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© COPYRIGHT 2013

4 INFOGRAPHICS YOU NEED TO SEE…
Michael McGee, Head Honcho - Product & Experience, February 2013
1
© COPYRIGHT 2013

IF YOU ONLY LOOK AT 4 INFOGRAPHICS

THIS YEAR,

…THE FOLLOWING 4 WILL TELL YOU JUST ABOUT EVERYTHING YOU NEED TO
KNOW ABOUT SOCIAL MEDIA AND ECOMMERCE.

2
Graphic 1*

© COPYRIGHT 2013

*from a presentation at IGNITION: Future of Digital, Nov 27-28 2012 in NYC by Henry Blodget and Alex Cocotas
3
© COPYRIGHT 2013

WHAT IT MEANS:
SOCIAL MEDIA HAS REVOLUTIONISED ONLINE DISCOVERY – BUT ONLY WHEN IT
COMES TO HAVING FUN. WHEN PEOPLE WANT TO GET SOMETHING DONE, OR
SIMPLY GET SOMETHING, THEY STILL USE SEARCH.

SHOWING THEM ADS WHILE THEY’RE BUSY TRYING TO HAVE FUN DOESN’T
CHANGE THINGS BY MUCH.
SOCIAL MEDIA ISN’T GOOD

FOR PERFORMANCE ADVERTISING.

4
Graphic 2*

3 TYPES OF SOCIAL MEDIA

© COPYRIGHT 2013

Earned media
People talking
about
your brand

Value to Brands:

Owned media
Your brand pages
And accounts

Paid media
Ads,
sponsored tweets,
sponsored
stories
high
medium

low

Revenue for social
media platforms:

nil

*this is one I made myself
5
© COPYRIGHT 2013

WHAT IT MEANS:
WHEN YOUR AD AGENCY CREATES AN OFFLINE BRAND CAMPAIGN, IT’S A GIVEN
THAT YOU’LL BE PAYING HANDSOMELY FOR MEDIA PLACEMENT.
WHEN THEY CREATE A SOCIAL MEDIA BRAND CAMPAIGN, PAID SOCIAL MEDIA
PLACEMENT IS AT BEST A PERIPHERAL ELEMENT.
SOCIAL MEDIA WON’T MAKE SERIOUS REVENUE FROM BRAND ADVERTISING

6
Graphic 3*
© COPYRIGHT 2013

*WordStream Blog (wordstream.com) July 2011
7
© COPYRIGHT 2013

WHAT IT MEANS:
AT SCHOOL I LEARNED: IN PERFECT COMPETITION, PROFITS TEND TO ZERO
NOW IT SEEMS: IN PERFECT COMPETITION HIGHLY COMPETITIVE ONLINE
MARKETS (ESPECIALLY FOR FAIRLY HOMOGENOUS GOODS OR SERVICES)
PROFITS TEND TO ZERO GOOGLE
UNTIL SEARCH BEHAVIOUR CHANGES, GOOGLE’S REMAINS THE BEST
BUSINESS MODEL EVER

8
Graphic 4*
© COPYRIGHT 2013

*Adobe/emarketer.com Q3 2012
9
© COPYRIGHT 2013

WHAT IT MEANS:
WHEN THE ONLINE WORLD BECOMES AWARE THAT YOU HAVE A NEED, IT
ASSUMES YOU WANT TO BUY THE BEST OPTION AVAILABLE AT THAT MOMENT,

ASAP, ONLINE…
…WHICH IS WRONG AT LEAST 85% OF THE TIME.
THE $TRILLION-PLUS MARKET OF RETAIL INITIATED ONLINE AND FULFILLED
OFFLINE IS EXPLOITED BY A LIMITED NUMBER OF PLAYERS (E.G. GOOGLE,
GROUPON) IN LIMITED WAYS.
THERE IS A LARGE

OPPORTUNITY HERE

10
© COPYRIGHT 2013

11

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All you need to know about Social Commerce - in 4 infographics

