that has really taken off in the past few months. However, I do wonder whether this concept has been introduced to the digital mix too soon, especially at a time when some retailers have not even mastered the art of providing good transactional sites and many websites still remain difficult to navigate and fail to entice customers to buy their products.

Amazon is one of the first companies to embrace social eCommerce and they have definitely earned that right, as advocators of the eCommerce explosion.

So what have Amazon actually done?

Amazon has launched a new program that lets shoppers access their Facebook pages directly through Amazon.com. The program allows them to receive personalised movies, music and book recommendations based on the preferences listed within their profiles on the social networking site. The application also keeps track of friend’s birthdays and can automatically provide you with gift suggestions based on their listed preferences.

Amazon, sensing the backlash about privacy, has already promised not to share information with Facebook or any outside sources. However, despite this promise, there still seems to be scepticism about other companies going down this route and it remains to be seen how popular this new feature will be.

Whatever the cost, brands in this day and age need to be continuously demonstrating that they are moving with the times and this is probably why Amazon have been prepared to take the risk.

Please let us know if any of you have had any experiences with social eCommerce and whether you feel it will take off.

The news that Lean Mean Fighting Machine has lost the Coca Cola account after it’s Dr Pepper social media marketing campaign put a reference to “2 girls one cup” (I won’t put a link to that here!) on the Facebook page of a 14 year-old girl shows the pitfalls of a medium where the brand owner loses a certain amount of control in the direction that a campaign can take.

Before the days of interactive marketing, a brand would commission its agency to produce work that was carefully monitored and signed off at every stage and then released to the world. There would be the occasional blunder – anyone remember the Hoover Airmiles sales promotion offer during the recession of the early nineties? – but on the whole, it was the brand rather than the agency that was holding the reins.

Whilst the development of technology has allowed brands to communicate with consumers in exciting new ways and at relatively low cost, the sheer speed and scale at which these campaigns can gather pace (and notoriety) shows how the brand can go from hero to villain in an instant.

Agencies know that they sometimes need to push the boundaries to give the brands they represent the edge over competitors but, as LMFM found out to their cost, it can be a very fine line between what the intended target audience, people outside this (as was the case here) and the brand owners themselves find humours or horrific.

How ironic the old Dr Pepper slogan of “so misunderstood” must seem now – but maybe not so much as “What’s the worst that could happen?”… Well, you could lose a multi-million pound account.

2010 has been interesting for a number of political, sporting and other factors. However, Alchemis is focused on advertising and marketing and the Guardian article (July 12th) was a great sanity check as it mirrors our experiences over the first half of 2010.

The article focuses on the recent Bellwether report, published by the Institute of Practitioners in Advertising. It has found that one in five companies cut annual advertising spend between April and June. This compares with 15% that said spend was increased.

It was as recent as Quarter One when the report announced that more UK companies raised their marketing budgets than cut them for the first time in two-and-a-half years.

Advertising took a knock, although big events such as the World Cup meant the dip in this area was not as significant as it could have been. Sales promotion was hit very hard, with the report recording “the third fastest downgrade to spending on the sales promotion sector in the Bellwether survey’s history”

It is not all doom and gloom. For those in the digital sector spend went up, although at a very slow rate. Internet advertising continued to grow, with social media remaining a major focus. With ROI crucial, digital media’s measurability is very appealing to company bean counters.

Despite all of this, as a new business agency, we (and our clients) should latch onto Rory Sutherland’s (IPA President) comments – “Although this indicates a less optimistic picture than previously thought for this year, marketing spend is still set to increase.”

In fact, we are optimistic at Alchemis. As I mention above, our experiences have mirrored the positive first quarter followed by a slower second quarter with the digital sector remaining the growth area. We, and our clients, entered 2010 with a bang. New briefs were plentiful and outstanding proposals suddenly got the green light. We had a record quarter for clients converting business in all disciplines. The feeling from the market and our clients felt positive. Companies and marketing departments had stuck two fingers up to the recession and the combined efforts of Alchemis and our clients over the last hard 12 months were paying dividends.

Quarter Two did see a dip, although in fact, there were and are still lots of opportunities out there for small to medium sized agencies and results from the second quarter still smashed the figures from 2009. I am not an economist, but there is no doubt in my mind that the uncertainty both before and following the election was a factor. Those are out of the way now and the one thing that has not waned is the number of marketing professionals who have wanted to meet new agencies. We have set record numbers of meetings in May and June. If times are tough, you need to look at quality, cost-effective solutions. I’ve waxed lyrical about it before, but our client base of small to medium sized agencies offer exactly that and the market is really open to approaches from them.

There is still much uncertainty out there and whilst commentators will have their opinion, what happens next is anyone’s guess. However, we know that you will need to be prepared for both a down or upturn. If your current clients cut their budgets, you need to have irons in the fire with new business. If, as we all hope, the second quarter dip is short lived, you want to make sure that you have got the introductions out of the way before those budgets are released and allocated.

The Lib-Cons will be there for a while yet, Germany has beaten us again, but who knows what the rest of 2010 will bring? All I know is that everyone in agency land needs to be prepared for any eventuality.