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commerce




Presented by   Audio Options:                                       Exclusive Media Partner   Powered by
               Listen to the presentation using your computer
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Speakers




  Thomas Crampton             John Stauffer             Brian Giesen
  @thomascrampton             @johnstauffer              @bdgiesen
    Asia-Pacific Director   Regional Strategy Director   Regional Director
    Ogilvy | Hong Kong       Ogilvy | Hong Kong          Ogilvy | Sydney




    commerce
Questions and Comments

              @ogilvyasia!


                or!


   commerce
Quick Poll


   What	
  city	
  are	
  you	
  dialing	
  in	
  from?




    commerce
“If I had to guess, social
                              commerce is the next area to
                                       really blow up”
                                     -Mark Zuckerberg




Source:	
  h*p://www.flickr.com/photos/briansolis/2696198607/	
  

                commerce
AGENDA!



           The Power of
           Commerce in    What is F
                  Asia    Commerce?

           Case Studies   Getting Started




commerce
AGENDA!



           The Power of
           Commerce in    What is F
                  Asia    Commerce?

           Case Studies   Getting Started




commerce
Expected e-commerce growth by
region from 2010-2013
  Numbers	
  in	
  Billions	
  

                                                                                      283.0	
  
                                                                          195.2	
                                     323.1	
  
                      235.3	
                                                                    Europe	
  
                 165.8	
  
                                      U.S.A.	
                                                   13.2%        155.7	
         Asia	
  

                                      12.4%                                                                                   27.5%

                                                           121.7	
  Rest	
  of	
  World	
  
                                                        55.8	
  
                                                                           29.7%
                                                                                                                          963.0	
  

                                                                                                                  572.5	
             Global	
  
                                                                                                                                      19.4%
h*p://www.internetretailer.com/2011/01/04/global-­‐e-­‐commerce-­‐sales-­‐head-­‐1-­‐trillion-­‐mark	
  


                      commerce
The Web will be involved in 53% of
total retail sales by 2014




Source:	
  Forrester	
  

                       commerce
Facebook’s Exponential Reach for Brands

                      750 million users




                           Friends of Friends
                                                Friends of fans: 60M


                                Friends
                                                Fan Base: 500K



Source: SocialBakers.com


                commerce
F-Commerce and Social Media


              68%	
                                          3	
                 10%	
  

         Say they use social                           The top 3 brands on       Average Facebook
      networks when shopping                          Facebook sell directly   store sees 10% month
               online                                    on the platform        to month increase in
                                                                                    transactions


Source: Forrester/Shop.org, socialcommercetoday.com


                commerce
F-Commerce and Social Media


               75%	
                                      25%	
   7-­‐10%	
  

             75% on Facebook                            25% of customers
               have ‘Liked’ a                         connect with brands to   Cart Values are 7-10%
                brand page                              receive discounts       higher via Facebook




Source: Forrester/Shop.org, socialcommercetoday.com


                commerce
Social Commerce Market Size
(US	
  Billions)	
  
                                                                                             $30	
  


                                                                                   $21	
  
                                                            CAGR	
  =	
  43%	
  

                                                                  $14	
  

                                                   $9	
  

                          $5	
  




Source: Forrester, GP Bullhound, Booz & Company Analysis


                       commerce
Quick Poll


   Would	
  you	
  purchase	
  physical	
  goods	
  
   off	
  of	
  a	
  social	
  networking	
  site	
  like	
  	
  
   Facebook?	
  




    commerce
Survey says…
   Would you purchase physical goods off of a social networking site like Facebook?




                                X                                ✓	
  
                                                     Note: Those not willing to purchase goods largely
                                                     expressed concerns related to Security and Privacy.




Source: Booz & Company survey


              commerce
AGENDA!



           The Power of
           Commerce in    What is F
                  Asia    Commerce?

           Case Studies   Getting Started




commerce
Commerce


       F-Commerce means
  selling goods or services
           using Facebook. 

  F-Commerce is a driving
          force behind the
     intersection of social
           networking and
                 business. 



