Commerce continues to evolve as more consumers become tethered to their mobile devices and place more importance on social media. This evolution first began in the 80’s with the advent of the Internet and e-commerce. The proliferation of mobile technology brought about mobile commerce, which has only emerged within the past few years and is still considered to be in a state of infancy. Now, however, commerce is showing signs of a new evolutionary step, one called “participatory commerce” or “Pinterest commerce.”
Participatory commerce continues to gain some traction
Participatory commerce, as a term, was first coined by Mark Pincus, CEO of Zynga, in 2005. The term became somewhat popular in 2010 to describe the business model of FashionStake, a retail startup that was acquired by Fab.com in 2012. The term itself refers to a sales model that allows consumers to participate in the design, selection, and funding of certain products they are interested in purchasing. In some ways, this model is similar to popular crowdfunding platforms like Kickstarter, where individuals funding a project have some control over how that project will take form.
Retailers find value in social networking
Participatory commerce began being called Pinterest commerce in 2011 during the social network’s unexpected rise to fame. The retail industry was quick to see the possible benefits that Pinterest represented and moved to leverage the social network to their advantage. While Pinterest does not allow for online sales, it has proved to be a valuable platform through which retailers can expose consumers to new products and encourage online shopping.
New forms of commerce becoming increasingly social
The term is not widely used and is often considered to be an unnecessary subcategory of mobile commerce itself. It does, however, draw attention to the growing role of social media in the mobile commerce sector. Sites like Pinterest already hold a great deal of influence over consumers and retailers are becoming more adept at using these platforms to connect with mobile consumers in various demographics.
Zynga is in the midst of transitioning from social games to mobile games, but this shift has proven somewhat turbulent for the once popular developer. The company has targeted the mobile space as the ideal environment, wherein it can once again establish dominance in the gaming field. This comes after its fall from grace with Facebook and the subsequent crash of its status in the social gaming field. Mobile games do hold strong potential for the developer, but mounting financial problems could derail Zynga’s plans for the future.
Zynga posts decline in revenue
Zynga’s revenues for the first quarter of this year have declined by 18% year-over-year. During the first quarter, the company pulled in $264 million in revenue, but managed to report net income gains due to the continued performance of FarmVille 2, one of Zynga’s most played social games. Nonetheless, declining revenue presents a problem for Zynga, especially as some analysts suggests that the company will continue to report declines in revenue through the remainder of the year. Falling revenues could have an impact on Zynga’s ability to enter into the realm of mobile games.
Developer not likely to see gains through 2013
According to Zynga CEO Mark Pincus, 2013 is a transition year for the company. Pincus does not predict that Zynga will post promising results throughout 2013 until the company can establish a strong presence on the mobile gaming front. Currently, the developer does not anticipate any significant problems entering into mobile games, but development is rarely an inexpensive venture and producing games that do not end up a hit with consumers could lead the company into troubled financial waters.
Consumers wary of mobile games produced by Zynga
Zynga has the long term in mind when it comes to mobile games. The company is currently developing several titles for various mobile platforms, hoping to find the same success with mobile consumers that it had seen through social networks. Consumers remain wary of Zynga, however, as the developer has often been accused of blatantly copying other, more popular games in order to appeal to the interests of gamers.
