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STATE OF SOCIAL 2012
PRESENTATION TO DEPAUL UNIVERSITY
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SOCIAL IMPACTS PURCHASE


         90:   Times per week the average person mentions a brand
               by name to family and friends
         67%: Consumer purchase decisions primarily influenced
              by WOM (the #1 overall factor)
         74%: Consumers who bought a competing product after
              hearing a negative recommendation
         90%: Consumers trust recommendations from someone
              they know; 70% trust the opinion of a stranger
         53%: People on Twitter recommend brands in their
              tweets with 48% of them making purchases




3
Page 3
SOCIAL LANDSCAPE




Page 4
SOCIAL COMMERCE



                                               SOCIAL MONETIZATION OVERVIEW:



                15%                            Who:   First-mover companies who are viewing their social
                                                      footprint as another opportunity to generate revenue

                                               What: Socially-driven or holistic shopping experiences
           Up to 15% of consumer spending            without going to a dedicated e-commerce site
           will go through Facebook within
            three to five years according to   Why:   Removes barriers and obstacles to completing a
                           IDC                        transaction when a consumer is most interested in a
                                                      product or service




Page 5
SOCIAL COMMERCE
              “Monetization will become the largest social trend. Our challenge is to credibly measure and
                                 advance social marketing’s impact on real outcomes.”
                                                                              Jeff Bodzewski, Aspen’s Director of Social Marketing
                                                                                                         Harvard Business Review




               Daily Deal Sites                          F-Commerce                              eCommerce Sharing
         Sharing and networks dictate savings   Complete shopping experience without            Integrated share functionality for
              at retailers and merchants         leaving a Facebook tab or newsfeed               unique products on a website




Page 6
SOCIAL ADVERTISING



                                              SOCIAL ADVERTISING OVERVIEW:



              $280.71                         Who:   Social networks are increasing the sophistication and
                                                     efficacy of ads to be both disruptive and seamlessly
                                                     integrated within the user experience

           Average revenue per order for US   What: Hyper targeting options allows advertisers to target
            advertisers generated by social         users based on self-identified attributes ranging from
              media, first among surveyed           employer to interests with ads that appear within
             channels, followed by display,         organic-originated content
              comparison sites and email
                                              Why:   Engages consumers in an environment they spend
                                                     hours each week while ensuring the right message is
                                                     being delivered to the right target based on self-
                                                     indicated data




Page 7
SOCIAL ADVERTISING
           Dedicated advertising reps at the largest social networks ensure we are delivering effective,
                 meaningful ads for clients while keeping us updated on new products/offerings




                Facebook                              LinkedIn                              Twitter
       Continuous evolution of CPC options    Rollout of CPC options beyond        CPF advertising complement paid
     including mobile and newsfeed options   banners, including “InMail,” with   trends and are more behavior based
               with more coming              significant B2B targeting options         than self-indicated data




Page 8
IMAGE SHARING



                                                 IMAGE SHARING OVERVIEW:



                  60+                            Who:   Entire self-contained social networks formed around
                                                        image sharing have skyrocketed in popularity based
                                                        on smart phone penetration and increasingly
                                                        sophisticated cameras to instantly upload images.
           Photos are posted to Instagram each
             second by the platform’s over 15    What: Pinterst (online), Instagram (mobile exclusive) and
                 million registered users              Digg (social sharing) among others have seen
                                                       adoption and ability to drive website traffic skyrocket
                                                       in addition to heightening engagement with brands.

                                                 Why:   Images originated by other consumers and brands
                                                        are used as “Gateways” to instantly determine
                                                        whether more information is desired or a
                                                        product/service resonates with a person’s own
                                                        interests.




Page 9
IMAGE SHARING
          Images are among the most powerful engagement tools for a brand – sometimes generated by the
                      brand and other times consumer-created – for both sharing experiences




                 Pinterest                         Consumer-Generated                         Social Bookmarking
     The photo album of the Internet allows      Instagram and dozens of other image       Images of brand interactions – from
     products, services and experiences to         sharing networks instantly capture      products to people – are among the
            be the focus of sharing           experiences, advertising, product and more      highest trafficked submissions




Page 10
MOBILE ENGAGEMENT



                                                 MOBILE ENGAGEMENT OVERVIEW:



            97MM+                                Who:   Mainstream US consumers who are increasingly using
                                                        mobile web, with some demos out-indexing CPU-
                                                        based web access

             consumers today are connecting      What: Mobile phone playing a larger role in purchase
             with the Internet via mobile, not         decisions, brand experiences and sharing with friends
            counting the 24MM tablet users in
                         the U.S.                Why:   Advances in smartphone technology and declining
                                                        consumer costs opened up this market to
                                                        increasingly meaningful experiences




Page 11
MOBILE ENGAGEMENT




          Augmented Reality                   Geo-Targeted Messaging                 Image Recognition
        Ability to layer brand-generated      Deploy brand-messaging via SMS      The next step after QR codes where
      content over real world experience to   based on geo-coordinates or push   phones push brand-generated content
          educate, inform or entertain              content via Bluetooth          based solely on visual (e.g. logo)




Page 12
HOW READY ARE EXECUTIVES?




  “In the digital space, with things   “I’m a heavy user of Twitter and             "Mayo Clinic believes… it is our
  like Facebook and Google and         Facebook, and… I interact directly with      responsibility to help
  others, we find that the return on   customers and employees. I watch trends      [consumers] use social media
  investment… can be much              and see news I’d miss otherwise.             tools to get the best information,
  more efficient.”                     Ultimately, I believe that Best Buy’s        connect with providers and with
                                       message has to be where people are.          each other, and inspire healthy
                                       Today, that means being on social            choices."
                                       networks.”