Source: Altimeter Group


                 commerce
Five Benefits of
         “Social” Shopping
           on Facebook
Source: Altimeter Group


                 commerce
Insight
           Facebook stores on the brand
           pages of Proctor & Gamble are
           used as a “live-learning-lab” to
           help the business understand how
           consumers interact with their
           brands and technology in real life,
           opposed to via artificial surveys and
           sterile focus groups. 




commerce
Brand Experience
Increasingly, when asked why they
connect with brands on Facebook,
consumers say it is to shop and for
deals. By adding a store to their
Facebook page, a brand improves
the experience and delivers at this
touch point. 




         commerce
Loyalty
Brands are using F-commerce to drive brand loyalty and increase propensity
to repurchase – relative to competitors by offering loyal brand fans a privilege
point of purchase. 




       commerce
Advocacy
           Using Facebook stores to get products into the hands
           of the people most likely to recommend them, their
           fans. By supporting each other via digital technology,
           consumers create their own loyalty loop with the brand
           that may promote repurchase. 
commerce
Facebook ROI
As the central component of any
business case, ROI is a financial measure.
One way to measure Facebook ROI is to
link investment in Facebook to sales. E-
commerce enabled Facebook brand
pages help make this possible.




       commerce
AGENDA!



           The Power of
           Commerce in    What is F
                  Asia    Commerce?

           Case Studies   Getting Started




commerce
Commerce

                          On	
  Facebook 	
  	
                   With	
  Facebook	
  

                           F-stores                                 Facebook ads
                           Facebook e-commerce stores where         A variety of advertising methods are
                           shoppers can purchase real goods         available depending on how brands
                           with real currency without leaving       want to reach fans (through friends of
                           Facebook.                                friends or targeted marketing).


                           Facebook Credits                         Custom Apps
                           The mandatory currency used for          Users can create games, stores, and
                           games and in-app virtual goods.          other engaging features for
                           Recently being used for real goods       promotional purposes or to provide
                           with Deals on Facebook.                  uniquely branded experiences to fans.


                           Facebook Deals                           Facebook Places
                           Share experiences as opposed to just     Local retailers drive in-store traffic by
                           discounts. Consumers pay inside          offering special discounts to consumers
                           Facebook with a credit card, PayPal,     who check in to their location with
                           or Facebook Credits.                     Facebook places on their mobile.




Source: Altimeter Group


                 commerce
On	
  Facebook
                            F-Stores
                   BAHN	
  




                                        Ticket sales and runs




                 commerce
On	
  Facebook
                            F-Credits




                 commerce
On	
  Facebook
                            F-Deals



                                       Drive sales through
                                       exclusive Facebook
                                              Deals




                 commerce
With	
  Facebook
                          F-Ads

                                    Facebook Ads appear as banner
                                    ads on the right hand side of the
                                     platform. Brands can track the
                                     value of a fan arriving on an e-
                                   commerce site from a Facebook ad




               commerce
With	
  Facebook
                          Custom Apps




                          Create Custom Apps to drive sales


               commerce
With	
  Facebook
                          F-Places




               commerce
AGENDA!



           The Power of
           Commerce in    What is F
                  Asia    Commerce?

           Case Studies   Getting Started




commerce
F-Commerce Framework


   DISCOVERABLE
                                 EXCLUSIVE
                                ENGAGING

Brand pages must be easy to find             Brands should keep exclusive            Using a content calendar, brands
  and also integrated with other           content/ value behind fangate,               should encourage 2 way
        brand digital assets 
             Visitors must first like the brand       conversations to maximize organic
 (e.g. social plug-ins on website)
        page before seeing its content	
           word of mouth on Facebook


                                                    CONVERT!	
  


                         Word of mouth generated by engagement will spread content out to
                           the friends-of-friends circle for better discovery and exposure	
  




             commerce
F-Commerce Tactics


 DISCOVERABLE
                                      EXCLUSIVE
                                ENGAGING

                                               -Fans only photos
 - Better brand page name + URL
                                                         - Conversation calendar 
                                               -Fans only contests
 - Social Plugins on official website
                                                    - Embrace fans’ comments
                                               -Fans only information about brand
 - Facebook ads
                                                                         - Highlight fan-generated content
                                               -Fans only benefits
 - Work with other brand pages
                                                          - Ask questions
 - Work with influencers
                       -Fans only offers or discounts to
                                                                                         - Be their friends
                                               convert sales/ leads

                                                       CONVERT!	
  


