SOCIAL PLATFORMS MEMBER BRIEFING NYC OCTOBER 22, 2015

Transcription

1 SOCIAL PLATFORMS MEMBER BRIEFING NYC OCTOBER 22,

2 BENCHMARKING DIGITAL PERFORMANCE L2 Delivers Data-driven Insights to Brands Seeking Greater Return on their Digital Investments RESEARCH BENCHMARKING EDUCATION 2

3 UPCOMING RESEARCH Digital IQ Index : BEAUTY: CHINA Intelligence Report: SOCIAL PLATFORMS Digital IQ Index : SPECIALTY RETAIL Digital IQ Index : FASHION Intelligence Report: AMAZON Digital IQ Index : BEAUTY Digital IQ Index : BIG BOX Digital IQ Index : WATCHES & JEWELRY 3 3

4 November 3rd, :15 AM to 12:30 PM The New School 4

5 STRATEGY MODULES Modules Blend Sector Insight, Performance Benchmarks, and Identification of Brand-Specific Opportunities Omnichannel Retail The Digital Organization Social Content & Strategy Video Localization Data & Targeting 5

6 SOCIAL PLATFORMS 2015 INTRODUCTION 6

7 AD BUDGETS ARE SHIFTING YOY Change in Media Ad Spending Worldwide In Billions % 40% 43.0% 42.5% 30% 20% 10% 0% -10% 12.7% Video Social Media Search 6.2% Display 2.6% TV Print -4.9% Source: emarketer, August

8 FACEBOOK + ASIA + 7 DWARVES Active Users (In Millions), Q Leading Social Networks Worldwide Facebook Inc. APAC Platform Other Western Platform Facebook QQ WhatsApp Facebook Messenger QZone WeChat Instagram Twitter Baidu Tieba Google+ Skype Viber Tumblr LINE Snapchat Sina Weibo ,490 Source: Facebook; We Are Social; WhatsApp; Twitter; Tumblr; LinkedIn; Google 8

9 FACEBOOK = MEDIA COMPANY Facebook Growth and Engagement by Quarter Q Q2 2015, n=782 accounts > 100,000 followers, Non-Global pages Facebook Ad Revenue Growth vs. Previous Year s Quarter 124, , , , , , ,000 Average Absolute Post Likes Weekly Post 64.5% 116,272 Source: emarketer, July 2015 Facebook Ad Revenue Growth 53.3% 121, , , % 43.0% Q Q Q Q % 60% 50% 40% 30% 20% 10% 0% 9

10 DIVERSE REVENUE STREAMS Facebook Revenue Projections By Stream 2014E 2018E Facebook Revenue Projections USD Billions 2014E 2018E $35,000 $30,000 $25,000 $30,265 $25,453 $20,000 $15,000 $10,000 $5,000 $12,039 $16,303 $20,791 Source: ValueWalk, July 2014 $- 2014E 2015E 2016E 2017E 2018E 10

11 NIMBLENESS Facebook Inc. Product Innovations & Acquisitions, Last 12 Months Media Off-Platform Messaging Emerging Markets Video E-Commerce Virtual Reality *Note: Excludes auto-play video products 11

12 LEADS TO TAKING SHARE Net Digital Ad Revenue Share Worldwide, by Company % of Total Digital Ad Spending Worldwide % 30.4% 8.0% 9.6% Source: emarketer, September

13 RIPE FOR DISRUPTION U.S. Cable Prices vs. Inflation Source: FCC, Bureau of Labor Statistics 13

14 THE RESPONSE Cable Company Disruption, YouTube YouTube acquired by Google Apple TV Netflix / Hulu Roku HBO GO Amazon Instant Video 14

15 ONLINE VIEWERS ARE YOUNG U.S. Monthly Online TV Program Viewers, by Age Group Share of Total Online Adult Audience Q % 22% 21% 15% 9% 5% Source: MarketingCharts analysis of Nielsen 15

16 WEALTHY Plans to Cut the Cord Across Income Groups Next 12 Months 2015 $100k+ $75k-$100k $50k-$74k $25k-$49k <$25k 0% 5% 10% 15% 20% 25% Source: Morgan Stanley, 5 th Annual Streaming Video Survey, March

