1.
Convergence:
How social commerce and mobile
change the way we make decisions
and shop
Social Media Week NYC 2011
@saatchiwellness
#smwsaatchi

2.
• If you scanned this QR
code, you just witnessed
the power of convergence
• Without even realizing it-
you‘ve used multiple
previously distinguishable
technologies

3.
Converge:
To tend or move toward one point or one
another : come together
To come together and unite in a common
interest or focus
Merriam- Webster

4.
Does Convergence look like this?
Jackson Pollok‘s Convergence: Number 10; 1952

5.
The merging of distinct technologies, industries, or devices
into a unified whole– there are examples all around us
• Multiple sources of information , which align at different touch points
• Information exchange is ongoing and happens in real time
• The way we encounter information has changed- discovery through the
newsfeed

6.
This is the way we used to look for directions

7.
Travel directions today…

8.
We live in an increasingly more digitized world
• eBook sales have more than doubled from
2009 to 2010
• eBook sales grew 163% between
January and August 2010, up from $89.8
million in 2009 to $263 million in 2010
• eBooks now make up 9.03% of total
consumer book sales - compared to 3.31%
at the close of 2009
• Since 1971, Project Gutenberg has been
digitizing books and offering these online for
free-- they have over 33,000 free books
available today
American Association of Publishers

9.
The availability and our access to information is
immense
We are in fact becoming smarter because we are
always connected

10.
Chris Anderson, Head of TED
conferences calls this ―Crowd
Accelerated Innovation‖
• Bring enough people with a
common interest together and
they will start to share and
compete and improve
• He points to a dance video
online which spurs other
dancers to create videos that
top the first

11.
Convergence can be understood in terms of
the following developments:
The merging of multiple channels onto a
single application, device or service
(i.e. broadcasting, telephone, television, motion
pictures, photography, printed text and money)

12.
• 38MM people watched on TV, 70 MM watched online
• Facebook averaged 8,500 FB updates/min during the inauguration
• At its peak, CNN served 1.3 million concurrent live streams

13.
Video and social media continue to be some of our
government‘s most important communication tools

14.
The lines of communications are blurred–
it‘s hard to tell where one ends and one begins

15.
There is a growth in the interactivity and connectedness
of different networks, information platforms and devices

16.
Our hardware today is smarter– Handheld
Convergence

17.
There is growing amount of overlap in the functions that can
be performed by different devices– iPhone is also a ―business
card‖

18.
• Convergence is redefining our expectations
• Breaking the mold for information formats and the way we
interact with information
• We are in the midst of a ―digital renaissance‖
(MIT Professor Henry Jenkins)

19.
―…the pace of change of our human-created
technology is accelerating and its powers
are expanding at exponential pace.‖
- Ray Kurzweil

20.
talk to me I‘ll make the
reservation
I just got
your email
It‘s on the next
block
Friend me
I downloaded the
photos
We are living in a world where we are perpetually plugged in,
which is driving the development of new types of business models
that take advantage of the potential and new value created
21

21.
Mobile Convergence
• Ubiquitous nature of
mobile devices
• New technologies
Unlocking a new type
of potential and value

22.
Geo-location
Our devices are so smart, that they know where we are
• ―Checking-in‖ draws on a competitive mentality
• Leverages the social graph as a powerful promotional tool

23.
Geo-location
As a consequence, we become hyper-aware of our
surroundings- It‘s the mashing of content and context

24.
Shopping
According to the WSJ, 2010 was the year of the app--
fostering a culture of “now-ism”, of instant gratification

25.
Holiday Shopping 2010
• 52% of U.S. Smartphone users
planned to use their phone to
compare prices during the
holiday season – Google Blog
• 40% planned to use their
phones to read product
reviews- Google Blog
• eBay mobile sales reached
$230M during the holiday, up
166%- eBay

26.
Near Field Communications
Allows a device to collect data from another device or NFC tag at close range--
Opens up huge potential for mobile payments

27.
Mobile Payments
The number of mobile payment users
worldwide increased to 73.4 million in
2009, roughly a 70% increase over 2008,
and could breach 190 million by 2012
(Forbes, December 2010)

28.
―E-commerce is Over. Long Live
Social Commerce‖
-Wired February 2011

29.
Social Commerce
• The selling with social media
• There are generally two type of social commerce:
– Shopping on a social media page (i.e. Facebook tab)
– Social media incorporated into an e-commerce page (product
reviews)
• Product discovery and purchase decisions are informed by the
collective and distributed social intelligence of peoples‘ social
graphs
• Transaction as communication – ―shop-and-tell‖

30.
―If I had to guess, social commerce is the
next area to really blow up‖
- Mark Zuckerberg

31.
2010 saw an explosion of group shopping sites that
relied on the viral nature of crowd behavior

32.
• Social commerce helps people realize the value
expression of shopping— what psychologists call
‗impression-management’ – aka bragging rights,
ego-tripping
• We discover brands and products through our online
social network—not dissimilar from how we would
discover these offline

33.
Convergence and Social Commerce
• 90% of purchases are
subject to some sort
of social influence
• Value-expression
function of shopping
• Make smarter
shopping decisions
using their social
intelligence

34.
Source: Oracle Retailing Blog

35.
Convergence
Smarter hardware
and software
On-demand Greater access to
consumerism information
Crowd accelerated Constantly
innovation connected
Info discovery
Smarter People
Culture of Now-ism

36.
―Welcome to convergence culture, where old
and new media collide, where grassroots
and corporate media intersect, where the
power of the media producer and the
power of the media consumer interact in
unpredictable ways‖
– Henry Jenkins

37.
THANK YOU
Social Media Week NYC 2011
@saatchiwellness
William Martino
SVP, Director of Digital Strategy
V 212.463.2524
william.martino@saatchiwellness.com
Sharon Mandler
Sr. Digital Strategist
V 212.463.4746
Sharon.Mandler@saatchiwellness.com