                            Word of mouth generated by engagement will spread content out to
                              the friends-of-friends circle for better discovery and exposure	
  




            commerce
Likes: The Fangate


                                        IKEA Summer Sale! Over 1,000
                                          products as low as 60% off




Source: www.facebook.com/ikeahongkong


               commerce
Explore and Adapt




Source: www.facebook.com/marketing


                commerce
Show and Tell


                 DIESELCAM




    commerce
Exclusive Content




Source: www.facebook.com/marketing


                commerce
Calls to Action




Source: www.facebook.com/marketing


                commerce
Sponsored Stories Driving Purchase"



                          160%
                           lift in brand recall


                          200%
                       lift in message awareness


                          400%
                         lift in purchase intent




    commerce
F-Commerce Landscape
                           Facebook                     Operating                                    Additional
                                                                             Features
                           Storefront                   Platform                                   Key Information




   Customizable              Checkout       Like/       On         Off     Apps   Analytics   Price             Large      Small
                            On Facebook   Comment/   Facebook   Facebook                                       Business   Business
                                            Share



          •                     •           •          •          •                  •                           •
                                                                                                       *	
  




                                                       •                   •                  $$	
               •          •
          •                     •           •          •                                      $$$                •
                                •           •          •                                       $                 •          •
          •                     •                      •                             •         $                 •          •
          •                     •                      •          •        •         •                           •
          •                     •           •          •          •                  •         $                 •          •
          •                     •           •          •                   •         •        $$                 •          •
          •                     •           •          •          •        •                                     •          •
   *Revenue	
  Share	
  

   commerce
Facebook Measurement Model


           REACH
                        ENGAGEMENT
                              ACTION

•  Number of fans for brand pages   •  Number of discussion topics     •  Click through rates for
                                                                          advertisements
                                    •  Number of wall posts on brand
•  Number of brand mentions on         page
   walls                                                               •  Number of contest entries
                                    •  Number of wall posts
•  Number of news updates x fans                                       •  Number of applications
                                    •  Number and tone of reviews         downloaded
                                       posted
•  Ad impressions
                                    •  Amount of content or offers     •  Offline actions driven by coupons
                                       shared                             or special offers

                                    •  Video views                     •  Web traffic generated




            commerce
The Most Awarded Social Media Agency in APAC	
  
                           The	
  Holmes	
  Report	
  Awards	
                                             Click	
  Awards	
  

                           •  2011:	
  APAC	
  Digital	
  Consultancy	
  of	
  the	
  Year	
               •  2010:	
  Integrated	
  Marke`ng	
  


                           IPA	
  EffecIveness	
  Awards	
                                                  WPPed	
  Cream	
  Awards	
  

               commerce    •  2010:	
  Bronze	
  award	
  for	
  “How	
  Branding	
  Generated	
  
                              Sales,	
  Even	
  in	
  a	
  Recession”	
  
                                                                                                           •  2010:	
  Best	
  Consumer	
  Marke`ng	
  

                                                                                                           ITSMA	
  MarkeIng	
  Excellence	
  Awards	
  
                           Asia	
  Pacific	
  PR	
  Awards	
                                                •  2010:	
  Most	
  Effec`ve	
  Public	
  Rela`ons	
  (Diamond)	
  
                           •  2010:	
  Best	
  Use	
  of	
  Digital	
  x	
  3	
  
                                                                                                           IBM	
  Global	
  Best	
  PracIce	
  Awards	
  
                           •  2009:	
  Best	
  Use	
  of	
  Digital	
  
                                                                                                           •  2010:	
  Best	
  CFO	
  Case	
  Study	
  (Silver)	
  
                           Asia	
  MarkeIng	
  EffecIveness	
  Awards	
                                     •  2010:	
  Best	
  Impact	
  in	
  Regional	
  Ac`vity	
  Using	
  Social	
  