                                                                                 Source: eMarketer 2012
13 13
Page
SOCIAL VALUE PROPOSITION


          Add a new revenue stream

          Increase retention/reduce churn

          Capture personal data

          Increase awareness and intent

          Evaluate and apply real-time data

          Build loyalty and advocacy

          Extend the reach of marketing efforts

          Hyper-target based on self-identified data




Page 14
What’s Your Story?

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The State of Social 2012

  • 1. STATE OF SOCIAL 2012 PRESENTATION TO DEPAUL UNIVERSITY
  • 2. 2 2
  • 3. SOCIAL IMPACTS PURCHASE 90: Times per week the average person mentions a brand by name to family and friends 67%: Consumer purchase decisions primarily influenced by WOM (the #1 overall factor) 74%: Consumers who bought a competing product after hearing a negative recommendation 90%: Consumers trust recommendations from someone they know; 70% trust the opinion of a stranger 53%: People on Twitter recommend brands in their tweets with 48% of them making purchases 3 Page 3
  • 5. SOCIAL COMMERCE SOCIAL MONETIZATION OVERVIEW: 15% Who: First-mover companies who are viewing their social footprint as another opportunity to generate revenue What: Socially-driven or holistic shopping experiences Up to 15% of consumer spending without going to a dedicated e-commerce site will go through Facebook within three to five years according to Why: Removes barriers and obstacles to completing a IDC transaction when a consumer is most interested in a product or service Page 5
  • 6. SOCIAL COMMERCE “Monetization will become the largest social trend. Our challenge is to credibly measure and advance social marketing’s impact on real outcomes.” Jeff Bodzewski, Aspen’s Director of Social Marketing Harvard Business Review Daily Deal Sites F-Commerce eCommerce Sharing Sharing and networks dictate savings Complete shopping experience without Integrated share functionality for at retailers and merchants leaving a Facebook tab or newsfeed unique products on a website Page 6
  • 7. SOCIAL ADVERTISING SOCIAL ADVERTISING OVERVIEW: $280.71 Who: Social networks are increasing the sophistication and efficacy of ads to be both disruptive and seamlessly integrated within the user experience Average revenue per order for US What: Hyper targeting options allows advertisers to target advertisers generated by social users based on self-identified attributes ranging from media, first among surveyed employer to interests with ads that appear within channels, followed by display, organic-originated content comparison sites and email Why: Engages consumers in an environment they spend hours each week while ensuring the right message is being delivered to the right target based on self- indicated data Page 7
  • 8. SOCIAL ADVERTISING Dedicated advertising reps at the largest social networks ensure we are delivering effective, meaningful ads for clients while keeping us updated on new products/offerings Facebook LinkedIn Twitter Continuous evolution of CPC options Rollout of CPC options beyond CPF advertising complement paid including mobile and newsfeed options banners, including “InMail,” with trends and are more behavior based with more coming significant B2B targeting options than self-indicated data Page 8
  • 9. IMAGE SHARING IMAGE SHARING OVERVIEW: 60+ Who: Entire self-contained social networks formed around image sharing have skyrocketed in popularity based on smart phone penetration and increasingly sophisticated cameras to instantly upload images. Photos are posted to Instagram each second by the platform’s over 15 What: Pinterst (online), Instagram (mobile exclusive) and million registered users Digg (social sharing) among others have seen adoption and ability to drive website traffic skyrocket in addition to heightening engagement with brands. Why: Images originated by other consumers and brands are used as “Gateways” to instantly determine whether more information is desired or a product/service resonates with a person’s own interests. Page 9
  • 10. IMAGE SHARING Images are among the most powerful engagement tools for a brand – sometimes generated by the brand and other times consumer-created – for both sharing experiences Pinterest Consumer-Generated Social Bookmarking The photo album of the Internet allows Instagram and dozens of other image Images of brand interactions – from products, services and experiences to sharing networks instantly capture products to people – are among the be the focus of sharing experiences, advertising, product and more highest trafficked submissions Page 10
  • 11. MOBILE ENGAGEMENT MOBILE ENGAGEMENT OVERVIEW: 97MM+ Who: Mainstream US consumers who are increasingly using mobile web, with some demos out-indexing CPU- based web access consumers today are connecting What: Mobile phone playing a larger role in purchase with the Internet via mobile, not decisions, brand experiences and sharing with friends counting the 24MM tablet users in the U.S. Why: Advances in smartphone technology and declining consumer costs opened up this market to increasingly meaningful experiences Page 11
  • 12. MOBILE ENGAGEMENT Augmented Reality Geo-Targeted Messaging Image Recognition Ability to layer brand-generated Deploy brand-messaging via SMS The next step after QR codes where content over real world experience to based on geo-coordinates or push phones push brand-generated content educate, inform or entertain content via Bluetooth based solely on visual (e.g. logo) Page 12
  • 13. HOW READY ARE EXECUTIVES? “In the digital space, with things “I’m a heavy user of Twitter and "Mayo Clinic believes… it is our like Facebook and Google and Facebook, and… I interact directly with responsibility to help others, we find that the return on customers and employees. I watch trends [consumers] use social media investment… can be much and see news I’d miss otherwise. tools to get the best information, more efficient.” Ultimately, I believe that Best Buy’s connect with providers and with message has to be where people are. each other, and inspire healthy Today, that means being on social choices." networks.” Source: eMarketer 2012 13 13 Page
  • 14. SOCIAL VALUE PROPOSITION  Add a new revenue stream  Increase retention/reduce churn  Capture personal data  Increase awareness and intent  Evaluate and apply real-time data  Build loyalty and advocacy  Extend the reach of marketing efforts  Hyper-target based on self-identified data Page 14