Social is the most important contributor to e-commerce and a social commerce strategy should definitely be more than paid ads on social. Social, Messaging and E-Commerce platforms are all evolving to connect more deeply social interactions to commerce. Looking through the super rich Asia landscape what are all the different types of Social Commerce? How brands can develop, evolve their approach and capitalise on the real value of social.
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8. Social Commerce is a subset of e-commerce - and
more broadly, retail - that involves social media,
online media that supports social interaction, and
user contributions to assist online buying and
selling of products and services.
More succinctly, social commerce is the use of
social networks and interactions between buyers
in the context of e-commerce transactions.
The closest we could
get to a universal
definition
9. Yet with vastly different
types of activity happening
within this space, is a single
definition helpful?
10. Three distinct types of
social commerce activity
#3 Commerce-based Social
Integrating social features into
e-commerce platforms. This is commonly
in the form of a “feed”, as seen on Tmall,
Lazada and Shopee.
Social Interaction mechanism such as
advocating, liking, sharing, recommending,
etc build in ecommerce platforms
Humanizes the shopping experience
Makes it more interactive
#2 Social Referral
Driving traffic from social platforms such
as Facebook to ecommerce platforms such
as Shopee or Tmall — usually involves
influencers and specially-created social ad
formats
From social content to paid media to
influencers, recommendations and
partnerships.
Using channels and people to drive to e-
commerce
#1 Social-based Commerce
Transactions happening mostly within
social platforms from discovery to
selecting and sometimes paying in
platforms such as Instagram, Line, Viber,
Zalo, WeChat
Content that inspire shopping, influence
purchase decision.
Seamless journey is key.
API Connection with commerce platform.
11. But one thing’s for sure, social is influencing
online shopping behaviours
Several studies have pointed out that online
shoppers rely increasingly on social networks to
help with their purchasing decisions.
55%
of people bought a
product online after
discovering it on
Social
Source: eMarketer, USA, 2019
12. And social media has become a growing
driver of traffic to e-retailers, even if not
the largest yet.
Interestingly non paid ads are playing a big role.
How valuable are the following networks in terms of
driving non-paid online sales
Source: Econsultancy The State of Social Commerce in South East Asia 2019
13. Another thing’s for sure: Asia leads the
world in social commerce innovation
Asian social media platforms, and consumer more
comfortable with mobile purchases, have
accelerated the development of social commerce.
Platforms built for Social
Commerce:
Little Red Book (China),
Pinduoduo (China)
Sophisticated linkages
between Social and
Commerce platforms
E.g. Viber, Zalo,
Tiktok/Shoppe etc
Payment through mobile
Social Platforms Common
WeChat Pay etc
15. Each form of social commerce
requires a different approach,
skillset and technology
#3 Commerce-based Social
Integrating social features into e-
commerce platforms. This is commonly in
the form of a “feed”, as seen on Tmall,
Lazada and Shopee.
#2 Social Referral
Driving traffic from social platforms such
as Facebook to ecommerce platforms such
as Shopee or Tmall — usually involves
influencers and specially-created social ad
formats
#1 Social-based Commerce
Transactions happening mostly within
social platforms from discovery to
selecting and sometimes paying in
platforms such as Instagram, Line, Viber,
Zalo, WeChat
16. #3 Commerce-based Social
Integrating social features into
e-commerce platforms. This is commonly
in the form of a “feed”, as seen on Tmall,
Lazada and Shopee.
#2 Social Referral
Driving traffic from social platforms such
as Facebook to ecommerce platforms such
as Shopee or Tmall — usually involves
influencers and specially-created social ad
formats
#1 Social-based Commerce
Transactions happening mostly within
social platforms from discovery to
selecting and sometimes paying in
platforms such as Instagram, Line, Viber,
Zalo, WeChat
17. End to end shopping. Not yet for all.
Inspiring Discovery Narrowing Closing
Shoppable and
swipe up stories
Shoppable stickers
#1 Commerce in social platforms
Your Storefront on Instagram
18. Facebook is introducing Facebook Pay,
which will provide people with a
convenient, secure and consistent
payment experience across Facebook,
Messenger, Instagram and WhatsApp.
• Add your preferred payment method once then
use Facebook Pay where available to make
payments and purchases on their apps
• Set up Facebook Pay app-by-app, or choose to set
it up for use across apps (where available)
• View payment history, manage payment methods
and update your settings in one place
• Get real-time customer support via live chat in the
US (and in more places around the world in the
future)
• Social platform's digital wallets will open the
internet up to the 'unbanked’ especially in SEA
#1 Commerce in social platforms
Facebook Pay will change the game
19. Limited to items that have a sponsored hashtags.
In partnership with four influencers, Kroger is
encouraging college kids to post videos of their “cool and
essential dorm room transformations” with the hashtag
#TransformUrDorm.
Users who choose to engage can also shop for Kroger
products on a dedicated branded page.
#1 Commerce in social platforms
Everyone is getting at it.