                           •  2010:	
  Most	
  Effec`ve	
  Public	
  Rela`ons	
                                Media	
  (Bronze)	
  
                                                                                                           •  2010:	
  Values	
  Award	
  
                           Ogilvy	
  Professional	
  Achievement	
  Awards	
  
                           •  2010:	
  Best	
  in	
  Digital	
  Influence	
  (Taiwan)	
                     MicrosoX	
  MarkeIng	
  Awards	
  

                           •  2010:	
  Best	
  Specialized	
  Marke`ng	
  (Shanghai)	
                     •  2010:	
  Social	
  Media	
  Marke`ng	
  in	
  Asia	
  Pacific	
  

                           •  2010:	
  Best	
  submission	
  for	
  30th	
  anniversary	
  compe``on	
  
                                                                                                         AYcus	
  Awards	
  
                              (Hong	
  Kong)	
  
                                                                                                         •  2010	
  Best	
  Digital	
  Influence	
  Essay	
  
                           Marke`ng	
  Magazine	
  
                           •  2011	
  Digital	
  Agency	
  of	
  the	
  Year	
  
                           •  2011	
  Crea`ve	
  Agency	
  of	
  the	
  Year	
  



Presented by   Audio Options:                                                                    Exclusive Media Partner                        Powered by
               Listen to the presentation using your computer
               speakers or dial in on the phone using the numbers
               provided in the confirmation e-mail.
Thank You!


thomas.crampton@ogilvy.com john.stauffer@ogilvy.com         Brian.giesen@ogilvy.com
       Asia-Pacific Director    Regional Strategy Director         Regional Director
       Ogilvy | Hong Kong        Ogilvy | Hong Kong                Ogilvy | Sydney