17 AND INCREASINGING INCREMENTAL Unique U.S. Digital Video Viewers vs. TV, in Thousands January 2015 Other Ages Ages , , ,000 50, % 27% 33% 70% 73% 67% 43% 41% 41% 57% 59% 59% TV YouTube Facebook Netflix Hulu Instagram Source: comscore, January 2015, Nielsen Media Research 17

18 SOCIAL TAKES ON VIDEO ADVERTISING Social Takes on Video Video Launches 18

19 AND IN THE PAST MONTH ALONE... New Product Roll Outs, September October 2015 *Expected Launch Date 19

20 SOCIAL PLATFORMS 2015 STUDY PREVIEW 20

21 STUDY PREVIEW L2 Intelligence Report: Social Platforms L2 Intelligence Report: Social Platforms 2015 Third annual report to be released in October 2015 Report audits 400+ brands across Auto, Beauty, Beverages, Consumer Electronics, CPG, Fashion, Retail, Sportswear, and Watches & Jewelry Data collection across U.S., Canada, U.K., France, Germany, Brazil, Russia, South Korea, Japan, China PLATFORMS: WHERE TO PLAY VIDEO SOCIAL GOES MOBILE GLOBAL / LOCAL MODELS 21

22 SOCIAL PLATFORMS 2015 WHERE TO PLAY 22

23 NOT ALL PLATFORMS ARE EQUAL Share of Total Interactions, By Platform U.S., U.K., France, Germany, Brazil, Russia, Canada, South Korea, Japan; N=431 Brands June 1, 2015 July 31, 2015, N=4,136 URLs (1,534 Facebook, 702 Instagram, 1,006 Twitter, 894 YouTube) Facebook 6.0% Platform Interactions Likes + Comments YouTube 58.9% Instagram 34.6% Likes + Comments + Shares Views Twitter 0.5% Favorites + Retweets 23

24 Number of Posts INSTAGRAM OVERTAKES FACEBOOK Average Brand Post Frequency, by Quarter Facebook vs. Instagram Q Q2 2015, n=190 Brands Facebook Instagram Q Q Q Q Q Q Q

25 EVOLVING STRATEGIES: CHANEL Share of Total Chanel Interactions, By Platform N=7 Chanel Social Accounts September 1, 2012 August 31, Facebook 14% Twitter 0.2% Facebook 8% Twitter 1% Facebook 8% Instagram 13% Twitter 2% YouTube 86% YouTube 91% YouTube 77% 25

26 EVOLVING STRATEGIES: DIOR Share of Total Dior Interactions, By Platform N=4 Dior Social Accounts September 1, 2012 August 31, Facebook 23% Facebook 7% Instagram 5% Facebook 7% Twitter 0.4% YouTube 77% Instagram 0% Twitter 0.1% YouTube 88% YouTube 55% Instagram 37% Twitter 1% 26

27 EVOLVING STRATEGIES: LOUIS VUITTON Share of Total Louis Vuitton Interactions, By Platform N=9 Louis Vuitton Social Accounts September 1, 2012 August 31, Facebook 24% Facebook 10% Instagram 13% Facebook 12% YouTube 73% Instagram 3% Twitter 0.1% YouTube 76% Twitter 1% YouTube 56% Instagram 31% Twitter 1% 27

28 EVOLVING STRATEGIES: LOUBOUTIN Share of Total Louboutin Interactions, By Platform N=4 Louboutin Social Accounts September 1, 2012 August 31, Twitter 1% Instagram 35% YouTube 1% Twitter 1% Facebook 22% Twitter 0.9% Facebook 14% Facebook 63% Instagram 77% Instagram 85% 28

29 NEW BELLWETHERS Share of Total Instagram Posts vs. Interactions by Parent Company US, UK, Spain, Brazil, and Korea, N=55 Beauty Brands June 1, 2015 July 31, 2015, N=110 URLs Anastasia Beverly Hills 7% Share of Posts L'Oreal Group 29% Coty 7% LVMH 10% Other 24% Shiseido Co. 6% The Estee Lauder Companies 12% Tarte 3% Too Faced Cosmetics 2% Share of Interactions Coty 2% Anastasia Beverly Hills 37% LVMH 11% L'Oreal Group 21% Other 4% Shiseido Co. 4% Tarte 7% Too Faced Cosmetics 7% The Estee Lauder Companies 7% 29

