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EXCERPT from the Intelligence Report: Instagram

To access the full report, contact membership@L2ThinkTank.com

Instagram
February 10, 2014

In Partnership with:

© L2 2014 L2ThinkTank.com
Intelligence Report:

Instagram

EXCERPT from the Intelligence Report: Instagram

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Watch the Video

THE WORLD’S MOST POWERFUL SOCIAL PLATFORM?
Size vs Engagement

Explosive growth, aspirational demographics, and unmatched
engagement have secured Instagram’s place among the social
media elite. Instagram amassed 150 million monthly users in three years—two years

The Other Girl
Instagram is often compared to the other visual darling Pinterest, launched six months
before Instagram (October 2010). Today, Pinterest is a third of Instagram’s size and
23 percent of Pinterest users engage with the platform daily, versus 58 percent on
Instagram.4 Other upstart visual and mobile platforms, including Vine, have entered
the fray. However, within a week of launching video, Instagram passed Vine in shares
on Twitter 5 and boasts 2.5 times the shares.6 The reach and appeal of the 15-second
video format, ideal for ads, gives Instagram an edge (Vine limits videos to six seconds)
with advertisers.
	 The biggest threat may be newcomer Snapchat. However, while seven times more
photos are uploaded daily to Snapchat, Instagram’s superior demographics—slightly
older, higher income users—has greater appeal to marketers. Recently Instagram took
direct aim at Snapchat with the December 2013 launch of direct messaging, enabling
brands to engage in two-way conversations with consumers.
1.	 L2 Intelligence: Social Platforms, August 2013.
2.	 Instagram, September 2013.
3.	“Tops of 2013: Digital,” Nielsen, January 2014.
4.	“Social Media Update 2013,” Maeve Duggan and Aaron Smith, Pew Internet, December 30, 2013.
5.	“A Week After Instagram’s Video Launch, Vine Sharing Tanks On Twitter,” Matt McGee, Marketing Land, June 27, 2013.
6.	 Topsy, January 2014.

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

122,031
1.53%
150 million

1.5%

Community Size
Interaction Rate
Monthly Active Users = Size

1.2%
Engagement Rate

faster than Facebook and half the time of Twitter. Although an eighth of parent company
Facebook’s community, Instagram registers 15 times the engagement and double the
engaged user base (Total Community Size x Engagement Rate) of the mother ship. 93
percent of prestige brands now maintain a presence on the photo-sharing platform, up
from 63 percent in July 2013.1
	 As teens migrate away from Facebook, Instagram has maintained its street cred and
is the fastest growing global social platform. The visual platform acquired 60 million new
monthly active users in 2013,2 the highest year-over-year growth (66 percent) among top
10 mobile apps.3

Prestige Brands
January 2014, n=249

0.9%
0.6%

60,976
0.04%
218 million

0.3%
0.0%

1,256,088
0.10%
1,190 million
255,587
0.09%
300 million

0

500,000

1,000,000

1,500,000

Community Size

Engaged Users
Users x Platform Engagement Rate (MM)
December 2013

2.3
1.2
0.3
0.1
Instagram

Facebook

Google+

Twitter

2
Intelligence Report:

Instagram

EXCERPT from the Intelligence Report: Instagram

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Global Social Platform Active Usage
Percentage Change
Q2–Q4 2013

Best/Worst
Although both had billion dollar price tags, Instagram is arguably the best media
acquisition of the last five years and Tumblr the worst. Prestige brands have abandoned
Tumblr, and the adoption rate has declined. Instagram’s 2014 revenues are forecast at
$250 million–$400 million,7 while mention of Tumblr was noticeably absent from parent
company Yahoo!’s recent earnings announcement.

23%

Instagram
Linkedin

9%

Tencent Weibo

9%

Sina Weibo

6%

Pinterest

6%

Tumblr

6%

Google+

6%

Picture > Thousand Clicks
Visual media do more than communicate information, they inspire emotion and
action. Serving a potent cocktail of visual and mobile, Instagram could be the first
platform that delivers on the promise of social commerce via the power of usergenerated content. Featuring user-generated photos at the point of purchase boosts
conversion up to 7 percent.8 However, most prestige brands are failing to translate
Instagram’s engagement to e-commerce, as just 14 percent utilize Instagram UGC on
their brand sites.

-3%

YouTube

-3%

Facebook

-3%

VK
Myspace

-12%

L2 Intelligence: Instagram
In August 2013, L2 surveyed prestige brands across 15 global social media platforms.
We turn our focus to Instagram, evaluating performance and programming of 249
prestige brands on the platform. Our aim is to provide data, best practices, and case
studies to help managers achieve greater ROI on digital efforts. Like the medium we are
assessing, our approach is dynamic. Please reach out with comments regarding our
methodology and findings.

2%

Twitter

Source: GlobalWebIndex Q4 2013, Global Internet

Top 10 Mobile Apps 2013
1

Facebook

103,420,000

27%

Google Search

75,984,000

37%

Google Play

73,677,000

28%

4

YouTube

71,962,000

27%

5

Google Maps

68,580,000

14%

Gmail

64,408,000

29%

7

Instagram

31,992,000

66%

8

Maps (Apple)

31,891,000

64%

9

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

YoY % Change

6

7.	 Analyst Estimate, Evercore, October 2013.
8.	 Olapic, January 2014.

Average Unique Users

3

PAU SABRIA
Co-Founder, Olapic
pau@olapic.com

App

2

SCOTT GALLOWAY
Professor of Marketing, NYU Stern; Founder, L2
scott@stern.nyu.edu

Rank

Stocks

30,781,000

32%

10

Twitter

30,760,000

36%

Source: Neilson, January 2014

3
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Instagram

Instagram: User Growth
December 2010–December 2013

160

Direct Messaging
150 million
Advertising

140
130 million
Video Sharing

Number of users (millions)

120

100 million

100

100 million
Online Profiles

90 million
80 million

80

Instagram switches to
releasing Monthly Active
Users rather than local
number of users

60
50 million
Facebook Acquires Instagram

40 million

40

Android App
20

15 million
10 million
1 million

0
Dec
2010

5 million
Jun
2011

Sep

Dec

Apr May

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

Jul
2012

Sep

Jan Feb

Jun
2013

Sep

Nov Dec
2014

4
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Instagram

Brand List
in Alphabetical Order by Sector
BEAUTY

Almay
Aveda
Aveeno
Avon
Bare Escentuals
Benefit Cosmetics
Bobbi Brown
Burt’s Bees
Carol’s Daughter
Cetaphil
Clarins
Clinique
CoverGirl
Dove
Elizabeth Arden
EM Cosmetics
Essie
Estée Lauder
Fresh
Garnier
Giorgio Armani Beauty
Iman Cosmetics
Kiehl’s
L’OCCITANE en Provence
L’Oréal Paris
La Mer
La Prairie
La Roche-Posay
Lancôme
Laura Mercier
MAC Cosmetics
Make Up For Ever
Mary Kay
Maybelline New York
NARS Cosmetics
Neutrogena
Nivea
Olay
OPI
Origins
Perricone MD

