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Let’s now take a look at a significant proportion of those people online, the Facebook population. The UK was one of the first places Facebook expanded after the US and Canada. On October 1, 2005, Facebook expanded to twenty-one universities in the United Kingdom and in a short 7 years, we’ve grown to a user base of 34M people. As you can see, growth in the UK continues. Over the past two years we’ve seen a 7% increase in the number of people who are using Facebook. About 70% of these people also log on to Facebook through mobile phones and almost 70% of them come back every day. (PAUSE) Given this explosive growth, you can now reach 68% of the UK internet population through Facebook. But what do these 68% of the UK internet population look like?
Whether you look at the number of pages they are consuming or the amount of time that people are spending, Facebook is clearly the dominant engaging digital platform. In fact, people consume two and a half times as many pages on Facebook as they do on the closest competitor, YouTube. Now, when I was putting this presentation together, folks said…that’s not a good statistic given so many people are on one page when they are on Facebook. To that I say…and that’s exactly the point! The fact that we have almost two and a half times the number of pages views as the closest competitor where people HAVE to view many pages is yet another proof point. In addition, people spend an average of almost 7 hours a month on Facebook. That’s almost four times the amount of time they spend on the closest competitor which is again, YouTube. I think it’s safe to say that Facebook users are SERIOUSLY engaged.
Over the past several years, gender has been pretty evenly split on Facebook. Over the past couple years, we’ve added a few more males than females. But it’s generally been pretty evenly split. Contrast that with age distribution which has changed significantly over time. We’ve seen user growth in older audiences. In 2009, 50 – 64 year olds made up 18% of the UK Facebook population and in 2012, they now make up 24% of the UK Facebook population. So where is the distribution decreasing? It appears much of the change is coming as a result of the percentage of 25 – 34 year olds decreasing from 22% to 17% from 2009 to 2012. Now, Facebook used by significant proportions of people in every age group and people of both genders in the UK.
We have great information about people in various audiences. Let’s start out looking at a group that you traditionally buy media against: 18 – 34 year olds. This audience is always on Facebook. 84% use Facebook daily and they average 73 minutes per day on Facebook. 50% say it’s the first thing they look at when they wake up and 55% say it’s the last thing they look at before bed. They are prolific in their production and consumption of posts on Facebook. They access Facebook on both PCs and mobile phones but phones are much more important to this group than older people. And 50% of them have asked their friends for product and service recommendations.
Now let’s turn to an audience with some real purse strings…so to speak. UK Mums. UK Mums are quite active connecting on Facebook. 80% use Facebook daily and they average 69 minutes per day on Facebook. They consume more than they produce (moms have hectic lives) and tend to be big multi-taskers. 50% of them have asked their friends for product and service recommendations.
The fact that they are often on mobile allows this group to be on Facebook frequently. 86% use Facebook daily and they average 61 minutes per day on Facebook. This group also consumers more content than it produces and they also tend to multitask. And 50% of them have asked their friends for product and service recommendations. Now, the interesting thing to me about Facebook is less about the demographic targeting, things like age or mums, and more about the behavioral and psychographic targeting we can do. If we work together to create a mutual understanding of who you’re targeting in your business, we can help you reach them more precisely than you’ve ever been able to before.
Now, this is not going to be a surprise to anyone in this room, but Retail is undergoing a major transformation driven by technology. I sit on the board of Shop.org in the US, and just came back from our annual summit in Denver – and all we talked about was how to adapt to the new omnichannel environment. It is not the first reinvention cycle for retail: as open markets evolved into shops and then superstores, driven by economies of scale, retailers have continuously faced disruptions. However, I would argue that there is something new happening today. The common trait between all the previous phases was that all marketing strategies were designed to drive traffic into the store. Today, because consumers have access to all the information they need constantly, they are shopping everywhere, all the time – comparing prices, asking their friends for recommendations, reading reviews… The impact for marketers is that you need to market to them everywhere, all the time, and on the device they are spending their time on, namely their PC and mobile.
We give you the opportunity to engage your customers, wherever they are. Let me talk for a minute about mobile. We all know that the mobile revolution is happening far more quickly than anyone predicted. Just the other day, Mark Zuckerberg was very up front about the fact that Facebook has been playing catch-up to deliver a mobile experience that matches our desktop experience. But within the last few months, we’ve taken some giant steps forward. We now allow brands to invest in “sponsored stories,” which puts your message right in the heart of the user experience – in the News Feed. Going back to the dinner party, this is like being right in your customers’ living rooms, rather than banging on a window.