30 ANASTASIA KNOWS WHAT S POPULAR Anastasia: Posts with Highest Engagement (Owned), by Platform* June 1, 2015 July 31, 2015 Top posts are exclusively trend-driven (brow shaping, contouring, lip plumping) and tutorial-based. The brand posts 5-15 times per day, often repurposing UGC with full product info. *U.S. / Global accounts 30

31 AND WHO S POPULAR Anastasia: Use of Social Advocacy Model for Product Launch Anastasia partners with over 600 influencers directly, providing them with products before a launch. brand also reposts its influencers content an easy source of engaging material. Source: repost 89.5K 67K Likes 31

32 DRIVING BUSINESS RESULTS Top Five Prestige Beauty Brands, by U.S. Growth Percent Change in Sales, Total and Online January 2015 June 2015 Top 5 Brands: Total Sales Growth Top 5 Brands: Online Sales Growth 1. Anastasia Cosmetics 1. Anastasia Cosmetics 2. IT Cosmetics 2. Kiehl s 3. Too Faced Cosmetics 3. Tarte 4. NARS 4. NARS 5. Tarte 5. Too Faced Cosmetics Source: The NPD Group 32

33 PRIOTIZING PLATFORM STRATEGY Platform Role Earned media at scale Testing and learning with content types (100% reach) Advocacy relationships with influencers Scaled paid media with targeted reach Digital video at ~1/3 of YouTube CPMs Advocacy relationships with vloggers Repository for campaign videos Mix of push (e.g. pre-roll) and pull content (e.g. tutorials) Offline events tie-ins (e.g. Fashion Week) Engaging traditional editorial Customer service 33

34 SOCIAL PLATFORMS 2015 THE VIDEO OPPORTUNITY 34

35 CONTENT QUALITY IS AN OBSTACLE Obstacles to Video Marketing March 2014, n=398 Marketing and Sales Decision Makers, Worldwide Related to Content Quality Creating Compelling Content 46% Lack of Budget for Video 41% Attributing a ROI to Video Lack of In-House Resources 36% 34% Lack of Effective Strategy Producing Studio-Quality Video 25% 28% Distributing Video Content 20% Lack of Management Buy-in 11% Source: Ascend2, "Social Media Strategy Research Summary Report," Dec 15,

36 A VIEW IS NOT A VIEW Comparing and Contrasting: View Metrics by Platform View Count Threshold View Initiation Average Length 3s Auto-Play 67 Organic: when play initiates Paid: 30s /at completion Not Publically Available Push Play 113 Auto-Play 12 36

37 CONTENT SYNDICATION Video Content on Instagram, Facebook and YouTube Beauty & Hair Care Brands Q4 2014, n=419 videos posted to YouTube, Facebook and/or Instagram 37

38 YOUTUBE CHANNELS: SPEND VS. SCALE YouTube: Average Organic vs. Total Brand Channel Views Beauty & Hair Care Brands April 2015, n=80 Beauty & Hair Care YouTube Channels 38

39 SCALE: VLOGGERS VS. BRANDS YouTube: Average Organic Vs. Total Brand Channel Views Beauty & Hair Care Brands April 2015, n=80 Beauty & Hair Care YouTube Channels Beauty & Hair Care Brands Top Vloggers 39

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41 TOTAL VIEWS: 2,931,070 41

42 CHANEL: MAGNIFYING TENTPOLES Chanel Videos: Métiers d Art 2014/5 Paris-Salzburg November 2014 April 2015 Campaign Video Influencer Interviews Behind the Scenes Material Event Footage TOTAL VIEWS: 10,224,941 42

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44 Engagement Rate: 4.9% 44

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46 Engagement Rate: 18.6% 46