Philosophy
Proactiv
Revlon
Rimmel London
Sally Hansen
Shiseido
SK-II
Skinceuticals
Smashbox Cosmetics
Trish McEvoy
Urban Decay
Vichy
Yves Saint Laurent Beauty

Marc Jacobs
Max Mara
Michael Kors
Oscar de la Renta
Prada
Ralph Lauren
Saint Laurent
Salvatore Ferragamo
Tod’s
Tommy Hilfiger
Tory Burch
Valentino

RETAIL
FASHION

Alexander McQueen
Alfred Dunhill
Armani
Balenciaga
Bally
Bottega Veneta
Burberry
Calvin Klein
Chanel
Chloé
Christian Louboutin
Coach
Cole Haan
Diane Von Furstenberg
Dior
Dolce & Gabbana
Donna Karan
Ermenegildo Zegna
Fendi
Gucci
Hermès
Hugo Boss
Jimmy Choo
Kate Spade
Louis Vuitton

7 For All Mankind
A|X Armani Exchange
Abercrombie & Fitch
Aéropostale
Aldo
American Apparel
American Eagle Outfitters
Ann Taylor
Anthropologie
ASOS
Banana Republic
Barneys New York
Bath & Body Works
BCBG
Bergdorf Goodman
Bloomingdale’s
Blue Nile
Bluefly
Bon-Ton
Boots
Brooks Brothers
Brown Thomas
CB2
Century 21
Chico’s
Club Monaco

Crate & Barrel
Daslu
de Bijenkorf
Destination Maternity
Diesel
Dillard’s
El Corté Ingles
El Palacio de Hierro
Esprit
Ethan Allen
Express
Fenwick
Free People
French Connection
Galeries Lafayette
Galleria Department Store
Gap
Godiva Chocolatier
Guess
GUM
Gymboree
H&M
Harrods
Harvey Nichols
Holt Renfrew
House of Fraser
Hudson’s Bay
IKEA
Intermix
J Brand
J.Crew
Jelmoli
Joe Fresh
John Lewis
Juicy Couture
KaDeWe
Kay Jewelers
La Maison Ogilvy
La Rinascente
Lacoste
Lane Crawford

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

Le Bon Marche
Liberty
Lord & Taylor
Lucky Brand
Lululemon Athletica
Lush
Macy’s
Marks & Spencer
Massimo Dutti
Neiman Marcus
Net-A-Porter
Nine West
Nordstrom
Pier 1 Imports
Pottery Barn
Printemps
Restoration Hardware
Saks Fifth Avenue
Selfridges
Sephora
Shopbop
Steve Madden
Stuart Weitzman
Swatch
Talbots
The Body Shop
Topshop
TSUM
Tumi
Ulta
Uniqlo
United Colors of Benetton
Urban Outfitters
Victoria’s Secret
Vince Camuto
Von Maur
West Elm
White House | Black Market
Williams-Sonoma
YOOX
Zales

Zappos.com
Zara

HOTELS

Conrad
Fairmont Hotels
Four Seasons
InterContinental
Jumeirah
JW Marriott
Le Meridien
Mandarin Oriental
Morgans
Park Hyatt
Relais & Chateaux
Rosewood
Shangri-La
Sofitel
St. Regis
The Peninsula
The Ritz-Carlton
Waldorf-Astoria
Westin

Montblanc
Movado
Officine Panerai
Omega
Pandora
Patek Philippe
Piaget
Raymond Weil
Rolex
Swarovski
TAG Heuer
Tiffany & Co.
Vacheron Constantin
Van Cleef & Arpels

WATCHES & JEWELRY

Audemars Piguet
Baccarat
Baume et Mercier
Bulgari
Cartier
Chopard
David Yurman
De Beers
Fossil
Harry Winston
Hublot
IWC Schaffhausen
Jaeger-LeCoultre
Longines

5
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Instagram

Instagram By The Numbers
ADOPTION
92%

of prestige brands have an Instagram

Monthly Active Users

150 million

account

60% of users
outside of U.S

It took Instagram 1/2 the time of Twitter
and 2 years less than Facebook to reach
150 million monthly active users

In 2013
Instagram gained 60 millon+ new monthly active users
Instagram’s Engaged User Base
(Total Community Size x Engagement Rate)
is 2x

CONTENT

ENGAGEMENT

Facebook’s

66% YOY increase in Average Unique
Users of the Instagram app in 2013

54% of all internet users post

Instagram engagement is 15x Facebook’s

	

9 out of 10 Instagram video shares

Average Time Spent Per User Per Month: 257 minutes

occur on Facebook

Seventy-two percent of prestige
brands post Instagram videos

Number of Comments Per Second: 1,000

Number of Likes Per Second: 8,500
Number of Likes Per Day: 1.2 Billion

On average prestige brands post 6 images per week
and 0.38 videos per week

Engagement on prestige brand photo

Total Photos Shared on Instagram to date: 16

Billion
Average Photos Uploaded Per Day: 55 Million

posts is 1.5x video posts

14% of prestige brands integrate 		
	

57% of users use Instagram
	

63% of prestige brands link to their instagram
account from their brand

per day

68% of Instagram’s users are women
income greater than $75k use Instagram

2014

site

35% of users visit Instagram
more than once

16% of online adults with household

Instagram UGC on their brand site

on a daily basis

1/2 of Instagram users are on Android; 1/2 are on iOS
90% of Instagram users are under 35

original photos and videos online

54% of prestige brands link from Facebook 	

	

99% of post engagement is from Likes

Instagram’s 2014 revenues are forecast at

to their Instagram account

2.5x more Instagram links than Vine’s
are shared on Twitter

$250-$400 Million

Source: L2 Think Tank, Instagram, Global Web Index, Business Insider, Wall Street Journal, Pew Internet Research, UnRuly, Topsy, Twitter, Facebook, Evercore

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

6
Intelligence Report:

Instagram

EXCERPT from the Intelligence Report: Instagram

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Key Findings
Instagram: Average Size, Growth, and Engagement by Category

Now…Instagram

August 1–December 2013, n=232
2.5%

Engagement Rate

Ninety-three percent of prestige brands are present on
Instagram, up from 63 percent in July 2013. Brands
post an average of 5.5 times a week, and 43 percent
of accounts post more than once a day. Ninety-nine
percent of user engagement is likes. Retail and Fashion
brands dominate the top 10 largest communities.
For these categories, Instagram is an evolved form of
window-shopping enabling users to see products on
organic mannequins. Beauty brand accounts are the
fastest growing and yield the greatest engagement. Cult
Beauty brands Urban Decay, Essie, and Lush outperform
the establishment.

