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 cant help it: we need to belong Seth Godin - Tribes

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)

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 todays customer - George Hsu and Brian Halligan http://www.slideshare.net/HubSpot/social-revolution-connecting-with-todays-customer

Social Commerce is attracting more competitors

324 Million

Websites

The scary thing is that most of the growth has occurred in the last 12 months
Eugene Ware, Market Samurai
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is making social networks more valuable

If you dont use social media you wont get traffic internet marketing plans must integrate social media because Google has made social content a ranking factor Michelle Macphearson
Internet Marketing Authority, 22 Feb 2011

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 todays 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 todays 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 todays 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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The conversation around content is now king.

The opportunity is: publish your way to success

Super-charged word of mouth will determine the success or failure of brands

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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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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?

Additional information and commentary: KPMG ViewPoint April 2011 Scott Cass-Dunbar and Sean OByrne
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Social Media impacts all areas of Marketing

Additional information and commentary: KPMG ViewPoint April 2011 Scott Cass-Dunbar and Sean OByrne
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Source: The Social Revolution Connecting with todays 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 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!

Feature films produced yearly
20,000+ 1,100
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 arent 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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Social networkers love to talk film!

Movies are the most discussed category in social media circles - UM 2010
Universal McCann Wave 5

~ 500 million share opinions on film

I share opinions I write / create content I seek info to keep up to date I seek info when I need it

Yet theres no globally prominent social network site dedicated to the global film industry and film fans - unlike Flickr (photos), Last.fm (music), YouTube (videos)
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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
Liz Rosenthal, Director of Power-to-the-Pixel, and Strategy Advisor to the UK Film Council

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)

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Filmmaking: toward a social model

The conventional approach
Formation Define & establish production company Prepare development activity plan Prepare investment offer Raise finance Announce company to domestic & International distributors Development Green-light Story Create 30 sec teaser Pre-production Physical production prep Prep marketing materials insurance facilities Negotiate studio & distribution agreements Plan & engage pre-sales Activate completion bond Complete final pre-production Production Exercise material agreements Music 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.

Build End of Project Fan base for next project

Engagement:Obtain banking & starts earlier and continues from project to project Compile film
comparatives Assemble creative team Pitch to studios & Distributors Go No-Go If yes continue development Conduct audience test screenings of workreel and trailers

Engagement with the film audience increases Film lifetime value and next-project awareness
Attach Director Create shooting script Attach voice actors

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The Opportunity: enriching the film experience

1. the social experience of film 2. discovery and access to new, previously undistributed content social media is the ideal platform for this shared cultural activity.

Illustration: from Universal McCann When did we start trusting strangers?

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When Film Goes Social: Project Borneo 3D

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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Exit by IPO?
~ >$50 billion 30 X its $2.34B Funding valued at $10B

Median $520M

Median $242M

Median $677M

IPO US$8.9B May 2011

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/

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Social Commerce Key Points

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. Its 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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Thank you!
Antony Hing Co-founder & Director Email: Antony.Hing@Movr.co LinkedIn: http://au.linkedin.com/in/antonyhing Web: www.movr.com

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