1. Social Commerce:Hype Vs. Reality THREE BREAKTHROUGH IDEAS THAT WORK TODAY Presented ENTHUSIASTICALLY by MICHAEL LAZEROW CEO, Buddy media 1

2. WHAT IS SOCIAL COMMERCE? 2

3. Ecommerce 1.0 “utilitarian hunt for staples” -ommalik 3

4. ECOMMERCE 1.0 Convenience. PRICE. SELECTION. 4

5. CONVENIENCE 5

6. CONVENIENCE 6

7. PRICE 7

8. SELECTION 8

9. SOCIAL COMMERCE “Frictionless shopping” 9

10. SOCIAL COMMERCE social and interest graphs drive buying decisions 10

11. TALI IS SHOPPING FOR A SUIT FOR HER HUSBAND. 11

15. THE WORLD IS BUILT AROUND PEOPLE. 15

16. THANKS TO FB, THE WEB IS ORGANIZING AROUND PEOPLE. 16

17. SEARCH: A BLUNT INSTRUMENT 17

18. If you only have a hammer, you tend to see every problem as a nail. - ABRAHAM MASLOW, PSYCHOLOGIST 18

19. BLACK-HAT SEO EXPERTS 19 SOURCE: Searchenginewatch.com

20. CONTENT FARMS “The popularity of Google’s search engine is still second to none, but Google has been plagued by black hat SEO practices and content farms for a while now … ” - Mashable, FEB. 2011. 20

21. LAST-CLICK ATTRIBUTION Last click attribution ignores 97% of spend driving conversions. - JULY 2010 DataXU STUDY 21

22. SOCIAL HUMAN BEHAVIOR, NOT CODE. NOT EASILY SPAMMED. NOT Easily CONTROLLED. 22

23. IS YOUR BUSINESS BUILT AROUND PEOPLE? 23

24. MASLOW’S HIERARCH OF NEEDS SELF-actualization ESTEEM LOVE/BELONGING SAFETY Physiological 24 SOURCE: http://en.wikipedia.org/wiki/File:Maslow%27s_Hierarchy_of_Needs.svg

25. MASLOW’S HIERARCH OF NEEDS SELF-actualization ESTEEM LOVE/BELONGING SAFETY Physiological 25 SOURCE: http://en.wikipedia.org/wiki/File:Maslow%27s_Hierarchy_of_Needs.svg

26. MASLOW’S HIERARCH OF NEEDS SELF-actualization ESTEEM LOVE/BELONGING SAFETY Physiological 26 SOURCE: http://en.wikipedia.org/wiki/File:Maslow%27s_Hierarchy_of_Needs.svg

27. PEOPLE WANT TO FEEL LOVED AND A SENSE OF BELONGING. 27

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30. PEOPLE WANT TO FEEL RESPECTED AND ACCEPTED. 30

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32. PEOPLE WANT TO REALIZE THEIR POTENTIAL. 32

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35. sharing helps achieve each of these NEEDS. 35

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37. Idea #1 Social commerce is more about commerce than social. 37

38. HYPE ALERT: SET UP A STOREFRONT ON FACEBOOK. 38

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46. DESPITE MANY ATTEMPTS, ECOMMERCE SUCCESS ON FACEBOOK IS LIMITED. 46

47. WHY? 47

48. FACEBOOK USERS ARE NOT ON FACEBOOK TODAY TO SHOP. 48

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50. BRING FACEBOOK TO YOUR COMMERCE RATHER THAN COMMERCE TO FACEBOOK. 50

51. BRING FACEBOOK TO YOUR COMMERCE RATHER THAN COMMERCE TO FACEBOOK. 51

52. REALLY???? EXPRESS.COM HAS LIMITED SHARING WHILE IT HAS A FULL STORE ON FACEBOOK FOR THE 3% WHO SHOP THERE. 52

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55. Idea #2 YOUR SMALLER, VOCAL CUSTOMERS MAY BE YOUR MOST PROFITABLE CUSTOMERS. 55