2.5%

Watches & Jewelry
1,749,178
Hospitality n=24
204,729
n=17

Specialty Retail
23,304,853
n=102

Beauty
3,626,363
n=53

Fashion
14,741,894
n=36

1.5%

1.0%
0%

50%

100%

150%

200%

250%

Growth

Instagram: Community Size vs. Engagement
Fashion

December 31 2013, n=173
Retail
Beauty
Watches & Jewelry

Engagement Rate Logarithmic Scale

9.0%

Essie
Lush
Maybelline

Tiffany & Co.
Urban Decay
Michael Kors
Nordstrom

Jimmy Choo

Victoria Secret

Urban Outfitters

1.0%

y=-0.001ln(x) + 0.0249
R2=0.08404

0.2%
0%

10,000

100,000

1,000,000

10,000,000

Community Size Logarithmic Scale
© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

7
Intelligence Report:

Instagram

EXCERPT from the Intelligence Report: Instagram

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Key Findings
Instagram: Average Size, Growth, and Engagement by Region

The Global Language of Pictures

December 2013, n=249
4.0%

3.5%

Engagement Rate

Instagram is available in 25 languages and 60 percent
of users reside outside the United States. Thailand’s
Siam Paragon mall was the most Instagrammed place
in 2013.9 Unlike other Western platforms, Instagram
(inexplicably) has been allowed behind China’s “Great
Firewall,” and content is sharable to China’s Sina Weibo
and Japan’s Mixi. A burgeoning Instagram economy
has emerged in Kuwait, selling everything from sheep to
lipstick. Outside of the U.S., Brazil, The United Kingdom,
Russia, and Mexico round out the top five countries
accessing Instagram.10
	 Across prestige brand accounts Instagram’s visuals
require little translation. In the last five months of 2013,
prestige brand Instagram communities in Asia-Pacific, the
world’s largest consumer market, quadrupled. Eastern
European prestige brand communities, led primarily by
Russian accounts, record the highest engagement.

Eastern Europe
n=45

3.0%

2.5%

Latin America
n=32
Middle East & Africa
n=13

2.0%

Western Europe
n=43

APAC
n=45

1.5%

1.0%
20%

Topshop’s Russia
account has
19,000 followers.

North America
n=46
40%

60%
Average Growth

From August to
December, Kate
Spade’s Thailand
account grew 146
percent to 7,500
followers.

80%

100%

Within 3 months
of the integration,
50,000 Chinese
linked their
Instagram and
Sina Weibo
accounts.

9.	“Thanks to Thailand’s snap-happy Instagrammers, one Bangkok mall is
Instagram’s most photographed place in 2013,” Steven Millward, Tech in Asia,
December 13, 2013.
10.	Alexa, January 2014.

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

8
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Instagram

Key Findings
Insta-Video

Instagram Engagement: Top 10 Videos

Seventy-two percent of prestige brands post Instagram
videos, up from 26 percent in July 2013. However, video
posts account for only 4 percent of brand content. The
expertise required to produce high quality short-form
video remains a barrier for most brands. On average
brand accounts post six images per week, versus less
than one video post every two weeks (0.38 per week).
Engagement on photo posts averages 1.5 times that of
Instagram video posts. Reposted advertising and contest
posts generate the most engagement.
	 It is not a coincidence that the run time for Instagram
videos is 15 seconds, the minimum length of a television
commercial. It is rumored that the platform will sell
Instagram video ads similar to television airtime.

August–December 2013, Account > 5,000 followers

5.16%

4.87%

3.79%

3.71%

3.32%

3.12%

2.97%

2.90%

3.46%

2.89%

Instagram Engagement: Photos vs. Videos
August–December 2013, n=364, Account > 5,000 followers
Photos

Instagram Engagement: Top 10 Photos

Videos

August–December 2013, Account > 5,000 followers
Advertisement

2.49%

Contest

1.65%
1.27%
0.85%
45.22%

65.55%

25.17%

12.40%

0.05% 0.05%
Average Like
Engagement

Average Overall
Engagement

Average Comment
Engagement

11.77%
© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

10.43%

8.36%

8.25%

7.48%

7.34%

9
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Instagram

Key Findings
Instagram Facebook Integration

Facebook Integration
Parent company Facebook serves as a promotion,
content syndication and content solicitation vehicle
for Instagram. Nine out of ten Instagram video shares
occur on Facebook,11 and one percent of brand posts
to Facebook are from Instagram.12 Slightly more than
half of prestige brands feature a Facebook custom tab
highlighting Instagram content.

Percentage of Brands
December 2013, n=249

89%

54%

12%
Instagram
Main Account

Facebook
Custom Tabs

9%

6%

Promoted Instagram
in Last 30 Days

Solicited
Instagram UGC
in Last 30 Days

Curating/Displaying
Instagram Content
Custom Tabs

Select photos uploaded through
Facebook are featured on The RitzCarlton Instagram account.

Carol’s Daughter uses
Facebook to promote
Instagram-exclusive
offers and page
content and often
reposts its followers’
Instagrams.

Celebrating its loyalty program’s
30th anniversary, a Neiman Marcus
contest uses Instagram hashtag
#NMInCircle and a Facebook custom
tab to accept submissions, display
entries, and announce winners.
11.	Unruly, October 2013.
12.	“How Does Posting Via Instagram Impact Engagement on Facebook?”
Edgerank Checker, October 23, 2013.

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

A Facebook photo album of
pictures submitted by Cole Haan
Instagram followers is among its
most popular content and has
been liked 2,300 times.

