state of the retail q2 2012

August 2012

State of the U.S. Online Retail Economy in Q2 2012

Gian Fulgoni, Chairman, comScore, Inc.

Andrew Lipsman, VP Industry Analysis, comScore, Inc.

Note: A copy of this presentation will be sent to all attendees within two business days of today’s webinar

2 © comScore, Inc. Proprietary.

Data sourced from comScore’s global panel of 2 million Internet

users via behavioral tracking and custom surveys

E-Commerce data includes all worldwide buying on U.S.

sites

Unless explicitly stated otherwise, the term e-Commerce

refers to online retail spending, as measured by

comScore, which excludes travel, autos and auctions

Behavioral activity through June 2012

Survey conducted week of July 30, 2012 (n=2000)

Consumer Measurements:

– Online Buying

– Attitudes and Sentiment

– Site Visitation

– Demographic Segments

– Mobile and Portable e-Commerce

2 million person panel

360°View of Consumer Behavior Analysis Parameters


Topics for Today

Review of Key Macroeconomic Trends

Consumer Perceptions of the Economy

Retailer and Product Category Overview

The Digital Endcap: Retailers as Publishers

The Impact of Mobile and Tablets on Shopping and Buying

Social Commerce Trends

Key Takeaways

Q & A


Validation of comScore Sales Data:

Comparison of comScore data to U.S. Department of Commerce

Billio

ns (

$)

Dept. of Commerce (DOC) comScore Estimate of DOC

Quarterly U.S. e-Commerce Sales* ($ Billions) Source: comScore & U.S. Department of Commerce (DOC)

Quarterly U.S. e-Commerce Growth* vs. YA Source: comScore & U.S. Department of Commerce (DOC)

% G

row

th v

s. Y

A

Dept. of Commerce (DOC) comScore Estimate of DOC

*Note: To be consistent with DOC, comScore estimate excludes travel and

event tickets but includes auction fees and autos.

comScore Estimate of Mobile e-Commerce

-10%

0%

10%

20%

30%

40%

50%

2005 -

Q1

2005 -

Q2

2005 -

Q3

2005 -

Q4

2006 -

Q1

2006 -

Q2

2006 -

Q3

2006 -

Q4

2007 -

Q1

2007 -

Q2

2007 -

Q3

2007 -

Q4

2008 -

Q1

2008 -

Q2

2008 -

Q3

2008 -

Q4

2009 -

Q1

2009 -

Q2

2009 -

Q3

2009 -

Q4

2010 -

Q1

2010 -

Q2

2010 -

Q3

2010 -

Q4

2011 -

Q1

2011 -

Q2

2011 -

Q3

2011 -

Q4

2012 -

Q1

Correlation: 0.93


State of the Economy

A Review of Key Macroeconomic Trends


$42 $53 $67 $82 $102

$123 $130 $130 $142 $162

$87 $30

$40 $51

$61

$69

$77 $84 $80

$85

$94

$54

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1-Q22012

$72 $93

$117 $143

Retail

Travel

+26%

+33%

+26%

+28%

+20%

+24% +24%

+13%

$171 $200

+20%

+12%

+6%

+9%

Retail e-Commerce spending is up +16% Y/Y, posting $87 billion in

sales through June 2012

$214

0%

-5%

$209

U.S. e-Commerce Dollar Sales Growth ($ Billions) Source: comScore e-Commerce Measurement

+10%

+6%

$228

+16%

+9%

$141 +29%

+26%

+22%

+19%

+17%

+7%

-2%

+9%

+12% +13%

$256

+14%

+11%


*Note: The U.S. Department of Commerce calculation includes total

retail and food service sales, which also includes motor vehicles and

parts dealers.

