The Digital Skeptic: Social Media in Cleopatra Phase, Queen of Denial

NEW YORK ( TheStreet) -- Social media has entered its "Cleopatra" phase -- that is, it's the new Queen of Denial.

Last week, the social media tale took a bizarre turn. Information services giant IBM ( IBM) released a report on next-generation commerce called the Black Friday Report 2012.

Overall, life appears to be good on the digital frontier: Consumers spent roughly 20% more this Black Friday week than last, 24% of them used mobile devices. And the iPad became a retail sales portal.

But buried inside was a remarkable factoid: While overall social sentiment was positive -- chatter on Facebook ( FB) and Twitter was optimistic -- direct social shopper referrals dropped steeply.

"Shoppers referred from social networks such as Facebook, Twitter, LinkedIn ( LNKD) and YouTube generated 0.34% of all online sales on Black Friday," the intro to the IBM report said, "a decrease of more than 35% from 2011."

And Twitter referrals -- not sales, but the actual inbound clicks from Twitter -- dropped from 0.02% last year to 0.00%. That's no typo. That's a zero -- almost incomprehensible for a service with roughly 500 million users.

Not surprisingly, the IBM report set off a social media food fight.

"Considering the massive flood of tweets, Facebook likes, and Bit.ly clicks that all of us at DataSift saw," wrote Rob Bailey, chief executive of this U.K.-based social media data mining firm, "I was surprised by IBM's findings and think they may have given marketers the very wrong impression that social traffic wasn't important for retailers."

Twitter itself seemed to question IBM's results. Shane Steele, Twitter's director of sales and marketing, made a point of not commenting on the study to DestinationCRM.com, the New York-based industry market news service that covered the report.

Steele said IBM did not reveal enough details on its methodology.

So are investors looking at a social sales armageddon?

To find out, let's pop open the hood on this baby and see what IBM has going on.

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