       commerce

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Ogilvy on Facebook Commerce

  • 1. commerce Presented by Audio Options: Exclusive Media Partner Powered by Listen to the presentation using your computer speakers or dial in on the phone using the numbers provided in the confirmation e-mail.
  • 2. Speakers Thomas Crampton John Stauffer Brian Giesen @thomascrampton @johnstauffer @bdgiesen Asia-Pacific Director Regional Strategy Director Regional Director Ogilvy | Hong Kong Ogilvy | Hong Kong Ogilvy | Sydney commerce
  • 3. Questions and Comments @ogilvyasia! or! commerce
  • 4. Quick Poll What  city  are  you  dialing  in  from? commerce
  • 5. “If I had to guess, social commerce is the next area to really blow up” -Mark Zuckerberg Source:  h*p://www.flickr.com/photos/briansolis/2696198607/   commerce
  • 6. AGENDA! The Power of Commerce in What is F Asia Commerce? Case Studies Getting Started commerce
  • 7. AGENDA! The Power of Commerce in What is F Asia Commerce? Case Studies Getting Started commerce
  • 8. Expected e-commerce growth by region from 2010-2013 Numbers  in  Billions   283.0   195.2   323.1   235.3   Europe   165.8   U.S.A.   13.2% 155.7   Asia   12.4% 27.5% 121.7  Rest  of  World   55.8   29.7% 963.0   572.5   Global   19.4% h*p://www.internetretailer.com/2011/01/04/global-­‐e-­‐commerce-­‐sales-­‐head-­‐1-­‐trillion-­‐mark   commerce
  • 9. The Web will be involved in 53% of total retail sales by 2014 Source:  Forrester   commerce
  • 10. Facebook’s Exponential Reach for Brands 750 million users Friends of Friends Friends of fans: 60M Friends Fan Base: 500K Source: SocialBakers.com commerce
  • 11. F-Commerce and Social Media 68%   3   10%   Say they use social The top 3 brands on Average Facebook networks when shopping Facebook sell directly store sees 10% month online on the platform to month increase in transactions Source: Forrester/Shop.org, socialcommercetoday.com commerce
  • 12. F-Commerce and Social Media 75%   25%   7-­‐10%   75% on Facebook 25% of customers have ‘Liked’ a connect with brands to Cart Values are 7-10% brand page receive discounts higher via Facebook Source: Forrester/Shop.org, socialcommercetoday.com commerce
  • 13. Social Commerce Market Size (US  Billions)   $30   $21   CAGR  =  43%   $14   $9   $5   Source: Forrester, GP Bullhound, Booz & Company Analysis commerce
  • 14. Quick Poll Would  you  purchase  physical  goods   off  of  a  social  networking  site  like     Facebook?   commerce
  • 15. Survey says… Would you purchase physical goods off of a social networking site like Facebook? X ✓   Note: Those not willing to purchase goods largely expressed concerns related to Security and Privacy. Source: Booz & Company survey commerce
  • 16. AGENDA! The Power of Commerce in What is F Asia Commerce? Case Studies Getting Started commerce
  • 17. Commerce F-Commerce means selling goods or services using Facebook. F-Commerce is a driving force behind the intersection of social networking and business. Source: Altimeter Group commerce
  • 18. Five Benefits of “Social” Shopping on Facebook Source: Altimeter Group commerce
  • 19. Insight Facebook stores on the brand pages of Proctor & Gamble are used as a “live-learning-lab” to help the business understand how consumers interact with their brands and technology in real life, opposed to via artificial surveys and sterile focus groups. commerce
  • 20. Brand Experience Increasingly, when asked why they connect with brands on Facebook, consumers say it is to shop and for deals. By adding a store to their Facebook page, a brand improves the experience and delivers at this touch point. commerce
  • 21. Loyalty Brands are using F-commerce to drive brand loyalty and increase propensity to repurchase – relative to competitors by offering loyal brand fans a privilege point of purchase. commerce
  • 22. Advocacy Using Facebook stores to get products into the hands of the people most likely to recommend them, their fans. By supporting each other via digital technology, consumers create their own loyalty loop with the brand that may promote repurchase. commerce
  • 23. Facebook ROI As the central component of any business case, ROI is a financial measure. One way to measure Facebook ROI is to link investment in Facebook to sales. E- commerce enabled Facebook brand pages help make this possible. commerce
  • 24. AGENDA! The Power of Commerce in What is F Asia Commerce? Case Studies Getting Started commerce
  • 25. Commerce On  Facebook     With  Facebook   F-stores Facebook ads Facebook e-commerce stores where A variety of advertising methods are shoppers can purchase real goods available depending on how brands with real currency without leaving want to reach fans (through friends of Facebook. friends or targeted marketing). Facebook Credits Custom Apps The mandatory currency used for Users can create games, stores, and games and in-app virtual goods. other engaging features for Recently being used for real goods promotional purposes or to provide with Deals on Facebook. uniquely branded experiences to fans. Facebook Deals Facebook Places Share experiences as opposed to just Local retailers drive in-store traffic by discounts. Consumers pay inside offering special discounts to consumers Facebook with a credit card, PayPal, who check in to their location with or Facebook Credits. Facebook places on their mobile. Source: Altimeter Group commerce