3% 3% 3% 3% 2% 2%

1%

-5% -5% -6% -6%

0%

4% 5% 6% 7%

6% 4% 4% 3%

6%

2%

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

Quarterly Retail & Food Services Sales Growth vs. YA

(excluding autos, gas and food/beverage)

4% 4% 3% 5% 4% 2%

1%

-8% -10% -9% -7%

2%

6% 7%

5%

8%

7% 7% 7% 5%

8% 4%

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

17%

23% 23% 19%

11%

13%

6% -3% 0% -1% -2%

3%

10%

9% 9%

11% 12% 14%

13%

14% 17%

15%

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

The channel shift to online was particularly evident in Q2 2012, with

online retail growing nearly 4x the rate of total consumer spending or

7x on an apples-to-apples basis

Quarterly e-Commerce Sales Growth vs. YA

Source: comScore e-Commerce Measurement

Quarterly Retail & Food Services Sales Growth* vs. YA

Source: U.S. Department of Commerce (DOC)


4.3%

3.7% 4.0%

4.6%

5.1%

4.3% 4.5%

5.3%

5.9%

5.0%

5.3%

6.4% 6.7%

5.9%

6.3%

7.4% 7.3%

6.5% 6.6%

7.6% 7.7%

6.8% 6.9%

7.7% 8.1%

7.1% 7.1%

8.0%

8.6%

7.7% 7.6%

8.9%

9.4%

8.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

The shift of consumer spending to the Internet continues to

accelerate, with the e-Commerce share of spending hitting 8.7% in

Q2, up 1.6 points in only two years

*Note: e-Commerce share is shown as a percent of DOC’s Total Retail Sales

excluding Food Service & Drinking, Food & Bev. Stores, Motor Vehicles &

Parts, Gasoline Stations and Health & Personal Care Stores.

e-Commerce Share of Corresponding Consumer Spending* Source: comScore for e-Commerce & U.S. Department of Commerce (DOC) for Retail

e-C

om

me

rce S

hare

e-Commerce share peaks in

colder seasons (Q4 & Q1)

Q2 2012 share: +1.6 points

vs. Q2 2010


$15.1

$12.4

$13.5

$12.1

$17.5

$15.0 $14.8

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12

+9% +7% +12% +15% +16% +21% +10% +6% +2% +8% +3% +9% +12% +19%

$10.0 $10.3 $9.4

$8.9

$12.2 $12.1

$11.0

Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12

+26% +39% +28% +31% +22% +18% +17%

All income segments showed double-digit growth versus 2011, with mid

and lower income consumers leading the way

$50K - $99K

(43% of Total)

Under $50K

(23% of Total)

$100K or more

(34% of Total)

e-Commerce Sales by Income Segment ($ Billions)

Growth vs. YA Source: comScore e-Commerce Measurement

$18.3

$15.3 $14.6

$15.4

$20.0

$17.2 $17.3

Q4 '10Q1 '11Q2 '11Q3 '11Q4 '11Q1 '12Q2 '12


Consumer Perceptions of the Economy


Overall consumer sentiment slid in July, with 56% of consumers

rating the economy as poor, up from 49% in April

Percent of Consumers Who View The Economy as Poor

Q. How would you rate economic conditions today? Source: comScore Surveys

77% 68% 66%

61% 61% 59% 62% 61% 52%

59% 60% 62% 60% 54%

49% 56%

Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Aug-11 Oct-11 Jan-12 Apr-12 Jul-12

Increase in negative sentiment driven by

Under $50k (61%) and Baby Boomers (60%)


Concern over unemployment saw a +7 point swing from April,

but continued to lag behind prices, the main economic concern

Percent of Respondents Citing Their One Most Important Issue

46%

40% 42%

50%

42% 44% 45%

36%

27%

37% 38%

31%

26%

33%

28%

32% 32%

29%

33% 30%

29%

42%

54%

37% 37%

43%

48%

44%

15% 13% 13%

9% 10%

13%

9% 7% 7%

12% 12%

10% 11% 10%

8% 8% 8%

7% 9%

8%

10% 11%

7%

8% 9%

10% 11%

8%

Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12

Unemployment /Job Security

RisingPrices

FinancialMarkets

Real Estate / HomeValues

Q. Based on your current situation, which one of the following economic conditions most concerns you? Source: comScore Surveys


Retailer and Product Category Overview


Compared to 2011, retail e-Commerce saw an increase in every key metric,

including dollars per buyer, total buyers & transactions per buyer

Metric Q2 2011 Q2 2012 % change

Dollar Sales ($ Billions) $38 $43 +15%

Dollars per buyer $221 $242 +10%

Buyers (Millions) 170 178 +5%

Average Order Value $70 $74 +6%

Transactions (Millions) 539 584 +8%

Transactions per Buyer 3.2 3.3 +3%

Buyer Penetration (Total Internet) 70% 72% +3%

Key e-Commerce Buyer and Transaction Measures

Q2 2012 vs. YA Source: comScore e-Commerce Measurement


All product categories showed at least +10% growth, with digital

content and consumer electronics showing the highest growth

Q2 2012 e-Commerce Sales Growth vs. YA by Retail Category Source: comScore e-Commerce Measurement