  • 1. © COPYRIGHT 2013 4 INFOGRAPHICS YOU NEED TO SEE… Michael McGee, Head Honcho - Product & Experience, February 2013 1
  • 2. © COPYRIGHT 2013 IF YOU ONLY LOOK AT 4 INFOGRAPHICS THIS YEAR, …THE FOLLOWING 4 WILL TELL YOU JUST ABOUT EVERYTHING YOU NEED TO KNOW ABOUT SOCIAL MEDIA AND ECOMMERCE. 2
  • 3. Graphic 1* © COPYRIGHT 2013 *from a presentation at IGNITION: Future of Digital, Nov 27-28 2012 in NYC by Henry Blodget and Alex Cocotas 3
  • 4. © COPYRIGHT 2013 WHAT IT MEANS: SOCIAL MEDIA HAS REVOLUTIONISED ONLINE DISCOVERY – BUT ONLY WHEN IT COMES TO HAVING FUN. WHEN PEOPLE WANT TO GET SOMETHING DONE, OR SIMPLY GET SOMETHING, THEY STILL USE SEARCH. SHOWING THEM ADS WHILE THEY’RE BUSY TRYING TO HAVE FUN DOESN’T CHANGE THINGS BY MUCH. SOCIAL MEDIA ISN’T GOOD FOR PERFORMANCE ADVERTISING. 4
  • 5. Graphic 2* 3 TYPES OF SOCIAL MEDIA © COPYRIGHT 2013 Earned media People talking about your brand Value to Brands: Owned media Your brand pages And accounts Paid media Ads, sponsored tweets, sponsored stories high medium low Revenue for social media platforms: nil *this is one I made myself 5
  • 6. © COPYRIGHT 2013 WHAT IT MEANS: WHEN YOUR AD AGENCY CREATES AN OFFLINE BRAND CAMPAIGN, IT’S A GIVEN THAT YOU’LL BE PAYING HANDSOMELY FOR MEDIA PLACEMENT. WHEN THEY CREATE A SOCIAL MEDIA BRAND CAMPAIGN, PAID SOCIAL MEDIA PLACEMENT IS AT BEST A PERIPHERAL ELEMENT. SOCIAL MEDIA WON’T MAKE SERIOUS REVENUE FROM BRAND ADVERTISING 6
  • 7. Graphic 3* © COPYRIGHT 2013 *WordStream Blog (wordstream.com) July 2011 7
  • 8. © COPYRIGHT 2013 WHAT IT MEANS: AT SCHOOL I LEARNED: IN PERFECT COMPETITION, PROFITS TEND TO ZERO NOW IT SEEMS: IN PERFECT COMPETITION HIGHLY COMPETITIVE ONLINE MARKETS (ESPECIALLY FOR FAIRLY HOMOGENOUS GOODS OR SERVICES) PROFITS TEND TO ZERO GOOGLE UNTIL SEARCH BEHAVIOUR CHANGES, GOOGLE’S REMAINS THE BEST BUSINESS MODEL EVER 8
  • 9. Graphic 4* © COPYRIGHT 2013 *Adobe/emarketer.com Q3 2012 9
  • 10. © COPYRIGHT 2013 WHAT IT MEANS: WHEN THE ONLINE WORLD BECOMES AWARE THAT YOU HAVE A NEED, IT ASSUMES YOU WANT TO BUY THE BEST OPTION AVAILABLE AT THAT MOMENT, ASAP, ONLINE… …WHICH IS WRONG AT LEAST 85% OF THE TIME. THE $TRILLION-PLUS MARKET OF RETAIL INITIATED ONLINE AND FULFILLED OFFLINE IS EXPLOITED BY A LIMITED NUMBER OF PLAYERS (E.G. GOOGLE, GROUPON) IN LIMITED WAYS. THERE IS A LARGE OPPORTUNITY HERE 10