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The impact of social media on purchase behaviour
1.
The impact of
social media on purchase behaviour 30 June 2010
2.
• Half a
century of developing • Actively managed and deeply panel research profiled panels • Unparalleled global reach • Experienced online and scale sampling experts • Commitment to data quality • Thought leader in the industry Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
3.
Proprietary Panels in
24 Countries Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
4.
The Global Web
Index is a twice yearly web usage study to 32,000 consumers across 16 countries which quantifies global web trends and the massive impact of social media 16 markets represent 70% of the global web pop (780m users) Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
5.
Global Web Index The
Global Web Index provides a global perspective on web usage, particularly how it impacts: ◦ Consumer behavior ◦ Marketing communications ◦ Purchasing ◦ Attitudes and outlook • The Global Web Index is an attitudinal tool that provides timely global usage trends of online social media Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
6.
Social Media Involvement
7.
How many people
are on social web by country 292.7 million Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved. 7
8.
Consistent patterns across
age groups Behaviour online – last month. You will now see a list of items that represent different activities you can do online. Please read each one carefully and then indicate whether you have done that in the past month, or whether you have done it longer ago. Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
9.
BRIC markets lead
the trend for active social involvement 70% Blog focused Social Network focused Manage a social network profile Written your own blog 60% % Have done in the last month 50% 40% 30% 20% 10% 0% Behaviour online – last month You will now see a list of items that represent different activities you can do online. Please read each one carefully and then indicate whether you have done that in the past month, or whether you have done it longer ago. Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
10.
Germany and UK
are most purchase orientated Motivations for involvement: Very important Below are various reasons why you use the Internet. Please think about how important these reasons are for you using the Internet. Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
11.
Copyright © 2010
Lightspeed Research. Proprietary and Confidential. All rights reserved.
12.
Following the hype…
Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
13.
For business is
it all about … ? Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
14.
High awareness in
the UK Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
15.
Source: Global Web
Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
16.
Why so much
hype? Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
17.
Social web is
still bigger Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
18.
Reality is still
task based Global perspective: Motivations for involvement: Very important Below are various reasons why you use the Internet. Please think about how important these reasons are for you using the Internet. Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
19.
Motivations are fundamentally
different by market Brazil China Russia UK USA Research how to do Stay in touch with Stay up to date on Research / find Research / find things friends news / events products to buy products to buy Stay up to date on Stay up to date on Stay in touch with Stay in touch with Stay up to date on news / events news / events friends friends news / events Research how to do Stay in touch with Research for work Research for work Research for work things friends Research / find Stay up to date on Research how to do Education Entertainment products to buy news / events things Stay in touch with Research / find Research how to do Entertainment Entertainment friends products to buy things Research / find Fill up spare time Networking for work Research for work Research for work products to buy Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
20.
Should brands care?
21.
Contributors shape your
brand Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
22.
Where is the
biggest impact on consumers? Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
23.
Social information affects
us all Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
24.
People trust online
consumers.. Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
25.
Search motivations show
purchase skew You will now see a number of online activities that you currently take in. For each one, please can you Motivations to use a search engine select the main reasons you partake in that activity online? Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
26.
AND We research
everything online % of buyers who researched prior to purchase (offline and online) Source: Global Web Index Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
27.
So how can
brand opinions be improved? 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% A face to face recommendation Television advert A recommendation online from a contact / friend A website created by the brand The results on a search engine France Newspaper or magazine story featuring the brand Newspaper advert Germany A direct mail sent to your house An email sent to you from a company or brand UK Magazine advert USA Sponsorship of a major event e.g. sports or music concert Film or television programme featuring the brand Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved. 27
28.
Your brand is
in their hands… Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
29.
Even before they
get to your site… Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
30.
Key points Copyright
© 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
31.
So how can
brands use social media?
32.
Growing appetite for
brand relationship Offer discounts Provide me with new ideas and thinking Provide free downloads to content that I like e.g. music / film Provide relevant news and analysis Create useful online applications that provide a benefit Create competitions Advertise in places that are relevant to you Create an online community Create live events e.g. music concerts Create videos / TV shows Sponsor my favourite sports team Create live events where I can use the product Create a real life community where I can meet similar people Create a platform for you to interact with the company or staff directly e.g. blog /… Associate with celebrities that I like Sponsor my favourite website UK Germany 0% 20% 40% 60% 80% Europe: Role for brands Please think again about the same brand. Below are list of activities that the brand can implement. Which of the following actions are most relevant to you as a person? Where 1 = not at all relevant and 5 = very relevant Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved. 32
33.
They want to
be involved… Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
34.
What improves your
opinion of a brand? Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
35.
Although not all
sectors have same demand Source: Global Web Index Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
36.
Needs to be
part of the mix Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
37.
Even within sectors, there
are differences
38.
Track web habits
of types of brand owners Owners, web activity last month Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
39.
Assess how brands
should engage owners online Owners, relevant brand activity. Score 4/5 relevant to me 1-5 scale Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
40.
Assess how brands
should engage owners online Owners, relevant brand activity. Score 4/5 relevant to me 1-5 scale Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
41.
Looking at some examples?
42.
Talk on a
one to one basis Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
43.
Promoting the human
face Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
44.
Real time customer
engagement Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
45.
Listen to what
is said and take note Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
46.
Reward Copyright © 2010
Lightspeed Research. Proprietary and Confidential. All rights reserved.
47.
Involve your customers
Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
48.
Involve the most
important people, your customers Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
49.
Copyright © 2010
Lightspeed Research. Proprietary and Confidential. All rights reserved.
50.
Get your fans
to work with you Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
51.
Use the feed
back proactively Example: Homebase “Ratings and Review” system Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
52.
Thank your customers Social
media has given the consumer a voice and the overlap in digital / physical campaigns has provided a vehicle for brands to harness this voice. Example: Wispa decided to thank their fans for all their support putting them at the heart of all their campaigns. Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
53.
Summary
54.
Now: Digital networks
are bigger than face to face USA UK Russia Face to Brazil China face 22.8 21.4 17.1 friends 24.1 24.4 Brazil Russia USA UK China Social 31.2 38 Network 42.8 49.3 Friends 51.5 NETWORK SIZE: How many people you stay in touch with Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
55.
Networks of strangers:
comfortable with the unknown 9%* 3%* 0.3%* Facebook LinkedIn Twitter *Percentage of people I would phone up for a beer Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
56.
That network will
become Augmented Reality Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
57.
Social will inform
everything and everywhere • Immediate social group • Connected group • People like me • Actions, behaviour and reviews will be overlaid on our real life experience Copyright © 2010 Lightspeed Research. Proprietary and Confidential. All rights reserved.
58.
Thank you Ralph Risk,
Lightspeed Research rrisk@lightspeedresearch.com Twitter: rrisk June 2010
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