More than 2 million people from 100 countries watched online video of Topshop’s Spring/Summer 2012 Unique show in the three hours after the fashion retailer live streamed it Sunday. Topshop posted video of the 10- to 15-minute show immediately after it ended. Topshop built considerable buzz in the days leading up to the show by promising consumers a “personalized” and shoppable live stream experience. Viewers could click on clothes and accessories to browse color options as they came down the catwalk, and create screenshots and video clips to share instantly on Facebook, Topshop said. They could also order makeup for delivery within 48 hours, and select apparel and accessories for delivery in six to eight weeks — well before their January arrival in stores. Those who missed the live stream were able to view the show immediately after, on-demand. In total, the fast-fashion retailer estimates that “well over” 200 million people were exposed to images and content from the show in the first three hours, largely thanks to the screenshot-sharing tool it developed in conjunction with Facebook. Several looks sold out within an hour, the company said in a statement. At least one sold out before the show was even over, Justin Cooke, chief marketing officer at Topshop, tweeted:
Purchasing decisions need no longer be based on anonymous reviews on third party websites, but by drawing on the knowledge of your network. In some ways we have come full circle from when we were in the pub getting advice from our friends, only now the network we can draw on is much larger and much faster. Retailers are starting to realise the opportunity this presents and using FB identity to create the same kind of highly personalised experience you saw in the Trip Advisor example I just shared earlier. This is Fab.com – you can connect to your Facebook profile – and shop with your facebook friends.
The feed of products I see is entirely based on what my friends have liked or in this case ‘ faved ’ - each users view is unique to them and inherently more interesting because it is made up of the things my friends like or covet or own. Think about the opportunities this presents to personalise experiences for your customers – not just online, but offline too Fab.com has leveraged FB advertising to grow to its business to over $140M in sales and 6M customers over the last 18 months. They have raised over $150M in venture funding and has already expanded in the UK and Germany. The design e-tailer spends 50% of its ad budget on Facebook targeting people who like design blogs and certain flash-sale sites, among other targeting. It finds that new members from Facebook typically invite three friends to join. Traffic: Fab.com grew its membership by 50% in Q3 2012, from 5M to 7.5M, with Facebook driving 1/3 of the growth. Platform: More than 50% of weekly logins to Fab come via Facebook Connect, which Fab implemented in July, and has made referral traffic from Facebook grow 20x. Every open Graph action published to Facebook now results in 4 visits back to Fab. Source: Fab.com return on that investment. It is a fantastic channel for us and it delivers real ROI with high conversion rates to purchase and then super high viral sharing rates. Facebook advertising works if you know how to use it and stick with it and turn it into a science. And it keeps getting better. Jason Goldberg, CEO
Comscore paper – Power of Like II – rewarding fans with sales
I now want to introduce to you a series of new products we are launching to help you maximize advertising efficiency and sales. The first is Facebook Exchange, which we announced last week.
I now want to introduce to you a series of new products we are launching to help you maximize advertising efficiency and sales. The first is Facebook Exchange, which we announced last week. The way it works is quite simple: suppose one of your customers is on your website and adds something to their cart, but then leaves without checking out. What you can do is work with a Demand Side Platform to track this user on the web. So the next time they’re on Facebook, they will see your ad instead of the regular right-hand side ads we currently run. And those ads tend to perform much better [read stats]
Product number 2 is Custom Audiences
Upload user lists to target on Facebook – High match rates Match on email/phone Can overlay native FB targeting No size limit Completely private – FB never sees the plain data – Hashes are discarded after process Allows to refine targeting further for reactivation, exclusion targeting, etc.
Facebook Offers is a new Custom Page Post in beta that is only available to businesses. It ’s really effective at driving coupon claims and redemptions for both brick and mortar businesses and ecommerce businesses. The way it works is that a business posts an offer to their fans. When their fans claim the offer either from the newsfeed or from the Page itself, a Claim Story is generated that goes to the friends of those fans in newsfeed, who then claim the offer themselves. Something that has been gratifying to see is that for most offers, a majority of Claims is generated by friends of fans instead of by fans themselves. Again, proving that virality of posts is powerful for business. Overview Create and distribute a discount or promotion your connections can claim and share with their friends Redemption When users click on the offer, we email it to them, and they can redeem it later Pricing The amount you pay is based on how many people you want to reach Offer types Three types of offers: in-store only, in-store and online, online only Measurement Measure using dedicated barcodes or promo codes
Reach 543M monthly active users on mobile Placement 3 slots in Mobile newsfeed OS iOS/App Store and Android/Google Play Targeting All native targeting available Measurement Cost per Install measurement & optimization
We have a number of unofficial slogans at Facebook. If you come to our offices around the world, you’ll see posters and bumper stickers. This is one of my favorites: this journey is 1% finished. It’s important for us to realize that as big as social has gotten, as many users as Facebook has, we’re still in the very early stages of this. We may not know exactly what the social marketing experience will look like in 3, 5 or 10 years…but one thing we know for sure is that businesses are better in a connected world. And retail in particular is better in a connected world – this is why this is such an important sector for us – we think there is so much opportunity to be explored. We want to help you, our most important customers and partners in this sector be successful on our platform and that’s what today is all about. We wanted to share the new solutions we are building to help drive your businesses. Discuss some of the topics we know are on your minds. And figure out how we tackle this opportunity together. We’re excited to take this journey with you – thank you for coming and spending time with us today. Now I’ll hand over to Gavin to introduce our first session.