shopping goes social

SHOPPING GOES SOCIALWhy consumers are turning to

social media before they hit the stores

1

has dramatically changed in the past 5 years.

Online shopping

2

With the rise of online product reviews, consumers now turn to social media for advice on what to buy.

3

To give you an idea of

the impact of social media...

No.1online activity is social networking.

5

of all time spent online is on

1/3

6

A quarter of U.S. adults have increased the amount of time they spend...

25%reading reviews

24%online shopping

Because of this, social spending is on the rise...

7

In 2010, advertisers spent almost

8

$1,700,000,000on social media marketing in the U.S.

...and it’s expected to grow 30.2% annually

9

However, 75% of women say ads on social networks

don’t encourage them to purchase.

10

So what does influence them?

$

Friends, family, and other shoppers.

Consumers trust consumer reviews

12x more than the manufacturer’s description.

11

70% trust the opinions of unknown users

trust recommendations from

people they know90%

12

and how does this affect purchasing decisions ?

13

Almost 50% of shoppers have made a purchase based on

a recommendation through a social media property.

74% of consumers rely on social networks

to guide purchase decisions

74%

14

found the advice to be influential in

their purchasing decision.

receive advice from friends and family relating to a product purchase through a social

networking site.81%

15

What happens to word of mouth?

16

The average consumer mentions specific brands

90 times / per week in conversations with friends, family, and co-workers.

Social media amplifies word of mouth

17

18

Over half a million tweets, 20% involve

asking and providing product information.

Especially on sites like

19

53% of people on Twitter recommend

companies and/or products in their tweets.

43%

20

deliver on their intention to buy the product.

18%

0

<

Users who follow brands on Twitter are nearly 18% more likely to purchase

something from that brand than those who follow a brand on Facebook.

22

Over

286,000haul videos act as

the ultimate “Shop & Tell”

or

23

So what are people buying online?

MOST POPULAR ONLINE PURCHASES

24

Books

ClothingDVDs, Games

Airline Tickets

Electronics

28%

24%16%

16%

16%

Social media

25

is ideal for in-depth product reviews and products that

require a demonstration.

Like...

26

Consumer Electronics

purchases, with 43.7% of purchases affected by word of mouth.

Online user reviews have the biggest

influence on consumer electronics

27

This YouTube beauty guru has

476,553

subscribers

Make up

28

Online Shoppers

67% of shoppers spend more online

after reading recommendations

from online community of friends.

or

29

So how influential are these online reviews?

of respondents had watched

a user-generated review.

30

64%

Source: a 2010 study by Internet Retailer

it helped them make a purchase decision- either for or

against a product or brand.

More than three-quarters of group said

31 Source: a 2010 study by Internet Retailer

listed the ability to see the product in action as their

favorite thing about video reviews.

81.3%

32

But can social media improve your bottom line?

33

...Oh yeah

are considered the most effective tactics for mobilizing consumers

to talk about products online.

34

Brands with the highest social media activity / reviews

18%increasedrevenues by

Blogs, Facebook, Twitter, and Reviews

35

So who’s doing a great job of this?

&

36

purchase them directly within the video.

Give individual demonstrations/explanations

of each piece and allow you to

37

22,000 site launches led to 800 orders (3.6% conversion rate)22,000

site launches led to 800 orders (3.6% conversion rate)

&

38

‘Deal of the Day

exclusive for

Facebook fans only

Haul videos

bring products to life with a first-hand demonstration and customer review

&

39

Great incorporation of

customer reviews / how-to videos take the risk out of buying products like soap online.

40

Orabrush reached out to

top YouTubers to have them make a video review of their product if they liked it.

&

41

The results...

42

Branding is what they say about you after you leave the room.“ ”

43

Are they saying the right things about your brand?