56. RAISE YOUR HAND IF … YOU HAVE SHARING FUNCTIONALITY ON YOUR SITE. 56

57. KEEP IT RAISED IF … YOU KNOW HOW MUCH REVENUE IS BEING DRIVEN THROUGH SHARING. 57

58. KEEP IT RAISED IF … YOU KNOW HOW MUCH REVENUE IS BEING DRIVEN BY PRODUCT THROUGH SHARING. 58

59. KEEP IT RAISED IF … YOU KNOW HOW MUCH REVENUE IS BEING DRIVEN BY CUSTOMER THROUGH SHARING. 59

60. MIKE IS SHOPPING FOR A T-SHIRT.

61. HE FINDS IT AND SHARES IT WITH HIS FRIEND IAN.

64. by Ian Shafer

65. SMALL BUYERS CAN BE BIG SHARERS & SELLERS. 65

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68. Idea #3 SILOES ARE KILLING SOCIAL COMMERCE. 68

69. PAID OWNED EARNED 69

70. LIMITED CREATIVE TESTING NO VIRAL TUNING NO LANDING TAB OPTIMIZATION OR MARKET SEGMENTATION

71. ELIMINATE THE SILOES Paid media (ads), owned media (FB Pages, WEB SITES) & earned media (viral sharing) MUST work together to succeed ON FACEBOOK. PAID OWNED EARNED 71 71

72. ELIMINATE THE SILOES CREATIVE OPTIMIZATION LANDING TAB OPTIMIZATION VIRAL TUNING

73. WHAT CAN YOU DO? Introducing SPINBACK 73

74. YESTERDAY BUDDY MEDIA ANNOUNCED THE ACQUISITION OF SPINBACK. 74

75. FIRST SOLUTION THAT MEASURES ROI FOR SOCIAL ON FACEBOOK, AND OFF. 75

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77. INTRODUCING EASYSHARE TM 77

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81. INTRODUCING EASYTRACK ANALYTICS TM 81

82. EASYTRACK ANALYTICS TM 82

83. EASYTRACK ANALYTICS TM 83

84. EASYTRACK ANALYTICS TM 84

85. CASE STUDY: DAILY DEAL CLIENT + $4.48 IN NEW SALES PER SHARE + 3.6 UNIQUE VISITS PER SHARE + 12.5% CONVERSION RATE VS 2.2% ON AVERAGE 85

86. CASE STUDY: DAILY DEAL CLIENT Women on FB in their 30s from THE Boston area DROVE $6.15 per share on average. 86

87. The average Facebook share generates $2.10 in incremental SALES. - AGGREGATE SPINBACK CLIENT DATA 87

88. AVG conversion rate for A Facebook share was 10.2%. - AGGREGATE SPINBACK CLIENT DATA 88

89. The most sharing for INTERNET retailers occurs on Wednesdays, followed by Thursdays. - AGGREGATE SPINBACK CLIENT DATA 89

90. 12:13pm - 1:45pm on weekdaysIS ‘MAGIC HOUR’ for RETAILERS. - AGGREGATE SPINBACK CLIENT DATA 90

91. 27-33 YEAR OLD WOMEN on Facebook ARE THE MOST ACTIVE SHARERS, and drive the highest conversion RATES. - AGGREGATE SPINBACK CLIENT DATA 91

92. Twitter drives highest CTR BUT has MUCH lowERconversion rates compared to Facebook and email. - AGGREGATE SPINBACK CLIENT DATA 92

93. SPINBACK USERS Most "liked" Book: Harry Potter Most "liked" Gameshow: Family Feud Most "liked" Game/Toy: ZyngaRewardville Most "liked" Household Supplies: Tide Most "liked" Movie: The Hangover Most "liked" Musician/Band: The Beatles 2nd place: Lady Gaga Most "liked" TV Show: House 2nd place: Glee 3rd: Ellen Most "liked" TV Network: HGTV 93

94. “Spinbackhas allowed us TO turn our Social Media strategy into more than just ‘Clicks’, ‘Follows’ and ‘Tweets.’ We are now getting actionable data showing us demographics, product trends and, most importantly, revenue tied to our activities." - Jason Roussos President & COO of Living Direct 94

95. THANK YOU! Michael Lazerow CEO, Buddy Media e: michael@buddymedia.com Twitter: @lazerow 95