10
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

To access the full report, contact membership@L2ThinkTank.com

Instagram

February 10, 2014

Table of Contents
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6
7

Brand List
Instagram by the Numbers

8
10
11
13
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

Now…Instagram KEY FINDING
The Global Language of Pictures KEY FINDING
Michael Kors IN THE COMPANY OF GENIUS
Hashing It Out KEY FINDING
Benefit Cosmetics FLASH OF GENIUS
Insta-Video KEY FINDING
Swarovski #InstaSparkle and Giorgio Armani #SiByArmani FLASH OF GENIUS
Visual Commerce The Next Frontier KEY FINDING
Visual Commerce = Conversion KEY FINDING
West Elm FLASH OF GENIUS
Urban Outfitters and Free People FLASH OF GENIUS
Lancôme FLASH OF GENIUS
Facebook Integration KEY FINDING
White House | Black Market #WearWhatWorks FLASH OF GENIUS
Instagram Advertising KEY FINDING
Macy’s Floats Instagram Advertising FLASH OF GENIUS
Starwood Hotels & Resorts Guest Galleries FLASH OF GENIUS
Instagram Direct KEY FINDING
Estée Lauder FLASH OF GENIUS

30
31

The Team
About L2

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11
Intelligence Report:

Instagram

EXCERPT from the Intelligence Report: Instagram

To access the full report, contact membership@L2ThinkTank.com

February 10, 2014

The Team
Scott Galloway

R. Danielle Bailey

Aaron Bunge

Professor of Marketing, NYU Stern
Founder, L2
Scott is a Clinical Professor at the NYU Stern School of Business, where
he teaches brand strategy and digital marketing, and is
the founder of L2,
a think tank for digital innovation. Scott is also the founder of Firebrand
Partners, an operational activist firm that has invested more than $1
billion in U.S. consumer and media companies. In 1997, he founded Red
Envelope, an Internet-based branded consumer gift retailer. In 1992,
Scott founded Prophet, a brand strategy consultancy that employs more
than 250 professionals in the United States, Europe, and Asia. Scott was
elected to the World Economic Forum’s Global Leaders of Tomorrow.

L2
Danielle began her career at The Home Depot, Inc., where she led a
variety of internal consulting engagements focused on supply chain,
merchandising, and in-store process improvement. She went on to
manage the implementation of award-winning mobile initiatives for
several large media clients, including The New York Times Company,
NBCUniversal, Disney/ABC, Maxim magazine, and Zagat. At L2 she has
benchmarked the digital competence of brands spanning the specialty
retail, public sector, pharma, wine and spirits, travel, and financial services
industries. Danielle has a B.S. in Systems Engineering from the University
of Virginia and an M.B.A. from NYU Stern.

L2
Aaron is an art director who specializes in data visualization, collateral,
branding and identity, packaging, and web design. His approach is
aesthetic and functional, characterized by clear, intelligent design
appropriate to the project at hand. He began his career tailoring projects
for the Chinese, Australian, and U.S. markets across multiple design
disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design
from Iowa State University.

Scott has served on the boards of directors of Eddie Bauer (Nasdaq:
EBHI), The New York Times Company (NYSE: NYT), Gateway Computer,
and UC Berkeley’s Haas School of Business. He received a B.A. from
UCLA and an M.B.A. from UC Berkeley.

Qiuping (Andrea) Wang

Pau Sabria
Olapic
Pau is co-founder and CEO of Olapic, a company that helps brands and
retailers increase sales by integrating customer photos and videos into the
shopping experience. Sabria studied Electrical Engineering at Universitat
Politècnica de Catalunya in Barcelona and graduated with a thesis in
distributed video coding at Purdue University, Indiana. He then joined The
Boston Consulting Group, where he worked for 3 years and co-founded
Olapic while completing his MBA at Columbia University.

Maureen Mullen
Director of Research & Advisory, L2
Maureen leads L2’s research and advisory practice, where she helped
develop the Digital IQ Index®. She has benchmarked the digital marketing,
e-commerce, and social media efforts of more than 300 brands across
pharma, auto, luxury, specialty retail, beauty, and the public sector.
Maureen also has led digital strategy consulting engagements for a variety
of Fortune 1000 clients. Before joining L2, Maureen was with Triage
Consulting Group and led managed-care payment review and payment
benchmarking projects for hospitals, including UCLA Medical Center,
UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford
University and an M.B.A. from NYU Stern.

L2
Andrea has five years of working experience in telecom industry, helping
brands like LG and Motorola develop integrated marketing communication
strategies and campaigns for the Chinese market. During the MBA
exchange program at NYU Stern she demonstrated a strong interest in
digital marketing. She has a B.A. in Journalism and Communication from
Peking University and an M.B.A. from Hong Kong University of Science
and Technology (HKUST).

Joy Duo
L2
Joy holds a B.S. in Economics from University of International Business and
Economics (UIBE) in Beijing and is currently a second year M.B.A student at
ESADE Business School in Barcelona. She began her career as an analyst
at Mercer Consulting, where she also led the Beijing office’s global client
management. She recently completed the M.B.A exchange program at NYU
Stern developing a strong interest in marketing and technology. She is also
a part-time fashion editor, covering the Chinese fashion market and social
media for a Milan-based business intelligence company.

Nary Han
L2
Nary is a designer specializing in data visualization, branding and identity.
She has experience in areas ranging from motion graphics, interactive and
environmental experiences, and graphic design. She has worked in many
areas to design, conceive, and execute identities for several clients including
Fidelity, Vivo Health & Wellness, and NASDAQ. She graduated with a B.F.A.
from Parsons School of Design.

Radhika Patel
L2
Radhika Patel is a graphic designer who specializes in publication design as
well as data visualization. She has experience in motion graphics, electronic
media, experience design, and animation. Before joining the L2 team she
worked at The Royce J. and Caroline B. Watts Museum in West Virginia.
Radhika received her B.F.A. in Graphic Design from West Virginia University.
A special thank you to Stasha Rosen, Jenny Shen, and Bing Wu.

Carol Ho
L2
Carol holds a B.Sc in Biomedical Science from King’s College London
and an M.B.A. from the Hong Kong University of Science and Technology
(HKUST). She began her career at Pfizer, where she led cross-functional
teams to deliver global projects on regulatory approvals, streamline
processes and establish the Asia hub. While pursuing her M.B.A., Carol
worked part-time supporting the digital marketing and E-commerce
functions for a luxury brand.

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

12
EXCERPT from the Intelligence Report: Instagram

Intelligence Report:

February 10, 2014

To access the full report, contact membership@L2ThinkTank.com

Instagram

About L2

?

L2 is a think tank for digital innovation.

Upcoming Events

We are a membership organization that brings together thought leadership from
academia and industry to drive digital marketing innovation.

BR E A K FA S T & L U N C H :   I N S TAG R A M

February 13, 2014 · New York City
L U N C H :   S P I R I TS

February 27, 2014 · New York City

R ESEAR C H

Digital IQ Index : The definitive benchmark for online competence, Digital IQ Index reports score
®

®

brands against peers on more than 600 quantitative and qualitative data points, diagnosing their digital
strengths and weaknesses.
L2 Collective®: Series of benchmarking reports designed to help member brands better understand
resources, human capital, budgets, and priorities supporting digital strategies.

BR E A K FA S T: EU BEA U TY

March 5, 2014 · Paris
March 7, 2014 · London
C L I N I C : P R O G R A M M ATI C M E D I A

March 11, 2014 · New York City
EVENT S

Forums: Big-picture thinking and game-changing innovations meet education and entertainment.

LUNCH: HAIR CARE

The largest gatherings of prestige executives in North America.

