return on a share
TRANSCRIPT
Dr. Yan QuShareThis, Inc
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With the growth of the social web, we turn more often to friends and strangers for recommendations on where to go, what to eat, and what to buy.
SHARING IS THE CONNECTIVE THREAD OF THE SOCIAL WEB
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120 SOCIAL CHANNELS
95% OF ONLINE AUDIENCE
ShareThis Sharing Solutions
ShareThis is the largest sharing platform reaching 211 million people over 120 social channels on 2.8 MM sites. That’s 95% of the web!
2.8MM PUBLISHERS
YOUR AD
AUDIENCE IDENTIFICATION DELIVERY
HOW SHARETHIS WORKS
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Jessica reads an article about budget bedroom
ideas & decides to share it to her Facebook page using the ShareThis
widget!
This is Jessica! She’s busy chatting and
browsing the web…
ShareThis observes the share and can then target
Jessica and her friends with advertising messages
tailored to their interests
All social actions are then cataloged and segmented to build out custom audience profiles based on social sharing behaviors.
YOUR AD
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Sharing widgets across 120+ social channels
Widget Stats
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THE
IMPACT OF SHARINGIS WELL-DOCUMENTED
73% of survey respondents process information more deeply, thoroughly, and thoughtfully when they share it.
70% of people trust consumer reviews they found online.
38% During a four-week test, Starbucks’ Facebook fans and “friends of fans” were 38% more likely to make a purchase.
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8
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BUT HOW DOES IT ALL TRANSLATE TO
MONETARY IMPACT?
SHARETHIS COMMISSIONED THE FIRST STUDY OF ITS KIND TO MEASURE THE IMPACT OF SHARING ON THE PURCHASE PROCESS
PURCHASEINTENT
RECOM--MENDATION
PRICE
BRAND
PREMIUM
GENERIC
LUXURY
ECONOMY
TYPE
SOURCE
STRENGTH
FamilyFriendAcquaintanceStrangerProfessional
ExcellentGoodModerateBad
In-personSocial NetworkTrade Publication
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LIKERT SURVEY METHOD DO NOT CAPTURE THE TRADEOFF IN REAL PURCHASE SITUATIONS
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CONJOINT METHODOLOGY USES STATISTICAL MODELING TO DETERMINE THE RELATIVE IMPORTANCE OF VARIOUS FACTORS AFFECTING THE CONSUMER PURCHASE DECISION
http://sibmbaw11.blogspot.com/
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BRAND
PRICE
TYPE
STRENGTH
SOURCE
REC
OM
MEN
DA
TIO
N
WHICH OF THE FOLLOWING TWO PRODUCTS ARE YOU MORE LIKELY TO PURCHASE?
CONJOINT METHODOLOGY USES STATISTICAL MODELING TO DETERMINE THE RELATIVE IMPORTANCE OF VARIOUS FACTORS AFFECTING THE CONSUMER PURCHASE DECISION
x
Premium Brand
10% higher
Facebook Post
Friend
Economy Brand
10% lower
Car & Driver Review
Professional
Sample conjoint survey screen
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Study Details
Three industries (consumer packaged goods, mini-tablets and automobile)
Two studies (traditional Likert rating scales and conjoint analysis)
Four types of prices (10% lower pricing, comparable pricing, 5% higher pricing, 10% higher pricing)
Four types of brands (economy, generic, luxury, premium)
Four recommendation strengths (bad, moderate, good, excellent)Six thousand responses (1,000 for each industry / study)
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RECOMMENDATIONS ARE MORE IMPORTANT TO THE CONSUMER PURCHASE DECISION THAN BOTH BRAND AND PRICE
Recommendations account for 57% of the consumer purchase decision:
REC-OM-MEN-DA-
TIONS57%
PRICE28%
BRAND15%
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SIMILAR PATTERN ACROSS DIFFERENT VERTICALS
58%
34%
8%
56%
24%
19%
56%
25%
19%
Autos Electronics CPG
Recommendations
Price
Brand
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6.3%
7.3%
9.5%
10.6%
ONLINE SHARES ARE NEARLY AS VALUABLE AS IN-PERSON RECOMMENDATIONS
Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
Impact on purchase intent
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RETURN ON ‘EXCELLENT’ RECOMMENDATIONS
Highly positive shares yield a return of 9.5%
Consumer Ratings Consumer Reviews Online Shares In-Person Recommendations Professional Reviews
6.3%
7.3%
9.5%
10.6% 10.2%
6.0%
6.2%
11.2
%
13.2
%
7.1%
7.6%
8.1%
9.3%
10.5
%
5.7%
8.1%
9.2%
9.3%
10.0
%
CPG Electronics Autos
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NEGATIVE RETURN ON ‘BAD’ RECOMMENDATIONSNegative shares lower purchase intent by 11.0%
Consumer
Ratings
Consumer
Review
s
Online S
hares
In-Person Reco
mmendati
ons
Profes
sional
Review
s
(11.3%) (11.2%)(11.0%)
(11.2%)
(10.2%)
(13.
