Convergence: How social commerce and mobile change the way we make decisions and shop
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Convergence: How social commerce and mobile change the way we make decisions and shop

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Technology is evolving in such a way that previously distinguishable digitalized information formats, services, applications, networks, and business models are blending in ways that reduce ...

Technology is evolving in such a way that previously distinguishable digitalized information formats, services, applications, networks, and business models are blending in ways that reduce distinctions. Furthermore, the lines are being blurred between on and offline activities—technology, specifically that which is based on social interaction, is merging with every facet of life

As the way in which we consume and interact with information continues to evolve, brands and retailers in particular, must establish and maintain engagement with consumers at multiple information intersections. (For example mixing business/marketing content with personal/user generated content, or building campaigns that are screen agnostic)

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Convergence: How social commerce and mobile change the way we make decisions and shop Presentation Transcript

  • 1. Convergence:How social commerce and mobilechange the way we make decisionsand shopSocial Media Week NYC 2011@saatchiwellness#smwsaatchi
  • 2. • If you scanned this QR code, you just witnessed the power of convergence• Without even realizing it- you‘ve used multiple previously distinguishable technologies
  • 3. Converge:To tend or move toward one point or oneanother : come togetherTo come together and unite in a commoninterest or focus Merriam- Webster
  • 4. Does Convergence look like this?Jackson Pollok‘s Convergence: Number 10; 1952
  • 5. The merging of distinct technologies, industries, or devices into a unified whole– there are examples all around us• Multiple sources of information , which align at different touch points• Information exchange is ongoing and happens in real time• The way we encounter information has changed- discovery through the newsfeed
  • 6. This is the way we used to look for directions
  • 7. Travel directions today…
  • 8. We live in an increasingly more digitized world• eBook sales have more than doubled from 2009 to 2010• eBook sales grew 163% between January and August 2010, up from $89.8 million in 2009 to $263 million in 2010• eBooks now make up 9.03% of total consumer book sales - compared to 3.31% at the close of 2009• Since 1971, Project Gutenberg has been digitizing books and offering these online for free-- they have over 33,000 free books available today American Association of Publishers
  • 9. The availability and our access to information isimmenseWe are in fact becoming smarter because we arealways connected
  • 10. Chris Anderson, Head of TEDconferences calls this ―CrowdAccelerated Innovation‖• Bring enough people with a common interest together and they will start to share and compete and improve• He points to a dance video online which spurs other dancers to create videos that top the first
  • 11. Convergence can be understood in terms ofthe following developments: The merging of multiple channels onto a single application, device or service (i.e. broadcasting, telephone, television, motion pictures, photography, printed text and money)
  • 12. • 38MM people watched on TV, 70 MM watched online• Facebook averaged 8,500 FB updates/min during the inauguration• At its peak, CNN served 1.3 million concurrent live streams
  • 13. Video and social media continue to be some of ourgovernment‘s most important communication tools
  • 14. The lines of communications are blurred–it‘s hard to tell where one ends and one begins
  • 15. There is a growth in the interactivity and connectednessof different networks, information platforms and devices
  • 16. Our hardware today is smarter– HandheldConvergence
  • 17. There is growing amount of overlap in the functions that canbe performed by different devices– iPhone is also a ―businesscard‖
  • 18. • Convergence is redefining our expectations• Breaking the mold for information formats and the way we interact with information• We are in the midst of a ―digital renaissance‖ (MIT Professor Henry Jenkins)
  • 19. ―…the pace of change of our human-created technology is accelerating and its powers are expanding at exponential pace.‖ - Ray Kurzweil
  • 20. talk to me I‘ll make the reservation I just got your email It‘s on the next block Friend me I downloaded the photosWe are living in a world where we are perpetually plugged in,which is driving the development of new types of business modelsthat take advantage of the potential and new value created21
  • 21. Mobile Convergence • Ubiquitous nature of mobile devices • New technologiesUnlocking a new typeof potential and value
  • 22. Geo-locationOur devices are so smart, that they know where we are• ―Checking-in‖ draws on a competitive mentality• Leverages the social graph as a powerful promotional tool
  • 23. Geo-locationAs a consequence, we become hyper-aware of oursurroundings- It‘s the mashing of content and context
  • 24. Shopping According to the WSJ, 2010 was the year of the app--fostering a culture of “now-ism”, of instant gratification
  • 25. Holiday Shopping 2010• 52% of U.S. Smartphone users planned to use their phone to compare prices during the holiday season – Google Blog• 40% planned to use their phones to read product reviews- Google Blog• eBay mobile sales reached $230M during the holiday, up 166%- eBay
  • 26. Near Field CommunicationsAllows a device to collect data from another device or NFC tag at close range-- Opens up huge potential for mobile payments
  • 27. Mobile PaymentsThe number of mobile payment usersworldwide increased to 73.4 million in2009, roughly a 70% increase over 2008,and could breach 190 million by 2012(Forbes, December 2010)
  • 28. ―E-commerce is Over. Long Live Social Commerce‖ -Wired February 2011
  • 29. Social Commerce• The selling with social media• There are generally two type of social commerce: – Shopping on a social media page (i.e. Facebook tab) – Social media incorporated into an e-commerce page (product reviews)• Product discovery and purchase decisions are informed by the collective and distributed social intelligence of peoples‘ social graphs• Transaction as communication – ―shop-and-tell‖
  • 30. ―If I had to guess, social commerce is thenext area to really blow up‖ - Mark Zuckerberg
  • 31. 2010 saw an explosion of group shopping sites that relied on the viral nature of crowd behavior
  • 32. • Social commerce helps people realize the value expression of shopping— what psychologists call ‗impression-management’ – aka bragging rights, ego-tripping• We discover brands and products through our online social network—not dissimilar from how we would discover these offline
  • 33. Convergence and Social Commerce• 90% of purchases are subject to some sort of social influence• Value-expression function of shopping• Make smarter shopping decisions using their social intelligence
  • 34. Source: Oracle Retailing Blog
  • 35. Convergence Smarter hardware and software On-demand Greater access to consumerism information Crowd accelerated Constantly innovation connected Info discovery Smarter People Culture of Now-ism
  • 36. ―Welcome to convergence culture, where old and new media collide, where grassroots and corporate media intersect, where the power of the media producer and the power of the media consumer interact in unpredictable ways‖ – Henry Jenkins
  • 37. THANK YOUSocial Media Week NYC 2011@saatchiwellnessWilliam MartinoSVP, Director of Digital StrategyV 212.463.2524william.martino@saatchiwellness.comSharon MandlerSr. Digital StrategistV 212.463.4746Sharon.Mandler@saatchiwellness.com