March 18, 2014 · New York City

300+ attendees
Clinics: Executive education in a classroom setting with a balance of theory, tactics,

Upcoming Research: Q1 2014

and case studies.

D I G I TA L I Q I N D EX ® R E P O RTS :

120 –180 attendees

Beauty: France

Working Lunches: Members-only lunches led by digital thought leaders and academics.

Food

Topic immersion in a relaxed environment that encourages open discussion.

Beer

40–80 attendees

Beauty: UK
Spirits

CONSULT ING

Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives.
Advisory work includes Digital Roadmaps, Social Media Strategy, and Organizational Strategy engagements.
MEMBER SHIP

L 2 I N TE L L I G EN C E R E P O RTS :

Amazon
Mobile
Tablets

For membership info and inquiries: membership@L2ThinkTank.com

© L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.

13
EXCERPT from the Intelligence Report: Instagram

To access the full report, contact membership@L2ThinkTank.com

A THINK TANK
for DIGITAL INNOVATION
155 Wooster Street, 2nd Floor
New York, NY 10012
L2ThinkTank.com
info@L2ThinkTank.com

© L 2 2014 L 2 ThinkTank.com Reproductions Prohibited
This report is the property of L2 Think Tank. No copyrighted materials may
be reproduced, redistributed, or transferred without prior consent from L2.
L2 reports are available to L2 Members for internal business purposes.

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L2 intelligence-report-instagram-2014-excerpt