47 CHINA: VIDEO = TIME SPENT China: Share of Desktop Online Time Spent By Activity August Other 23% Other 27% News & Information 5% Gaming 5% Ecommerce 8% Search Engines 10% Online Video 35% Social Media 14% Financial Services 5.6% Gaming 6% Ecommerce 8% Search Engines 10% Online Video 33% Social Media 10% Source: iresearch 47

48 EYEBALLS Video Views, Millions Q Q Youku iqiyi Sohu Video Q Q Q Q Q Source: Pacific Epoch 48

49 ADVERTISING ON VIDEO SITES iqiyi Homepage Main Carousel (H&M) Homepage Top Banner (Pepsi) Youku Campaign Page (Pantene) Tencent Homepage Carousel (Dior) Banner (Proya) Pause Banner (Maybelline) Banner in Search Result (Red Bull) Homepage Bottom Banner (Pepsi) Under Video Banner (Dior) Campaign Page (Budweiser) Pre-roll in PPS App (Clinique) LeTV Campaign Page (Clear) Sohu Campaign Page (Lux) Pre-roll (Hennessey) 49

50 SOCIAL PLATFORMS 2015 SOCIAL GOES MOBILE 50

51 Visual WHERE TO PLAY: MOBILE / VISUAL Mobile / Visual Power Grid Mobile 51

52 PUTTING IT IN PERSPECTIVE Top Mobile Messaging Apps Monthly Active Users, Global October 2010 February 2014 LINE WhatsApp WeChat Viber SnapChat Tango Facebook Messenger Instagram Source: Business Insider Intelligence 52

53 PUTTING IT IN PERSPECTIVE Top Mobile Messaging Apps Monthly Active Users, Global October 2010 February 2014 LINE WeChat Viber SnapChat Tango Source: Business Insider Intelligence 53

54 FEATURES DRIVE ADOPTION Features Available on Social-Mobile Messaging Platforms September 2015 Feature Voice Call Video Call Social Ad Products P2P Payments B2C Direct Messaging E-Commerce Platform Call Taxi Loyalty Programs 54

55 WECHAT WINS Weibo and WeChat Monthly Active Users Q Q Sina Weibo WeChat Q Q Q Q Q Q Q Q Q Q

56 SINA WEIBO METRICS GOING DOWN Sina Weibo Year Over Year Performance Metrics By Category September 2015 Metrics Beauty (n=48) Beer & Spirits (n=3) Fashion (n=39) Personal Care (n=15) Retail (n=39) Sportswear (n=46) Watches & Jewelry (n=36) Index YOY Follower Growth (%) -16% -5% 24% -9% -4% 17% 17% 1% YOY Engagement Growth (%) -42% -85% 35% -78% -64% 41% -5% -15% YOY Post Frequency Source: L2 Inc. 56

57 WECHAT STILL SCALING Global versus Local Brands Key Brand Social Media Performance Metrics Sept 2015 Personal Care Beauty PERSONAL CARE BEAUTY Metrics Global Brands (n=54) Local Brands (n=21) Sina Weibo: Avg Community Size 666, ,730 Sina Weibo: Avg Interactions Per Post Metrics Global Brands (n=78) Local Brands (n=22) Sina Weibo: Avg Community Size 545, ,548 Sina Weibo: Avg Interactions Per Post WeChat: Average Views per Post 3,135 1,541 WeChat: Average Views per Post 10,441 4,233 WeChat: Support for Native Payment 11% 38% Source: L2 Inc. WeChat: Support for Native Payment 12% 36% 57

58 WECHAT ENGAGEMENT WeChat Top 10 Most Viewed Posts #1 (100,000+) Lancôme Young Red Envelope Contest / Gamification #2 (100,000+) Laneíge New Year Sampling Contest / Sampling #3 (95,333) Lancôme White Day Gift Contest / Sampling #4 (88,512) Lancôme Génifique Gift Box GWP Promotion #5 (86,741) Laneíge Sleeping Mask Contest / Sampling #5 (82,485) Laneíge Point Redemption Membership Program #7 (77,377) Estée Lauder The Little Brown Bottle Contest / Sampling #8 (75,975) Estée Lauder CNY Lucky Bag GWP Promotion #9 (73,920) Laneíge Shake to Win Contest / Gamification #10 (71,147) Lancôme Génifique Eye Sampling Contest / Sampling 58

