Social Commerce - the next big thing
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Transcript of Social Commerce - the next big thing
1
Social Commerce is…
the next big thing
Antony Hing
August 2011
For Students of
The Graduate School of Business
University of Technology Sydney
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About us
Who are we?
What do we do / occupations?
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Humans can’t help it: we need to belong
Seth Godin - Tribes
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Since the year 2000
The Global pie is bigger and easier to reach
Online Ad Market $0 to $200B pa by 2015
Internet users grow from 100M to 2Billion
Cloud gives social media: culture-changing
power as users top 1 billion
Emergence of sophisticated
‘cloud-based ecosystems’
(ie hardware, OS, Apps, Services)
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Cloud-based eco-system – Social Media
http://www.lumapartners.com/lumascapes/display-ad-tech-lumascape/
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Cloud-based eco-system Social Commerce
http://www.lumapartners.com/lumascapes/display-ad-tech-lumascape/
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Source: The Social Revolution Connecting with today’s customer - George Hsu and Brian Halligan
http://www.slideshare.net/HubSpot/social-revolution-connecting-with-todays-customer
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Social Commerce is attracting more competitors
Eugene Ware, Market Samurai
324 Million
Websites
“The scary thing is that most of the growth has occurred in the last 12 months”
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is making social networks more valuable
“If you don’t use social media
you won’t get traffic”
internet marketing plans must integrate
social media because Google has made
social content a ranking factor…
Michelle MacphearsonInternet Marketing Authority, 22 Feb 2011
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You & Social media – connect, engage, influence!
• Who uses it?
• Which sites?
• What tools?
• How often how long?
(This year v last year)
• What for?
• Following/followers?
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… how they shop,
live and learn
Source: The Social Revolution Connecting with today’s customer - George Hsu and Brian Halligan
http://www.slideshare.net/HubSpot/social-revolution-connecting-with-todays-customer
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Source: The Social Revolution Connecting with today’s customer - George Hsu and Brian Halligan
http://www.slideshare.net/HubSpot/social-revolution-connecting-with-todays-customer
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Source: The Social Revolution Connecting with today’s customer - George Hsu and Brian Halligan
http://www.slideshare.net/HubSpot/social-revolution-connecting-with-todays-customer
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Tablets will spread the ‘social cloud’ faster, wider
1 in 3 by 2015 will use tablets
When will your site be tablet-friendly?
See articles by Tim Bajarin for more information and analysis
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Super-charged word of mouth will determine
the success or failure of brands
The opportunity is: publish your way to success
The conversation around content is now king.
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Authorities
• Susan Rice-Lincoln
• Brian Solis
• Mari Smith
• Brian Halligan
• George Hsu
• Tim Bajarin
• James Schramko
• David Rogers - Columbia Business School
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Additional information and commentary: KPMG ViewPoint April 2011
Scott Cass-Dunbar and Sean O’Byrne
Social Commerce: $30B in 4 years to ‘$?’ in 6 to 10 years
Leaders are publishing their way
to success and claiming the
Trusted Authority space.
Why not you?
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Social Media impacts all areas of Marketing
Additional information and commentary: KPMG ViewPoint April 2011
Scott Cass-Dunbar and Sean O’Byrne
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Source: The Social Revolution Connecting with today’s customer - George Hsu and Brian Halligan
http://www.slideshare.net/HubSpot/social-revolution-connecting-with-todays-customer
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Who cares if the devil wears Prada?
“Fashion editors and department store buyers
have long had the biggest say in what parts of
designer collections make it to market.”
Disrupting the status quo:
– Fashionstake.com
– Polyvore.com
http://mashable.com/2011/06/19/social-shopping-fashion-production/
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ShoesOfPrey.com.au – what engage means!
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Case Study:
Can Australia launch a social network that
can bring positive change to the
global film industry?
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The Core Problem
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Film audiences struggle
to find films they like,
while filmmakers from
60+ industries worldwide
struggle to find their audiences
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Each year so few films gain release!
20,000+
1,100
Feature films produced yearly
Submitted at Festivals & Marts
Typical Cinematic Release
How is 1,100* new films for 660,000,000* people
• sustainable for thousands of excluded filmmakers?
• satisfying for tens of millions of movie-goers?
• desirable for the film industry?
How much bigger would the market be if more films were accessible?
• What of stories/documentaries that need to be told that aren’t gaining exposure?
• What of creating a better, even participatory experience of film?