  • 1. EXCERPT from the Intelligence Report: Instagram To access the full report, contact membership@L2ThinkTank.com Instagram February 10, 2014 In Partnership with: © L2 2014 L2ThinkTank.com
  • 2. Intelligence Report: Instagram EXCERPT from the Intelligence Report: Instagram February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Watch the Video THE WORLD’S MOST POWERFUL SOCIAL PLATFORM? Size vs Engagement Explosive growth, aspirational demographics, and unmatched engagement have secured Instagram’s place among the social media elite. Instagram amassed 150 million monthly users in three years—two years The Other Girl Instagram is often compared to the other visual darling Pinterest, launched six months before Instagram (October 2010). Today, Pinterest is a third of Instagram’s size and 23 percent of Pinterest users engage with the platform daily, versus 58 percent on Instagram.4 Other upstart visual and mobile platforms, including Vine, have entered the fray. However, within a week of launching video, Instagram passed Vine in shares on Twitter 5 and boasts 2.5 times the shares.6 The reach and appeal of the 15-second video format, ideal for ads, gives Instagram an edge (Vine limits videos to six seconds) with advertisers. The biggest threat may be newcomer Snapchat. However, while seven times more photos are uploaded daily to Snapchat, Instagram’s superior demographics—slightly older, higher income users—has greater appeal to marketers. Recently Instagram took direct aim at Snapchat with the December 2013 launch of direct messaging, enabling brands to engage in two-way conversations with consumers. 1. L2 Intelligence: Social Platforms, August 2013. 2. Instagram, September 2013. 3. “Tops of 2013: Digital,” Nielsen, January 2014. 4. “Social Media Update 2013,” Maeve Duggan and Aaron Smith, Pew Internet, December 30, 2013. 5. “A Week After Instagram’s Video Launch, Vine Sharing Tanks On Twitter,” Matt McGee, Marketing Land, June 27, 2013. 6. Topsy, January 2014. © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 122,031 1.53% 150 million 1.5% Community Size Interaction Rate Monthly Active Users = Size 1.2% Engagement Rate faster than Facebook and half the time of Twitter. Although an eighth of parent company Facebook’s community, Instagram registers 15 times the engagement and double the engaged user base (Total Community Size x Engagement Rate) of the mother ship. 93 percent of prestige brands now maintain a presence on the photo-sharing platform, up from 63 percent in July 2013.1 As teens migrate away from Facebook, Instagram has maintained its street cred and is the fastest growing global social platform. The visual platform acquired 60 million new monthly active users in 2013,2 the highest year-over-year growth (66 percent) among top 10 mobile apps.3 Prestige Brands January 2014, n=249 0.9% 0.6% 60,976 0.04% 218 million 0.3% 0.0% 1,256,088 0.10% 1,190 million 255,587 0.09% 300 million 0 500,000 1,000,000 1,500,000 Community Size Engaged Users Users x Platform Engagement Rate (MM) December 2013 2.3 1.2 0.3 0.1 Instagram Facebook Google+ Twitter 2
  • 3. Intelligence Report: Instagram EXCERPT from the Intelligence Report: Instagram February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Global Social Platform Active Usage Percentage Change Q2–Q4 2013 Best/Worst Although both had billion dollar price tags, Instagram is arguably the best media acquisition of the last five years and Tumblr the worst. Prestige brands have abandoned Tumblr, and the adoption rate has declined. Instagram’s 2014 revenues are forecast at $250 million–$400 million,7 while mention of Tumblr was noticeably absent from parent company Yahoo!’s recent earnings announcement. 23% Instagram Linkedin 9% Tencent Weibo 9% Sina Weibo 6% Pinterest 6% Tumblr 6% Google+ 6% Picture > Thousand Clicks Visual media do more than communicate information, they inspire emotion and action. Serving a potent cocktail of visual and mobile, Instagram could be the first platform that delivers on the promise of social commerce via the power of usergenerated content. Featuring user-generated photos at the point of purchase boosts conversion up to 7 percent.8 However, most prestige brands are failing to translate Instagram’s engagement to e-commerce, as just 14 percent utilize Instagram UGC on their brand sites. -3% YouTube -3% Facebook -3% VK Myspace -12% L2 Intelligence: Instagram In August 2013, L2 surveyed prestige brands across 15 global social media platforms. We turn our focus to Instagram, evaluating performance and programming of 249 prestige brands on the platform. Our aim is to provide data, best practices, and case studies to help managers achieve greater ROI on digital efforts. Like the medium we are assessing, our approach is dynamic. Please reach out with comments regarding our methodology and findings. 2% Twitter Source: GlobalWebIndex Q4 2013, Global Internet Top 10 Mobile Apps 2013 1 Facebook 103,420,000 27% Google Search 75,984,000 37% Google Play 73,677,000 28% 4 YouTube 71,962,000 27% 5 Google Maps 68,580,000 14% Gmail 64,408,000 29% 7 Instagram 31,992,000 66% 8 Maps (Apple) 31,891,000 64% 9 © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. YoY % Change 6 7. Analyst Estimate, Evercore, October 2013. 8. Olapic, January 2014. Average Unique Users 3 PAU SABRIA Co-Founder, Olapic pau@olapic.com App 2 SCOTT GALLOWAY Professor of Marketing, NYU Stern; Founder, L2 scott@stern.nyu.edu Rank Stocks 30,781,000 32% 10 Twitter 30,760,000 36% Source: Neilson, January 2014 3
  • 4. EXCERPT from the Intelligence Report: Instagram Intelligence Report: February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Instagram Instagram: User Growth December 2010–December 2013 160 Direct Messaging 150 million Advertising 140 130 million Video Sharing Number of users (millions) 120 100 million 100 100 million Online Profiles 90 million 80 million 80 Instagram switches to releasing Monthly Active Users rather than local number of users 60 50 million Facebook Acquires Instagram 40 million 40 Android App 20 15 million 10 million 1 million 0 Dec 2010 5 million Jun 2011 Sep Dec Apr May © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. Jul 2012 Sep Jan Feb Jun 2013 Sep Nov Dec 2014 4
  • 5. EXCERPT from the Intelligence Report: Instagram Intelligence Report: February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Instagram Brand List in Alphabetical Order by Sector BEAUTY Almay Aveda Aveeno Avon Bare Escentuals Benefit Cosmetics Bobbi Brown Burt’s Bees Carol’s Daughter Cetaphil Clarins Clinique CoverGirl Dove Elizabeth Arden EM Cosmetics Essie Estée Lauder Fresh Garnier Giorgio Armani Beauty Iman Cosmetics Kiehl’s L’OCCITANE en Provence L’Oréal Paris La Mer La Prairie La Roche-Posay Lancôme Laura Mercier MAC Cosmetics Make Up For Ever Mary Kay Maybelline New York NARS Cosmetics Neutrogena Nivea Olay OPI Origins Perricone MD Philosophy Proactiv Revlon Rimmel London Sally Hansen Shiseido SK-II Skinceuticals Smashbox Cosmetics Trish McEvoy Urban Decay Vichy Yves Saint Laurent Beauty Marc Jacobs Max Mara Michael Kors Oscar de la Renta Prada Ralph Lauren Saint Laurent Salvatore Ferragamo Tod’s Tommy Hilfiger Tory Burch Valentino RETAIL FASHION Alexander McQueen Alfred Dunhill Armani Balenciaga Bally Bottega Veneta Burberry Calvin Klein Chanel Chloé Christian Louboutin Coach Cole Haan Diane Von Furstenberg Dior Dolce & Gabbana Donna Karan Ermenegildo Zegna Fendi Gucci Hermès Hugo Boss Jimmy Choo Kate Spade Louis Vuitton 7 For All Mankind A|X Armani Exchange Abercrombie & Fitch Aéropostale Aldo American Apparel American Eagle Outfitters Ann Taylor Anthropologie ASOS Banana Republic Barneys New York Bath & Body Works BCBG Bergdorf Goodman Bloomingdale’s Blue Nile Bluefly Bon-Ton Boots Brooks Brothers Brown Thomas CB2 Century 21 Chico’s Club Monaco Crate & Barrel Daslu de Bijenkorf Destination Maternity Diesel Dillard’s El Corté Ingles El Palacio de Hierro Esprit Ethan Allen Express Fenwick Free People French Connection Galeries Lafayette Galleria Department Store Gap Godiva Chocolatier Guess GUM Gymboree H&M Harrods Harvey Nichols Holt Renfrew House of Fraser Hudson’s Bay IKEA Intermix J Brand J.Crew Jelmoli Joe Fresh John Lewis Juicy Couture KaDeWe Kay Jewelers La Maison Ogilvy La Rinascente Lacoste Lane Crawford © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. Le Bon Marche Liberty Lord & Taylor Lucky Brand Lululemon Athletica Lush Macy’s Marks & Spencer Massimo Dutti Neiman Marcus Net-A-Porter Nine West Nordstrom Pier 1 Imports Pottery Barn Printemps Restoration Hardware Saks Fifth Avenue Selfridges Sephora Shopbop Steve Madden Stuart Weitzman Swatch Talbots The Body Shop Topshop TSUM Tumi Ulta Uniqlo United Colors of Benetton Urban Outfitters Victoria’s Secret Vince Camuto Von Maur West Elm White House | Black Market Williams-Sonoma YOOX Zales Zappos.com Zara HOTELS Conrad Fairmont Hotels Four Seasons InterContinental Jumeirah JW Marriott Le Meridien Mandarin Oriental Morgans Park Hyatt Relais & Chateaux Rosewood Shangri-La Sofitel St. Regis The Peninsula The Ritz-Carlton Waldorf-Astoria Westin Montblanc Movado Officine Panerai Omega Pandora Patek Philippe Piaget Raymond Weil Rolex Swarovski TAG Heuer Tiffany & Co. Vacheron Constantin Van Cleef & Arpels WATCHES & JEWELRY Audemars Piguet Baccarat Baume et Mercier Bulgari Cartier Chopard David Yurman De Beers Fossil Harry Winston Hublot IWC Schaffhausen Jaeger-LeCoultre Longines 5
