SHOPPING GOES SOCIALWhy consumers are turning to

social media before they hit the stores

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has dramatically changed in the past 5 years.

Online shopping

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With the rise of online product reviews, consumers now turn to social media for advice on what to buy.

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To give you an idea of

the impact of social media...

No.1online activity is social networking.

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of all time spent online is on

1/3

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A quarter of U.S. adults have increased the amount of time they spend...

25%reading reviews

24%online shopping

Because of this, social spending is on the rise...

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In 2010, advertisers spent almost

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$1,700,000,000on social media marketing in the U.S.

...and it’s expected to grow 30.2% annually

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However, 75% of women say ads on social networks

don’t encourage them to purchase.

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So what does influence them?

$

Friends, family, and other shoppers.

Consumers trust consumer reviews

12x more than the manufacturer’s description.

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70% trust the opinions of unknown users

trust recommendations from

people they know90%

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and how does this affect purchasing decisions ?

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Almost 50% of shoppers have made a purchase based on

a recommendation through a social media property.

74% of consumers rely on social networks

to guide purchase decisions

74%

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found the advice to be influential in

their purchasing decision.

receive advice from friends and family relating to a product purchase through a social

networking site.81%

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What happens to word of mouth?

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The average consumer mentions specific brands

90 times / per week in conversations with friends, family, and co-workers.

Social media amplifies word of mouth

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Over half a million tweets, 20% involve

asking and providing product information.

Especially on sites like

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53% of people on Twitter recommend

companies and/or products in their tweets.

43%

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deliver on their intention to buy the product.

18%

0

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Users who follow brands on Twitter are nearly 18% more likely to purchase

something from that brand than those who follow a brand on Facebook.

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Over

286,000haul videos act as

the ultimate “Shop & Tell”

or

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So what are people buying online?

MOST POPULAR ONLINE PURCHASES

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Books

ClothingDVDs, Games

Airline Tickets

Electronics

28%

24%16%

16%

16%

Social media

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is ideal for in-depth product reviews and products that

require a demonstration.

Like...

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Consumer Electronics

purchases, with 43.7% of purchases affected by word of mouth.

Online user reviews have the biggest

influence on consumer electronics

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This YouTube beauty guru has

476,553

subscribers

Make up

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Online Shoppers

67% of shoppers spend more online

after reading recommendations

from online community of friends.

or

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So how influential are these online reviews?

of respondents had watched

a user-generated review.

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64%

Source: a 2010 study by Internet Retailer

it helped them make a purchase decision- either for or

against a product or brand.

More than three-quarters of group said

31 Source: a 2010 study by Internet Retailer

listed the ability to see the product in action as their

favorite thing about video reviews.

81.3%

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But can social media improve your bottom line?

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...Oh yeah

are considered the most effective tactics for mobilizing consumers

to talk about products online.

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Brands with the highest social media activity / reviews

18%increasedrevenues by

Blogs, Facebook, Twitter, and Reviews

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So who’s doing a great job of this?

&

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purchase them directly within the video.

Give individual demonstrations/explanations

of each piece and allow you to

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22,000 site launches led to 800 orders (3.6% conversion rate)22,000

site launches led to 800 orders (3.6% conversion rate)

&

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‘Deal of the Day

exclusive for

Facebook fans only

Haul videos

bring products to life with a first-hand demonstration and customer review

&

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Great incorporation of

customer reviews / how-to videos take the risk out of buying products like soap online.

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Orabrush reached out to

top YouTubers to have them make a video review of their product if they liked it.

&

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The results...

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Branding is what they say about you after you leave the room.“ ”

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Are they saying the right things about your brand?