2. Fundamental Change in Online Shopping 2

3. Fundamental Change in Online Shopping 3 Online social network users were three times more likely to trust their peers' opinions over advertising when making purchase decisions. (1) Consumer recommendations, like those on social networking sites, are the most credible form of advertising. (2) Word of mouth marketing, including social networking, is the number one influencer in consumers’ apparel and electronics purchases. (3) JupiterResearch, March 2007 Nielsen, October 2007 Retail Advertising and Marketing Association/BIGresearch Study, November 2008

4. Consumers want to connect with you 4

5. What’s Ahead? 5

6. Who are your customers? 6

7. What are they doing online? 7

8. Sharon 8

9. How Sharon Used to Shop 9

10. How Sharon Shops Now 10

11. Ron 11

12. What Ron Does Online 12

13. Build Communities & Go Where Your Customers Are 13

14. The 9 Main Internet Business Models 14 More at http://digitalenterprise.org/models/models.html

15. Merchants 15

16. Manufacturers 16

17. Brokerages 17

18. Affiliates 18

19. Information Intermediaries 19

20. Utilities 20

21. Advertising 21

22. Subscription 22

23. Community 23

25. Affiliate

26. Community

27. Information Intermediary

28. Subscription

29. Utility

30. Advertising

31. Affiliate

32. Brokerage

33. Manufacturer

34. Merchant

35. Subscription

37. Discussion Forums 26 http://www.threadless.com/blogs

38. Articles and Blogs 27 http://www.drsfostersmith.com/pic/

39. Content Added by Customers 28 http://braggingboard.gandermountain.com/

40. Tell a Friend 29 http://www.wetseal.com/

41. Social Shopping 30 http://www.fluid.com/products/fluid_social

42. An Entire Social Network 31 http://www.mysears.com/

43. Create Your Own on Ning.com 32 http://community.muttropolis.com/

44. StyleCaster Just Raised $4 Million 33 http://www.techcrunch.com/2009/07/01/stylecaster-nets-4-million-for-personalized-fashion-community/

45. What would Sharon & Ron want? 34

46. Capitalize on the Long Tail 35

47. Offer Subscriptions for Specialized Content 36

48. Successful Subscription Models 37

49. Successful Subscription Models 38

50. Types of Content 39

52. In-Game Advertising

55. Who Buys Virtual Goods? 43 Source: http://blog.viximo.com/corporate/2009/07/22/ who-buys-virtual-goods-its-not-who-you-think/

56. Why Do People Buy Virtual Goods? 44 Status – Virtual goods help you stand out from the crowd Socializing – Virtual goods help you express yourself Winning – Virtual Goods help you gain an advantage Source: http://blog.viximo.com/corporate/2009/07/15/top-3-reasons-people-buy-virtual-goods/

57. Examples of Virtual Goods 45

58. Examples of Virtual Goods 46 Source: Free: The Future of a Radical Price, Chris Anderson

59. Examples of Virtual Goods 47 http://www.playspan.com

60. How can you incorporate virtual goods? 48

62. Rich media ad inside game

63. Brand overlay inside gameEst. $1 billion+ market for in-game advertising by 2010, according to Nielsen Media Research. More than one-half of US adults play video games, and about one in five play every day or almost every day, according to the Pew Internet & American Life Project.

64. Examples of In-Game Advertising 50

65. In-Game Advertising Opportunities 51 http://www.spotxchange.com/

66. Ability to Target 52

67. What is Group Selling/Group Buying? 53 From WujWuj.com

68. Examples of Group Selling Sites 54

69. Consider Your Margins 55

70. Conclusion 56

71. Thank You! 57 Carol Morgan Cox @CivicLink carolmorgancox.com