  • 6. EXCERPT from the Intelligence Report: Instagram Intelligence Report: February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Instagram Instagram By The Numbers ADOPTION 92% of prestige brands have an Instagram Monthly Active Users 150 million account 60% of users outside of U.S It took Instagram 1/2 the time of Twitter and 2 years less than Facebook to reach 150 million monthly active users In 2013 Instagram gained 60 millon+ new monthly active users Instagram’s Engaged User Base (Total Community Size x Engagement Rate) is 2x CONTENT ENGAGEMENT Facebook’s 66% YOY increase in Average Unique Users of the Instagram app in 2013 54% of all internet users post Instagram engagement is 15x Facebook’s 9 out of 10 Instagram video shares Average Time Spent Per User Per Month: 257 minutes occur on Facebook Seventy-two percent of prestige brands post Instagram videos Number of Comments Per Second: 1,000 Number of Likes Per Second: 8,500 Number of Likes Per Day: 1.2 Billion On average prestige brands post 6 images per week and 0.38 videos per week Engagement on prestige brand photo Total Photos Shared on Instagram to date: 16 Billion Average Photos Uploaded Per Day: 55 Million posts is 1.5x video posts 14% of prestige brands integrate 57% of users use Instagram 63% of prestige brands link to their instagram account from their brand per day 68% of Instagram’s users are women income greater than $75k use Instagram 2014 site 35% of users visit Instagram more than once 16% of online adults with household Instagram UGC on their brand site on a daily basis 1/2 of Instagram users are on Android; 1/2 are on iOS 90% of Instagram users are under 35 original photos and videos online 54% of prestige brands link from Facebook 99% of post engagement is from Likes Instagram’s 2014 revenues are forecast at to their Instagram account 2.5x more Instagram links than Vine’s are shared on Twitter $250-$400 Million Source: L2 Think Tank, Instagram, Global Web Index, Business Insider, Wall Street Journal, Pew Internet Research, UnRuly, Topsy, Twitter, Facebook, Evercore © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 6
  • 7. Intelligence Report: Instagram EXCERPT from the Intelligence Report: Instagram February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Key Findings Instagram: Average Size, Growth, and Engagement by Category Now…Instagram August 1–December 2013, n=232 2.5% Engagement Rate Ninety-three percent of prestige brands are present on Instagram, up from 63 percent in July 2013. Brands post an average of 5.5 times a week, and 43 percent of accounts post more than once a day. Ninety-nine percent of user engagement is likes. Retail and Fashion brands dominate the top 10 largest communities. For these categories, Instagram is an evolved form of window-shopping enabling users to see products on organic mannequins. Beauty brand accounts are the fastest growing and yield the greatest engagement. Cult Beauty brands Urban Decay, Essie, and Lush outperform the establishment. 2.5% Watches & Jewelry 1,749,178 Hospitality n=24 204,729 n=17 Specialty Retail 23,304,853 n=102 Beauty 3,626,363 n=53 Fashion 14,741,894 n=36 1.5% 1.0% 0% 50% 100% 150% 200% 250% Growth Instagram: Community Size vs. Engagement Fashion December 31 2013, n=173 Retail Beauty Watches & Jewelry Engagement Rate Logarithmic Scale 9.0% Essie Lush Maybelline Tiffany & Co. Urban Decay Michael Kors Nordstrom Jimmy Choo Victoria Secret Urban Outfitters 1.0% y=-0.001ln(x) + 0.0249 R2=0.08404 0.2% 0% 10,000 100,000 1,000,000 10,000,000 Community Size Logarithmic Scale © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 7
  • 8. Intelligence Report: Instagram EXCERPT from the Intelligence Report: Instagram February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Key Findings Instagram: Average Size, Growth, and Engagement by Region The Global Language of Pictures December 2013, n=249 4.0% 3.5% Engagement Rate Instagram is available in 25 languages and 60 percent of users reside outside the United States. Thailand’s Siam Paragon mall was the most Instagrammed place in 2013.9 Unlike other Western platforms, Instagram (inexplicably) has been allowed behind China’s “Great Firewall,” and content is sharable to China’s Sina Weibo and Japan’s Mixi. A burgeoning Instagram economy has emerged in Kuwait, selling everything from sheep to lipstick. Outside of the U.S., Brazil, The United Kingdom, Russia, and Mexico round out the top five countries accessing Instagram.10 Across prestige brand accounts Instagram’s visuals require little translation. In the last five months of 2013, prestige brand Instagram communities in Asia-Pacific, the world’s largest consumer market, quadrupled. Eastern European prestige brand communities, led primarily by Russian accounts, record the highest engagement. Eastern Europe n=45 3.0% 2.5% Latin America n=32 Middle East & Africa n=13 2.0% Western Europe n=43 APAC n=45 1.5% 1.0% 20% Topshop’s Russia account has 19,000 followers. North America n=46 40% 60% Average Growth From August to December, Kate Spade’s Thailand account grew 146 percent to 7,500 followers. 80% 100% Within 3 months of the integration, 50,000 Chinese linked their Instagram and Sina Weibo accounts. 9. “Thanks to Thailand’s snap-happy Instagrammers, one Bangkok mall is Instagram’s most photographed place in 2013,” Steven Millward, Tech in Asia, December 13, 2013. 10. Alexa, January 2014. © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 8
  • 9. EXCERPT from the Intelligence Report: Instagram Intelligence Report: February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Instagram Key Findings Insta-Video Instagram Engagement: Top 10 Videos Seventy-two percent of prestige brands post Instagram videos, up from 26 percent in July 2013. However, video posts account for only 4 percent of brand content. The expertise required to produce high quality short-form video remains a barrier for most brands. On average brand accounts post six images per week, versus less than one video post every two weeks (0.38 per week). Engagement on photo posts averages 1.5 times that of Instagram video posts. Reposted advertising and contest posts generate the most engagement. It is not a coincidence that the run time for Instagram videos is 15 seconds, the minimum length of a television commercial. It is rumored that the platform will sell Instagram video ads similar to television airtime. August–December 2013, Account > 5,000 followers 5.16% 4.87% 3.79% 3.71% 3.32% 3.12% 2.97% 2.90% 3.46% 2.89% Instagram Engagement: Photos vs. Videos August–December 2013, n=364, Account > 5,000 followers Photos Instagram Engagement: Top 10 Photos Videos August–December 2013, Account > 5,000 followers Advertisement 2.49% Contest 1.65% 1.27% 0.85% 45.22% 65.55% 25.17% 12.40% 0.05% 0.05% Average Like Engagement Average Overall Engagement Average Comment Engagement 11.77% © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 10.43% 8.36% 8.25% 7.48% 7.34% 9
  • 10. EXCERPT from the Intelligence Report: Instagram Intelligence Report: February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Instagram Key Findings Instagram Facebook Integration Facebook Integration Parent company Facebook serves as a promotion, content syndication and content solicitation vehicle for Instagram. Nine out of ten Instagram video shares occur on Facebook,11 and one percent of brand posts to Facebook are from Instagram.12 Slightly more than half of prestige brands feature a Facebook custom tab highlighting Instagram content. Percentage of Brands December 2013, n=249 89% 54% 12% Instagram Main Account Facebook Custom Tabs 9% 6% Promoted Instagram in Last 30 Days Solicited Instagram UGC in Last 30 Days Curating/Displaying Instagram Content Custom Tabs Select photos uploaded through Facebook are featured on The RitzCarlton Instagram account. Carol’s Daughter uses Facebook to promote Instagram-exclusive offers and page content and often reposts its followers’ Instagrams. Celebrating its loyalty program’s 30th anniversary, a Neiman Marcus contest uses Instagram hashtag #NMInCircle and a Facebook custom tab to accept submissions, display entries, and announce winners. 11. Unruly, October 2013. 12. “How Does Posting Via Instagram Impact Engagement on Facebook?” Edgerank Checker, October 23, 2013. © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. A Facebook photo album of pictures submitted by Cole Haan Instagram followers is among its most popular content and has been liked 2,300 times. 10
