Social Commerce - the next big thing

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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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Social Commerce - is the next big thing. Supercharged word-of-mouth makes 'the conversation around content king'. The lure of social commerce is rapidly attracting more and varied competitors. 10 point summary. By Antony Hing

Transcript of Social Commerce - the next big thing

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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