1%)
(13.
1%)
(12.
5%)
(12.
9%)
(10.
6%)
(10.
6%)
(10.
5%)
(10.
6%)
(10.
5%)
(10.
2%)
(10.
0%)
(9.9
%)
(10.
0%)
(9.9
%)
CPG Electronics Autos
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THE SOURCE OF THE SHARE IS IMPORTANT
CPG Electronics Autos
8.0% 7.7% 7.5%
12.7%
8.5% 9.0%
14.0%
9.6%
10.7% 10.5%
11.7%
Strangers Acquaintances Close Friends / Family Professionals
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FOR AUTO BRANDS, AN EXCELLENT SHARE IS WORTH $3,708
Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
Professional Reviews
$2,312
$3,277
$3,708
$3,766
$4,702
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Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
Professional Reviews
$22.09
$23.56
$24.91
$28.76
$32.44
FOR ELECTRONICS BRANDS, AN EXCELLENT SHARE IS WORTH $25
$0.42
$0.44
$0.92
$1.05
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Consumer Ratings
Consumer Reviews
In-Person Recommendations
Online Shares
FOR CPG BRANDS, AN EXCELLENT SHARE IS WORTH $0.92
That’s how much more consumers are willing to pay for the average supermarket product if it was positively shared about by someone in their social network.
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Key Findings
Recommendations have more impact on a consumer’s decision-making process than brand or price
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Recommendations have more impact on a consumer’s decision-making process than brand or priceHighly positive online shares generate a 9.5% increase in purchase intent, while negative reviews can decrease intent by 11.0%
Key Findings
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Recommendations have more impact on a consumer’s decision-making process than brand or priceHighly positive online shares generate a 9.5% increase in purchase intent, while negative reviews can decrease intent by 11.0%
Online sharing has a measurable effect on a product’s prices, driving incremental value by as much as $3,708 for automobiles
Online shares are nearly as valuable as in-person recommendations
Key Findings
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WHAT DOES IT ALL MEAN?
DRIVE EARNED MEDIA SUCCESS WITH SOCIAL INSIGHTS
VIEW CURRENT CUSTOMERS AS MARKETING PARTNERS
ENABLE CUSTOMER EVANGELISM
MONITOR YOUR ONLINE PRESENCE THROUGH SHARING
ADDRESS NEGATIVE REVIEWS OPENLY AND HONESTLY
Use social signals to determine where and when to spend media dollars
UNLOCK THE VALUE OF SHARING WITH PAID MEDIA
Use social data to identify users who shared relevant content
IDENTIFY
TARGETAlign messaging with sharers’ interests and deliver media on the
content with which they engage
OPTIMIZE
Heavy-up deployment around key events to drive conversion when
conversations are abuzz
Monitor sharing trends in real time and capitalize on user intent as quickly
as possible throughout the purchase funnel
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THE VIRTUOUS CIRCLE OF SHARING
SHARING
INSIGHTS
OPTIMIZATION
EARNED MEDIA
LARGER AUDIENCE