59 WECHAT ADVERTISING Sephora Dior Cadillac Coach H5 Video Product UGC Head & Shoulders Lancôme Coca Cola Piaget UGC Product Customized Stickers Video 59

60 LUXURY GETS IN THE GAME CRM / Commerce L Oréal Paris Cartier L Oréal Paris launches WeChat store (via JD.com) and allows followers to earn loyalty points for redemption by participating campaigns on WeChat Cartier allows followers to virtually discover its Clé watch utilizing touch/swipe/shake technology; followers can deposit to buy with WeChat payment and make in-store reservation to complete purchase 60

61 BURBERRY LIVE LFW S/S 2015 September, 2014 LFW F/W 2015 February, 2015 London in LA April, 2015 LFW S/S 2016 September,

62 SOCIAL PLATFORMS 2015 GLOBAL / LOCAL MODELS 62

63 SOME VOICES LOUDER THAN OTHERS Share of Total Posts & Total Interactions on Facebook, By Market U.S., U.K., France, Germany, Brazil, Russia, Canada, South Korea, Japan June 1, 2015 July 31, 2015, N=429 Brands, 1,534 Facebook Accounts Share of Posts Share of Interactions South Korea 9% United States 17% United Kingdom 12% Russia 9% Brazil 11% Canada 9% Japan 11% France 11% Germany 11% United Kingdom 4% South Korea 2% Russia 1% United States 30% Japan 9% Germany 7% Brazil 38% Canada 3% France 6% 63

64 TRANSLATES TO MONETIZATION Facebook Average Revenue per User, by Region Source: Quartz, This is the magic ingredient in Facebook s revenue growth, January 29,

65 BENEFIT: CENTRALIZED LAUNCH Benefit Cosmetics: Global Assets for They re Real Color Launch Facebook / Sina Weibo Posts by Region, June 1, 2015 July 31, 2015 US UK ES BR KR CN Teaser Post Campaign Hero Image Cover Photo Campaign Hero Video *Regional Facebook pages (US, UK, ES, BR, KR) plus Sina Weibo (CH) 65

66 MARKETS LAYER ON LOCAL ASSETS Benefit Cosmetics: Local Assets for They re Real Color Launch Facebook / Sina Weibo Posts by Region, June 1, 2015 July 31, 2015 US UK ES Linking to Allure product review from social media Reposting influencer content Tips and tricks from local Benefit store associates U.K.-specific campaign video shot in London More local events than any other market Editorial content from TELVA magazine Partnering with relevant vloggers for product video *Regional Facebook pages (US, UK, ES, BR, KR) plus Sina Weibo (CH) 66

67 MARKETS LAYER ON LOCAL ASSETS Benefit Cosmetics: Local Assets for They re Real Color Launch Facebook / Sina Weibo Posts by Region, June 1, 2015 July 31, 2015 BR KR CN Regular use of QR codes in social assets Contests to win product drove thousands of reblogs Linking to PTlanguage behindthe-scenes video *Regional Facebook pages (US, UK, ES, BR, KR) plus Sina Weibo (CH) Hauls / tutorials with local influencers for Asian eye shapes Leveraging global creative assets, but all text is translated 67

68 BENEFIT: LOCAL COLOR STORIES Benefit Cosmetics: U.S. vs. U.K. Color Stories, They re Real Color Instagram Posts by Region, June 1, 2015 July 31, 2015 US UK 68

69 BARE MINERALS: QUICK & EASY WINS BareMinerals: Localization Tactics Facebook Posts by Region, June 1, 2015 July 31, 2015 Takeaway: Product assortment in flat lay post is customized by market, as is passport image. Takeaway: Bridal content is highly editorial in U.S., and more natural-looking in Brazil. 69

70 SOCIAL PLATFORMS 2015 CONCLUSIONS 70

71 CONCLUSIONS TV = VIDEO = SOCIAL? GOLDEN AGE OF DUOPOLY THE MYTH OF ORGANIC REACH SOCIAL/MOBILE/VIDEO IQ SAME FLEAS, DIFFERENT DOGS 71

72 QUESTIONS? 72