SHOPPING GOES SOCIAL           Why consumers are turning to       social media before they hit the stores1
Online shopping    has dramatically changed in the past   5   years.    With  the rise of online product reviews,    consu...
To give you an idea of    the impact of social media...3
No.1online activity is social   networking.
1/3    of all   time spent online is on5
A quarter of U.S. adults have increased the amount of time they spend...         24% 25%         online shopping          ...
Because of this, social   spending is on the rise...7
In 2010,   advertisers spent almost    $1700 000 000                ,                ,                       ,            ...
75%    However,          of women say ads on social networks    don’t encourage them to purchase.9
So what does influence them?     Friends, family, and other shoppers.                      $10
Consumers   trust consumer reviews       12x more than the manufacturer’s description.     70%    trust the opinions of   ...
and how does this affect   purchasing decisions ?12
74%                  of consumers rely on   social networks                          to guide purchase decisions     Almos...
receive   advice from friends and family     81%   relating to a product purchase through a social           networking si...
What happens to word   of mouth?15
The average consumer   mentions specific brands     90 times     in conversations with friends, family, and co-workers.    ...
Social media amplifies word of mouth17
Especially on sites like     Over half a million tweets, 20% involve     asking and providing product information.18
53%   of people on Twitter   recommend           companies and/or products in their tweets.19
43%   deliver on their intention   to buy the product.20
18%      0                                 <Users who follow brands on Twitter are nearly 18% more likely to purchase  som...
or     Over     286,000     haul videos act as     the ultimate “Shop & Tell”22
So what are people buying online?23
MOST POPULAR ONLINE PURCHASES           Electronics                                           Books                       ...
Social media     is ideal for in-depth product reviews and products that     require a demonstration.     Like...25
Consumer Electronics                      Online user reviews have the biggest                      influence on consumer e...
Make up               This YouTube beauty guru has               476,553               subscribers27
or Online Shoppers                          67% of shoppers                          spend more online                    ...
So how influential are these online reviews?29
64%                                              of respondents had watched                                               ...
81.3%                         listed the ability to see the product in action as their                         favorite th...
But can social media improve                                    your bottom line?32
...Oh yeah33
Brands with the highest social media activity / reviews     increased     revenues by                              18%    ...
So who’s   doing a great job of this?35
&     Give individual demonstrations/explanations     of each piece and allow you to     purchase them directly     within...
&                           22,000     22,000 site launches led to 800     orders (3.6% conversion rate)                  ...
&                                  o f the Day                        ‘ Deale for                        e xclusiv ans onl...
Great incorporation of     customer reviews     / how-to videos     take the risk out of buying     products like soap onl...
&     Orabrush reached out to     top YouTubers     to have them make a video     review of their product     if they like...
The results...41
“   Branding is what they say about you                                        ”         after you leave the room.42
Are they saying the right things about your brand?43
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Shopping Goes Social

  1. 1. SHOPPING GOES SOCIAL Why consumers are turning to social media before they hit the stores1
  2. 2. Online shopping has dramatically changed in the past 5 years. With the rise of online product reviews, consumers now turn to social media for advice on what to buy.2
  3. 3. To give you an idea of the impact of social media...3
  4. 4. No.1online activity is social networking.
  5. 5. 1/3 of all time spent online is on5
  6. 6. A quarter of U.S. adults have increased the amount of time they spend... 24% 25% online shopping reading reviews6
  7. 7. Because of this, social spending is on the rise...7
  8. 8. In 2010, advertisers spent almost $1700 000 000 , , , on social media marketing in the U.S. ...and it’s expected to grow 30.2% annually8
  9. 9. 75% However, of women say ads on social networks don’t encourage them to purchase.9
  10. 10. So what does influence them? Friends, family, and other shoppers. $10
  11. 11. Consumers trust consumer reviews 12x more than the manufacturer’s description. 70% trust the opinions of unknown users 90% trust recommendations from people they know11
  12. 12. and how does this affect purchasing decisions ?12
  13. 13. 74% of consumers rely on social networks to guide purchase decisions Almost 50% of shoppers have made a purchase based on a recommendation through a social media property.13
  14. 14. receive advice from friends and family 81% relating to a product purchase through a social networking site. found the advice 74% to be influential in their purchasing decision.14
  15. 15. What happens to word of mouth?15
  16. 16. The average consumer mentions specific brands 90 times in conversations with friends, family, and co-workers. / per week16
  17. 17. Social media amplifies word of mouth17
  18. 18. Especially on sites like Over half a million tweets, 20% involve asking and providing product information.18
  19. 19. 53% of people on Twitter recommend companies and/or products in their tweets.19
  20. 20. 43% deliver on their intention to buy the product.20
  21. 21. 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. 22. or Over 286,000 haul videos act as the ultimate “Shop & Tell”22
  23. 23. So what are people buying online?23
  24. 24. MOST POPULAR ONLINE PURCHASES Electronics Books 16% 28% Airline Tickets 16% 16% 24% DVDs, Games Clothing24
  25. 25. Social media is ideal for in-depth product reviews and products that require a demonstration. Like...25
  26. 26. Consumer Electronics Online user reviews have the biggest influence on consumer electronics purchases, with 43.7% of purchases affected by word of mouth.26
  27. 27. Make up This YouTube beauty guru has 476,553 subscribers27
  28. 28. or Online Shoppers 67% of shoppers spend more online after reading recommendations from online community of friends.28
  29. 29. So how influential are these online reviews?29
  30. 30. 64% of respondents had watched a user-generated review. More than three-quarters of group said it helped them make a purchase decision- either for or against a product or brand. Source: a 2010 study by Internet Retailer30
  31. 31. 81.3% listed the ability to see the product in action as their favorite thing about video reviews. Source: a 2010 study by Internet Retailer31
  32. 32. But can social media improve your bottom line?32
  33. 33. ...Oh yeah33
  34. 34. Brands with the highest social media activity / reviews increased revenues by 18% Blogs, Facebook, Twitter, and Reviews are considered the most effective tactics for mobilizing consumers to talk about products online.34
  35. 35. So who’s doing a great job of this?35
  36. 36. & Give individual demonstrations/explanations of each piece and allow you to purchase them directly within the video.36
  37. 37. & 22,000 22,000 site launches led to 800 orders (3.6% conversion rate) site launches led to 800 orders (3.6% conversion rate)37
  38. 38. & o f the Day ‘ Deale for e xclusiv ans only Fac ebook f Haul videos bring products to life with a first-hand demonstration and customer review38
  39. 39. Great incorporation of customer reviews / how-to videos take the risk out of buying products like soap online.39
  40. 40. & Orabrush reached out to top YouTubers to have them make a video review of their product if they liked it.40
  41. 41. The results...41
  42. 42. “ Branding is what they say about you ” after you leave the room.42
  43. 43. Are they saying the right things about your brand?43

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