Q2 growth rates of 15% or

higher

Product Category Q2 2012 Growth

vs. YA

Digital Content and Subscriptions Very Strong

Consumer Electronics (x PC Peripherals) Very Strong

Flowers, Greetings & Misc. Gifts Very Strong

Computers/Peripherals/PDAs Very Strong

Apparel & Accessories Very Strong

Event Tickets Very Strong

Consumer Packaged Goods Strong

Jewelry & Watches Strong

Home & Garden Strong

Books & Magazines Strong

Sport & Fitness Strong

Office Supplies Strong

Video Games, Consoles & Accessories Strong

Furniture, Appliances & Equipment Strong

Q2 growth rates of 10-14%


While Amazon remains the leader in unique visitors to retail sites,

Apple and Wal-Mart each showed strong gains versus year ago

Avg. Monthly UVs (MM) on Select Retail Sites in Q2 2012 Source: comScore Media Metrix, U.S.

+7%

+24%

+23%

-5%

+5%

+7%

+52%

+51%

+17%

Y/Y Change

12.4

14.7

14.9

18.3

23.2

27.3

41.4

47.5

100.4

Sears.com

The Home Depot, Inc.

Ticketmaster

Best Buy Sites

Target Corporation

Netflix.com

Wal-Mart

Apple.com Sites

Amazon Sites


0-40 Index: 40-80 80-120 120-160 160+

Compared to the overall retail e-Commerce market, Amazon.com

heavily over-indexes for consumer electronics, toys and books

Product Category Share at Amazon Indexed to

Retail e-Commerce (Q2 2012)

Nodes indicate range of Amazon’s index to Total Internet share composition

Computers/Peripherals/PDAs

Apparel & Accessories

Consumer Electronics (x PC

Peripherals)

Office Supplies

Books & Magazines

Home & Garden

Toys & Hobbies

0-40 Index: 40-80 80-120 120-160 160+


Groupon is still the leader in monthly unique visitors among coupon

sites. In June, visits to Groupon via mobile eclipsed PC visitors

Avg. Monthly UVs (MM) on Select Coupon

Sites in Q2 2012 Source: comScore Media Metrix, U.S.

-5%

N/A

-35%

-10%

N/A

+30%

+89%

+29%

+116%

+53%

Y/Y Change

* - WhaleShark Media includes RetailMeNot.com, Deals2Buy.com,

CouponShare.com and CouponsEven.com

1.3

1.5

1.6

1.8

2.0

2.1

6.3

6.7

7.5

11.8

FatWallet.com

BradsDeals.com

MyPoints Sites

CouponAlert.com

DealsPL.US

DeedOrGreed.com

Coupons, Inc.

LivingSocial

WhaleShark Media

Groupon

Unique Visitors to Groupon in June 2012 Source: comScore Media Metrix & Mobile Metrix, U.S., 18+

Groupon (via PC)

11.9 million

Groupon (via mobile*)

17.7 million

* includes mobile web and mobile app


2010- 1Q

2010-4Q

2011- 4Q (e)

4Q Share of $ Sold

1 Food & Drink 31% 26% 14% 16%

2 Beauty, Spa & Massage 20% 20% 13% 16%

3 Clothing & Accessories 2% 4% 10% 2%

4 Health, Medical & Dental 3% 5% 9% 14%

5 Travel & Hospitality 2% 2% 9% 13%

6 Photography & Photo Services 2% 4% 7% 5%

7 Kids 1% 2% 5% 1%

8 Home Products & Services 2% 6% 5% 4%

9 Fitness & Nutrition 6% 7% 4% 3%

10 Sports & Recreation 11% 5% 3% 4%

All Other 16% 17% 20% 20%

2010- 1Q

2010-4Q

2011- 4Q (e)