Catalogs are a mobile
storefront for businesses to
showcase and share their
goods so people can easily
browse and discover
something they would like to
buy.
Previously businesses had to
send product photos one at a
time and repeatedly provide
information — now
customers can see their full
catalog right within
WhatsApp.
For each item in its catalog, a
business can add information
including price, description
and product code. It saves
space both businesses and
customers.
Today available in Brazil,
Germany, India, Indonesia,
Mexico, the U.K. and the U.S.
WhatsApp catalogs
Tik Tok In-app purchases soon available
20. #1 Commerce in social platforms
Conversational commerce
Zalo Store: Shop and Chat
Shop on Social Zalo Network and order directly on Zalo app. Questions about product? Chat directly.
21. #1 Commerce in social platforms
Turning shopping into social experience
Limited release
Viber solved the lonely experience of e-commerce issue by bringing
users an in-chat shopping experience that would allow them to shop
online with the people they would otherwise go to the store with.
Instant Shopping brings a catalog of brands and products to your chats.
22. 8 million Line Shopping platform users In Thailand (44% of Line users)
It provides a wide assortment of items from 15 major online marketplaces.
There are mini-applications to service business on the platform. For example, apps for
managing things like coupons, reservations, and payments will now be a thing, meaning
users can easily manage their business within one platform.
Plus, LINE will also be collaborating with Akita Fulfilment and aCommerce to offer
one-stop-service shopping experiences. Users and sellers can manage orders, payment
methods, payment slips, and purchase confirmations via LINE chat.
Taiwan Diageo A one-stop
shop experience in Line
Data collection, CRM &
Loyalty
Friends click label, registration
information, recommend
friends, etc
#1 Commerce in social platforms
Shopping central to Life on Line proposition
23. Many brands bring commerce experience to WeChat via
mini-programs – apps easily activated without leaving
WeChat
Links seamlessly to JD.com or other WeChat-friendly
commerce platforms
Nescafe sells accessories through WeChat and integrates Fan
Club – their loyalty program.
Social interactions are key to the loyalty programs and be
used to earn points, redeemable for products or branded
accessories
#1 Commerce in social platforms
Bringing commerce to WeChat through miniprograms
24. #3 Commerce-based Social
Integrating social features into
e-commerce platforms. This is commonly
in the form of a “feed”, as seen on Tmall,
Lazada and Shopee.
#1 Social-based Commerce
Transactions happening mostly within
social platforms from discovery to
selecting and sometimes paying in
platforms such as Instagram, Line, Viber,
Zalo, WeChat
#2 Social Referral
Driving traffic from social platforms such
as Facebook to ecommerce platforms such
as Shopee or Tmall — usually involves
influencers and specially-created social ad
formats
25. #2 Social referral
Product Feature Content
Content and post featuring
products to inspire or tease.
Paid Media
Paid media ad driving to e-
commerce site.
Influencers
Influencer featuring links on
their organic posts or stories to
product pages and websites.
Recommendations /
Referrals
Partner or people
recommending or referring
brands and products via links to
pages and websites
26. #2 Social referral
Dynamic display
Stories Ad Video Ad
Visually immersive
videos that are up to 60
seconds long in
landscape or square
format.
Collection AD
You can use collection to visually
inspire and help your audience
discover, browse and purchase
products. Tell an integrated story
with a product or lifestyle focus,
through video, images or both.
Carrousel AD
Add another layer of depth to campaigns,
where people can swipe to view additional
photos or videos in a single ad.
27. Consumers are increasingly expecting
influencer marketing to be more subtle and
authentic, in order to not fall in the trap of
endorsed product placement.
Several initiatives and new formats were brought to life in
order to maximise the influence of influencers.
Today, Instagram is to let influencers use the app to tag and sell
products directly on the grid; a move it claims will enrich the
shopping experience for users.
Expect a boom in influencer affiliate marketing through social
as their sales figures become more trackable and transparent.
#2 Social referral
Authenticity vs Sales
29. #2 Social Referral
Driving traffic from social platforms such
as Facebook to ecommerce platforms such
as Shopee or Tmall — usually involves
influencers and specially-created social ad
formats
#1 Social-based Commerce
Transactions happening mostly within
social platforms from discovery to
selecting and sometimes paying in
platforms such as Instagram, Line, Viber,
Zalo, WeChat
#3 Commerce-based Social
Integrating social features into
e-commerce platforms. This is commonly
in the form of a “feed”, as seen on Tmall,
Lazada and Shopee.
30. #3 Commerce-based social
China leading the innovation
Platforms using content to encourage
shoppers to “hang out” on Tmall as if they
were on social media platform.
Ali’s ecosystem: Taobao Headlines,
Weitao, Livestream, influencers etc
Are people really interested in
socializing when shopping? Some
features take off, others don’t – but Alibaba
seems determined to make them stick.