* Data extrapolated from MPAA Theatrical Market Statistics 2009 and Marche Du Film Focus 2009 reports
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Movies are the most discussed category in social media circles - UM 2010
Yet there’s no globally prominent social network site dedicated to the global film
industry and film fans - unlike Flickr (photos), Last.fm (music), YouTube (videos)
I share opinions
I write / create content
I seek info when I need it
I seek info to keep up to date
Universal McCann Wave 5
Social networkers love to talk film!
~ 500 million share
opinions on film
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Conversation = the new exposure medium
“Of the thousands of independent films
produced around the world each year, the
vast majority get little or no distribution, left
to flounder in obscurity”
“If a diverse film culture is ever going to flourish, we have to
move towards a new model, where filmmaking is recognised as
an ongoing conversation between filmmakers and their audiences”
Ted Hope, producer of over 50 films
(eg American Splendor, 21 Grams, Adventureland)
Liz Rosenthal, Director of Power-to-the-Pixel,
and Strategy Advisor to the UK Film Council
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End of Project
Filmmaking: toward a social model
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Development
Green-light
Story
Create 30 sec
teaser
Compile film
comparatives
Assemble
creative team
Pitch to studios
& Distributors
Go No-Go
If yes continue
development
Attach Director
Create shooting
script
Attach voice
actors
Formation
Define &
establish
production
company
Prepare
develop-
ment activity
plan
Prepare
investment
offer
Raise finance
Announce
company to
domestic &
Inter-
national
distributors
Pre-production
Physical
production prep
Prep marketing
materials
Obtain banking &
insurance
facilities
Negotiate studio
& distribution
agreements
Plan & engage
pre-sales
Activate
completion bond
Complete final
pre-production
Production
Exercise
material
agreements
Music
Conduct
audience test
screenings of
workreel and
trailers
Post-production
Editing and post
production
Conduct audience
test screenings of
workreel and
trailers
Launch domestic
branding
Sell the open
global ancillary
markets &
international
territories
Delivery
Provide
advertising
stills, key
artwork and
music cue
sheets
Finalize key
production
and music
contracts
Deliver visual
& audio film
and trailer
masters
Organise chain
of title
documents,
copyright,
Rights and
Rights transfer
documents,
etc.
Engagement: starts earlier and continues from project to projectEngagement: starts earlier and continues from project to project
Engagement with the film audience increases
Film lifetime value and ‘next-project’ awareness
Build
Fan base
for next
project
The conventional approach
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1. the ‘social’ experience of film
The Opportunity: enriching the film experience
social media is the ideal platform
for this shared cultural activity.
Illustration: from Universal McCann – When did we
start trusting strangers?
2. discovery and access to new,
previously undistributed content
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When Film Goes Social: Project Borneo 3D
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Audiences ultimately determine film success
• Social media has built strong early-stage awareness
among millions of school kids, teens and their
families worldwide
• ‘Cast-Candidates’ submitting pitches using YouTube
have generated strong audience engagement
• United communities from all over the world share a
strong sense of involvement for a good cause:
saving Orang-utans and their forests.
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www.movr.com - enrich your film experience
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Trade Sales – some examples
estimated: US$50 - $100M
estimated: US$20 - $30M
US$280M all cash deal
In US$18.9B merger between
Vivendi Blizzard and Activision
US$700M – accumulated
700,000+ subscribers since
2005, subscribers pay US$58pa
US$8.5B
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~ >$50 billion
30 X its $2.34B
Funding
source: TechCrunch
Modelling The True Value Of Social Networks: 2009 Edition
http://www.techcrunch.com/2009/06/04/the-true-value-of-social-networks-the-2009-updated-model/32
valued at $10B
IPO US$8.9B
May 2011
Exit by IPO?
Median
$520M
Median
$520M
Median
$242M
Median
$242M
Median
$677M
Median
$677M
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1. The lure of social commerce is attracting more competitors
2. Cloud ecosystems are driving social commerce
3. iPads and Tablets will make the ‘social pie’ bigger, sooner
4. Changes at Google are favouring social media
5. It’s all about engagement, interaction, participation
6. The conversation around content is now king
7. Supercharged word of mouth will make or break brands
8. Leaders are publishing their way to success
9. Get prepared, skilled, practiced and connected
10. Better yet aim to become a trusted authority in your niche!
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Social Commerce – Key Points
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Thank you!
Antony HingCo-founder & Director
Email: [email protected]
LinkedIn:
http://au.linkedin.com/in/antonyhing
Web: www.movr.com