  • 11. EXCERPT from the Intelligence Report: Instagram Intelligence Report: To access the full report, contact membership@L2ThinkTank.com Instagram February 10, 2014 Table of Contents Click logo to return here. Click screen shots with this icon to view online! Click to jump to: 6 7 Brand List Instagram by the Numbers 8 10 11 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Now…Instagram KEY FINDING The Global Language of Pictures KEY FINDING Michael Kors IN THE COMPANY OF GENIUS Hashing It Out KEY FINDING Benefit Cosmetics FLASH OF GENIUS Insta-Video KEY FINDING Swarovski #InstaSparkle and Giorgio Armani #SiByArmani FLASH OF GENIUS Visual Commerce The Next Frontier KEY FINDING Visual Commerce = Conversion KEY FINDING West Elm FLASH OF GENIUS Urban Outfitters and Free People FLASH OF GENIUS Lancôme FLASH OF GENIUS Facebook Integration KEY FINDING White House | Black Market #WearWhatWorks FLASH OF GENIUS Instagram Advertising KEY FINDING Macy’s Floats Instagram Advertising FLASH OF GENIUS Starwood Hotels & Resorts Guest Galleries FLASH OF GENIUS Instagram Direct KEY FINDING Estée Lauder FLASH OF GENIUS 30 31 The Team About L2 © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 11
  • 12. Intelligence Report: Instagram EXCERPT from the Intelligence Report: Instagram To access the full report, contact membership@L2ThinkTank.com February 10, 2014 The Team Scott Galloway R. Danielle Bailey Aaron Bunge Professor of Marketing, NYU Stern Founder, L2 Scott is a Clinical Professor at the NYU Stern School of Business, where he teaches brand strategy and digital marketing, and is
the founder of L2, a think tank for digital innovation. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 250 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s Global Leaders of Tomorrow. L2 Danielle began her career at The Home Depot, Inc., where she led a variety of internal consulting engagements focused on supply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York Times Company, NBCUniversal, Disney/ABC, Maxim magazine, and Zagat. At L2 she has benchmarked the digital competence of brands spanning the specialty retail, public sector, pharma, wine and spirits, travel, and financial services industries. Danielle has a B.S. in Systems Engineering from the University of Virginia and an M.B.A. from NYU Stern. L2 Aaron is an art director who specializes in data visualization, collateral, branding and identity, packaging, and web design. His approach is aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. markets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University. Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. Qiuping (Andrea) Wang Pau Sabria Olapic Pau is co-founder and CEO of Olapic, a company that helps brands and retailers increase sales by integrating customer photos and videos into the shopping experience. Sabria studied Electrical Engineering at Universitat Politècnica de Catalunya in Barcelona and graduated with a thesis in distributed video coding at Purdue University, Indiana. He then joined The Boston Consulting Group, where he worked for 3 years and co-founded Olapic while completing his MBA at Columbia University. Maureen Mullen Director of Research & Advisory, L2 Maureen leads L2’s research and advisory practice, where she helped develop the Digital IQ Index®. She has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed-care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern. L2 Andrea has five years of working experience in telecom industry, helping brands like LG and Motorola develop integrated marketing communication strategies and campaigns for the Chinese market. During the MBA exchange program at NYU Stern she demonstrated a strong interest in digital marketing. She has a B.A. in Journalism and Communication from Peking University and an M.B.A. from Hong Kong University of Science and Technology (HKUST). Joy Duo L2 Joy holds a B.S. in Economics from University of International Business and Economics (UIBE) in Beijing and is currently a second year M.B.A student at ESADE Business School in Barcelona. She began her career as an analyst at Mercer Consulting, where she also led the Beijing office’s global client management. She recently completed the M.B.A exchange program at NYU Stern developing a strong interest in marketing and technology. She is also a part-time fashion editor, covering the Chinese fashion market and social media for a Milan-based business intelligence company. Nary Han L2 Nary is a designer specializing in data visualization, branding and identity. She has experience in areas ranging from motion graphics, interactive and environmental experiences, and graphic design. She has worked in many areas to design, conceive, and execute identities for several clients including Fidelity, Vivo Health & Wellness, and NASDAQ. She graduated with a B.F.A. from Parsons School of Design. Radhika Patel L2 Radhika Patel is a graphic designer who specializes in publication design as well as data visualization. She has experience in motion graphics, electronic media, experience design, and animation. Before joining the L2 team she worked at The Royce J. and Caroline B. Watts Museum in West Virginia. Radhika received her B.F.A. in Graphic Design from West Virginia University. A special thank you to Stasha Rosen, Jenny Shen, and Bing Wu. Carol Ho L2 Carol holds a B.Sc in Biomedical Science from King’s College London and an M.B.A. from the Hong Kong University of Science and Technology (HKUST). She began her career at Pfizer, where she led cross-functional teams to deliver global projects on regulatory approvals, streamline processes and establish the Asia hub. While pursuing her M.B.A., Carol worked part-time supporting the digital marketing and E-commerce functions for a luxury brand. © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 12
  • 13. EXCERPT from the Intelligence Report: Instagram Intelligence Report: February 10, 2014 To access the full report, contact membership@L2ThinkTank.com Instagram About L2 ? L2 is a think tank for digital innovation. Upcoming Events We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation. BR E A K FA S T & L U N C H :   I N S TAG R A M February 13, 2014 · New York City L U N C H :   S P I R I TS February 27, 2014 · New York City R ESEAR C H Digital IQ Index : The definitive benchmark for online competence, Digital IQ Index reports score ® ® brands against peers on more than 600 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses. L2 Collective®: Series of benchmarking reports designed to help member brands better understand resources, human capital, budgets, and priorities supporting digital strategies. BR E A K FA S T: EU BEA U TY March 5, 2014 · Paris March 7, 2014 · London C L I N I C : P R O G R A M M ATI C M E D I A March 11, 2014 · New York City EVENT S Forums: Big-picture thinking and game-changing innovations meet education and entertainment. LUNCH: HAIR CARE The largest gatherings of prestige executives in North America. March 18, 2014 · New York City 300+ attendees Clinics: Executive education in a classroom setting with a balance of theory, tactics, Upcoming Research: Q1 2014 and case studies. D I G I TA L I Q I N D EX ® R E P O RTS : 120 –180 attendees Beauty: France Working Lunches: Members-only lunches led by digital thought leaders and academics. Food Topic immersion in a relaxed environment that encourages open discussion. Beer 40–80 attendees Beauty: UK Spirits CONSULT ING Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Digital Roadmaps, Social Media Strategy, and Organizational Strategy engagements. MEMBER SHIP L 2 I N TE L L I G EN C E R E P O RTS : Amazon Mobile Tablets For membership info and inquiries: membership@L2ThinkTank.com © L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws. 13
  • 14. EXCERPT from the Intelligence Report: Instagram To access the full report, contact membership@L2ThinkTank.com A THINK TANK for DIGITAL INNOVATION 155 Wooster Street, 2nd Floor New York, NY 10012 L2ThinkTank.com info@L2ThinkTank.com © L 2 2014 L 2 ThinkTank.com Reproductions Prohibited This report is the property of L2 Think Tank. No copyrighted materials may be reproduced, redistributed, or transferred without prior consent from L2. L2 reports are available to L2 Members for internal business purposes.