32. #3 Commerce-based social
Southeast Asia, with its China-owned ecosystem, has
increasingly similar opportunities
Social ”feeds” and other social
functionality are being pushed heavily
by Lazada, Shopee, etc
If the platforms/usage develop in
similar ways to China, we predict
more value in livestream and social
gamification
34. As part of its 10.10 campaign,
Wyeth took advantage of
Lazada’s all-new social
engagement opportunities to
drive sales and position itself as
the brand with “answers for
every mom”
36. We believe social commerce can
make brands matter
in 3 time horizons
37. across time and every idea
PLATFORM
PROGRAM
PULSE
Mattering
for years
Mattering
each quarter
Mattering
right now
It should not be an afterthought
38. making social commerce matter
At the right moments every day: dynamic push and pull content
around timely and relevant products
At moments of business opportunity: use social as a push to
stimulate demand and conversations
Content and creative alignedd with brand platform.
A E-Commerce strategy which social is part of.
PLATFORM
PROGRAM
PULSE
41. New prospect
Attract
Already Customers
Upsell / cross sell
People interest by the brand
Incite, persuade
From content to
paid media
strategy we cannot
sell the same way
to all.
A solution:
Dynamic assets which can be
optimized by audience.
#1 Current Customers vs Acquisition
42. Brand platform and guidelines apply in the context of social commerce as well.
It’s should not feel different.
However can have integrate ways to highlight new product, limited offer or promotion.
Codification everywhere is key. It helps to create awareness, recognition and memorization.
When one prospect is reached at the Sales stage, he easily makes the connection with the awareness post he saw previously.
#2 Creative Consistency
Awareness Consideration Conversion
43. IN-DEPTH
UNDERSTANDING OUR
TARGET AUDIENCES
LIFESTAGES
ATTITUDES
MINDSETS
BEHAVIOURS
INTERESTS
TRENDS
KEY TRIGGERS FOR HYPER
RELEVANT & PERSONALISED
CONTENT
Thanks to data analytics,
audience segmentation,
retargeting strategies and
personalized creative, social
platforms offer all the
necessary ingredients to build
powerful customer-centric
campaigns.
Qualify based on previous engagements
or look-a-like
Personalised marketing will get more
personal as social media platforms track
previous purchases and begin to
recommend the perfect accompaniments.
Watch outs
Remove choice
Complicating Comparison
Hiding Social Proof
#3 Personalized experience
44. #4 Evolution
Continuous testing and
optimization on the
ecosystem and the go-to-
market content and offers.
2-3 times a years at:
• Platforms
• Partners
• Tools
Constantly:
• Audience
• Creative
• Copies
• Frequency
• Placement
45. The holy grail
Swipable Conversions
Brands are trying to find new
immersive and interactive
ways to generate conversions
without even leaving the social
apps.
Fuelled by improvements in augmented
reality and camera detection technologies
the distance between inspiration and
purchase will continue to shorten upending
the path to purchase funnel. Everything we
see will be instantly shoppable both on and
offline wherever we are in the world.
#5 Immersive and interactive experiences
(1) Adidas swipe up leading
to gaming experience where
users could buy cleats
(2) Premium tequila Patron
becoming the first alcoholic
drinks brand that you can
order via Instagram by
swiping up the ad.
46. But we believe that to
truly win on social commerce,
brands must be truly social
47. In many cases there’s nothing social about the
transaction — it just happens to be taking place in a
social app
While there’s nothing wrong with this, we believe that
to make the most of social commerce, we need to find a
meaningful role for buyer-buyer interactions as part
of the transaction
48. 4 design principles to make sure your social
commerce is truly social
#1 Social Proof: Are social
interactions, especially
comments, visible to other
buyers? Are buyers able to see
whether their friends have
bought the same product?
#2 Social Advocacy: Are we
making it easy for consumers to
share about their experience? Is
our content engaging to the point
people are compelled to share it
with friends? Are we incentivising
it as part of a loyalty program?
#3 Social Cause/Topic: Is
our content, or even the product
SKU/bundle, tapping into
important causes or hot topics?
If what we’re selling, or its
content, tap into societal
conversation it will get more
exposure through e-commerce
platform algorithms etc.
#4 Social Conversation:
Are we creating spaces for
people to talk about their
preferences, experiences and to
ask questions?
49. Recap & learnings
It’s more than a paid ad
Types of
Commerce
1. Commerce in Social
Platform
2. Social Referral
3. Commerce-based
Social
Matter Across Time
Horizon
• Your overall strategy
(e-commerce linked to
brand)
• Your program
(campaigns)
• Your Pulses every day
Dimensions to plan
and execute
1. Current Customer
vs acquisition
2. Creative Consistency
3. Personalisation
4. Evolution 2 level
optimisation
5. Immersive and
Interactive
experiences
Social Design
principles
1. Proof
2. Advocacy
3. Reach
4. Cause / Topic
5. Conversation
50. Now ask yourself:
Where are your users?
What kind of experience you want to create?
Who do you want to partner with?
What technology do you need?