  • 26. On  Facebook F-Stores BAHN   Ticket sales and runs commerce
  • 27. On  Facebook F-Credits commerce
  • 28. On  Facebook F-Deals Drive sales through exclusive Facebook Deals commerce
  • 29. With  Facebook F-Ads Facebook Ads appear as banner ads on the right hand side of the platform. Brands can track the value of a fan arriving on an e- commerce site from a Facebook ad commerce
  • 30. With  Facebook Custom Apps Create Custom Apps to drive sales commerce
  • 31. With  Facebook F-Places commerce
  • 32. AGENDA! The Power of Commerce in What is F Asia Commerce? Case Studies Getting Started commerce
  • 33. F-Commerce Framework DISCOVERABLE EXCLUSIVE ENGAGING Brand pages must be easy to find Brands should keep exclusive Using a content calendar, brands and also integrated with other content/ value behind fangate, should encourage 2 way brand digital assets Visitors must first like the brand conversations to maximize organic (e.g. social plug-ins on website) page before seeing its content   word of mouth on Facebook CONVERT!   Word of mouth generated by engagement will spread content out to the friends-of-friends circle for better discovery and exposure   commerce
  • 34. F-Commerce Tactics DISCOVERABLE EXCLUSIVE ENGAGING -Fans only photos - Better brand page name + URL - Conversation calendar -Fans only contests - Social Plugins on official website - Embrace fans’ comments -Fans only information about brand - Facebook ads - Highlight fan-generated content -Fans only benefits - Work with other brand pages - Ask questions - Work with influencers -Fans only offers or discounts to - Be their friends convert sales/ leads CONVERT!   Word of mouth generated by engagement will spread content out to the friends-of-friends circle for better discovery and exposure   commerce
  • 35. Likes: The Fangate IKEA Summer Sale! Over 1,000 products as low as 60% off Source: www.facebook.com/ikeahongkong commerce
  • 36. Explore and Adapt Source: www.facebook.com/marketing commerce
  • 37. Show and Tell DIESELCAM commerce
  • 39. Calls to Action Source: www.facebook.com/marketing commerce
  • 40. Sponsored Stories Driving Purchase" 160% lift in brand recall 200% lift in message awareness 400% lift in purchase intent commerce
  • 41. F-Commerce Landscape Facebook Operating Additional Features Storefront Platform Key Information Customizable Checkout Like/ On Off Apps Analytics Price Large Small On Facebook Comment/ Facebook Facebook Business Business Share • • • • • • • *   • • $$   • • • • • • $$$ • • • • $ • • • • • • $ • • • • • • • • • • • • • • • $ • • • • • • • • $$ • • • • • • • • • • *Revenue  Share   commerce
  • 42. Facebook Measurement Model REACH ENGAGEMENT ACTION •  Number of fans for brand pages •  Number of discussion topics •  Click through rates for advertisements •  Number of wall posts on brand •  Number of brand mentions on page walls •  Number of contest entries •  Number of wall posts •  Number of news updates x fans •  Number of applications •  Number and tone of reviews downloaded posted •  Ad impressions •  Amount of content or offers •  Offline actions driven by coupons shared or special offers •  Video views •  Web traffic generated commerce
  • 43. The Most Awarded Social Media Agency in APAC   The  Holmes  Report  Awards   Click  Awards   •  2011:  APAC  Digital  Consultancy  of  the  Year   •  2010:  Integrated  Marke`ng   IPA  EffecIveness  Awards   WPPed  Cream  Awards   commerce •  2010:  Bronze  award  for  “How  Branding  Generated   Sales,  Even  in  a  Recession”   •  2010:  Best  Consumer  Marke`ng   ITSMA  MarkeIng  Excellence  Awards   Asia  Pacific  PR  Awards   •  2010:  Most  Effec`ve  Public  Rela`ons  (Diamond)   •  2010:  Best  Use  of  Digital  x  3   IBM  Global  Best  PracIce  Awards   •  2009:  Best  Use  of  Digital   •  2010:  Best  CFO  Case  Study  (Silver)   Asia  MarkeIng  EffecIveness  Awards   •  2010:  Best  Impact  in  Regional  Ac`vity  Using  Social   •  2010:  Most  Effec`ve  Public  Rela`ons   Media  (Bronze)   •  2010:  Values  Award   Ogilvy  Professional  Achievement  Awards   •  2010:  Best  in  Digital  Influence  (Taiwan)   MicrosoX  MarkeIng  Awards   •  2010:  Best  Specialized  Marke`ng  (Shanghai)   •  2010:  Social  Media  Marke`ng  in  Asia  Pacific   •  2010:  Best  submission  for  30th  anniversary  compe``on   AYcus  Awards   (Hong  Kong)   •  2010  Best  Digital  Influence  Essay   Marke`ng  Magazine   •  2011  Digital  Agency  of  the  Year   •  2011  Crea`ve  Agency  of  the  Year   Presented by Audio Options: Exclusive Media Partner Powered by Listen to the presentation using your computer speakers or dial in on the phone using the numbers provided in the confirmation e-mail.
  • 44. Thank You! thomas.crampton@ogilvy.com john.stauffer@ogilvy.com Brian.giesen@ogilvy.com Asia-Pacific Director Regional Strategy Director Regional Director Ogilvy | Hong Kong Ogilvy | Hong Kong Ogilvy | Sydney commerce