1 Food & Drink 31% 26% 14%

2 Beauty, Spa & Massage 20% 20% 13%

3 Clothing & Accessories 2% 4% 10%

4 Health, Medical & Dental 3% 5% 9%

5 Travel & Hospitality 2% 2% 9%

6 Photography & Photo Services 2% 4% 7%

7 Kids 1% 2% 5%

8 Home Products & Services 2% 6% 5%

9 Fitness & Nutrition 6% 7% 4%

10 Sports & Recreation 11% 5% 3%

All Other 16% 17% 20%

When looking at the types of daily deals consumers are purchasing,

Food/Drink and Beauty, Spa & Massage accounted for largest share

Offers Published by Category Source: Local Offer Network / Dealradar.com


The average price per deal has been increasing as deal of the day

sites offer higher-value offers to consumers

Excluding

Travel & Medical


Most flash sale sites continue to see growth in unique visitors, with

Totsy.com the fastest growing property

Avg. Monthly UVs (000) on Select Flash Sale Sites in Q2 2012 Source: comScore Media Metrix, U.S.

Y/Y Change

545

590

638

785

903

1,098

1,118

1,137

2,185

2,237

BeyondtheRack.com

EBay Fashion Vault

Ideeli.com

Totsy.com

MyHabit.com

OneKingsLane.com

HauteLook.com

Gilt Groupe

Woot.com

Zulily.com +9%

+74%

+36%

+40%

+60%

+82%

+881%

-20%

+46%

+22%


The percent of e-Commerce transactions with free shipping saw a

seasonal pullback to 42%, down from all-time high of 52% in Q4 2011

39% 40% 41% 49% 47% 43% 40%

52% 49% 42%

61% 60% 59% 51% 53% 57% 60%

48% 51% 58%

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

Q12012

Q22012

% Transactions with Paid Shipping

% Transactions with Free Shipping

Percentage of e-Commerce Transactions with

Free Shipping Source: comScore e-Commerce Measurement

55% of consumers stated in a recent survey* that if they reached the end of an e-Commerce transaction and

free shipping was not offered, they would cancel their purchase at that retailer

*comScore survey – July 2012


Among online shoppers,* 61% would prefer to use in-store pickup

than pay for shipping to their home

Q. When shopping online, are you more likely

to utilize free shipping to your home or

free in store pickup? Source: comScore Survey July 2012

95%

5%

% of respondents

More likely to use free shipping

More likely to use free in store pickup

Q. Similar to the previous question, would

you be more likely to pay for shipping to

your home, or utilize free in store pickup? Source: comScore Survey July 2012

39%

61%

% of respondents

More likely to pay for shipping

More likely to use free in store pickup

* - those who shop online at least once a month


Q60. How much do you agree with the following statements?

If an online retailer offers a lenient, easy-to-understand returns policy, I will …

32%

35%

48%

48%

Focus less on prices and more ontheir quality of service

Drop another retailer with a less easyreturns process

Recommend the retailer to a friend

Shop more often with that retailer

If an online retailer offers a lenient, easy-to-understand returns

policy, I will … Source: comScore Custom Survey

“Return policy has to be

clear, easy and up front.”

“[If] I cannot find the return policy

or it is unclear I will never purchase

or return to that site again”

A lenient and clear returns policy is likely to lead to recommendations

and repeat business from online shoppers

Agreement (Top 2 Box)


37

18 14

10

8

7 6

Average # of Chips Allocated out of 100

Free shipping on most items

Knowing what day my purchase will be delivered

Easy to understand returns process

Availability of express shipping choices

Offers environmentally-responsible products

Ability to select a 2-hour delivery window

Ability to re-route packages to an alternate locationwhile in transit

Factors Influencing Total Purchasing Experience Source: comScore Custom Survey

Free shipping was, by far, the factor considered most influential on the

online shopping experience

Q29. Thinking of factors that would influence your total purchasing

experience with a retailer, how influential is each of the following

factors? Please distribute 100 points across these factors, allocating

more points to factors that are more influential and fewer points to factors

that are less influential.


Join us and UPS for a deeper dive into the online shopping

experience – August 22 at 2 PM ET

www.comscore.com/OnlineShoppingWebinar

The Online Shopping

Customer Experience Study provides insights into consumers’

online shopping behaviors and

preferences.

Other online shopping surveys

have focused on purchase or web

usability, but this particular survey

bridges that gap with a view of

perceptions on customer

experience from pre-purchase

through post-delivery.

This study also provides a clear

picture of which shipping and post-

purchase services enhance

customer experience.


The Digital Endcap: Retailers as Publishers


0

500

1,000

1,500

2,000

2,500

3,000

Amazon.com

Walmart.com

The Digital Endcap: Manufacturer ad impressions delivered on

Amazon.com tripled versus a year ago and remain far ahead of Walmart

Impressions Delivered (in Millions) & Selected Leading Creatives

on Amazon & Walmart Source: comScore Ad Metrix, U.S., Jan-2011 to June-2012

+341% vs. Jun ’11

Amazon.com

Walmart.com

+103% vs. Jun ’11


The Digital Endcap: Reaching consumers at the bottom of the funnel

Standard

Display

Ads

Digital

Endcaps

Average CPM

$2.91

Average CPM

$2.74

Ads on retailer websites reach consumers down-funnel, but sold at below average CPMs.

Shouldn’t they be going for more?

Source: comScore Ad Metrix, U.S.,

Apr-2012 to June-2012


The Digital Endcap: Friend or Foe?

Why aren’t more retailers leveraging

the Digital Endcap?

Friend

Ability to leverage available site

inventory

Delivers competitive advantage due

to synergies created for retailer and

manufacturer (vertical integration)

Inherently high margin offering, with

minimal costs

CPM upside

Foe

Shoppers might click away from the

retailer website

BUT, we know that display ad CTRs are

low and the branding effect is strong

Retailers may not have an ad sales

force to leverage


The Impact of Mobile and Tablets

on Shopping and Buying


+1.1 +1.3 +1.3

+1.9

+3.3

+2.7

+1.3 +1.3

+1.0

+2.1 +2.3 +2.3

+2.9

+2.0

+0.7

+1.8

+2.7

+3.6

+2.9

+2.1 +2.2

+1.6

+3.8

+2.2

+3.1

+2.5

+1.4

+6.5

+3.5 +3.3

+2.1

+0.7

+2.6

+0.9

+0.0

+1.0

+2.0

+3.0

+4.0

+5.0

+6.0

+7.0

0

20,000

40,000

60,000

80,000

100,000

120,000

New Smartphone Acquisitions (In Millions)

Total Smartphone Subscriber Base (In Thousands)

More than 4 million new smartphone subscribers activated in Q2,

taking the audience over the 110 million mark

Acquisition Trend for Smartphone Subscriber Base and

Total Smartphone Subscriber Base Source: comScore MobiLens, U.S., 3 Mo. Avg. Sep-2009 to Jun-2012


Nearly 1 in 10 e-Commerce dollars are spent via mobile device

9% 8%

9% 8%

6% 6%

3% 3%

2%

Q22012

Q12012

Q42011

Q32011

Q22011

Q12011

Q42010

Q32010

Q22010

Percentage of Total e-Commerce Dollars Spent via Mobile or Tablet Device Source: comScore Mobile Measurements

Spike in percentage of

e-commerce sales via

mobile coincides with

surge in tablet ownership


Nearly 2 in 5 tablet owners have purchased something online via their

device in the past month, more than double smartphone owners

18% Smartphone owners

Smartphone Owners Who Purchased

Item/services via Mobile (past month) Source: comScore MobiLens

39% Tablet owners

Tablet Owners Who Purchased

Item/services via Tablet (past month) Source: comScore TabLens

Tablet owners are generally more engaged overall – in addition to the above ‘purchased’

metric, 43% have researched items and 42% have compared product prices in the past

month (compared to 21% and 22% for smartphones, respectively)


When compared to overall tablet owners, iPad owners significantly

over index on every e-Commerce metric, including purchasing items

Metric (took action in past month) All tablet

owners

iPad

Index

Kindle Fire

Index

Found store location 42% 122 85

Purchased goods or services online 39% 117 99

Made shopping lists 23% 115 106

Found coupons or deals 35% 115 96

Checked product availability 32% 113 93

Compared product prices 42% 113 92

Researched product features 42% 113 92

Retail/e-Commerce Actions Taken by iPad and Kindle Fire Owners

(Indexed Against All Tablet Owners) Source: comScore TabLens


Social Commerce Trends


0

5,000

10,000

15,000

20,000

25,000

Pinterest.com

Instagram.com

Pinterest & Instagr.am: U.S. Unique Visitor (000) Trend Source: comScore Media Metrix, May 2011 – July 2012

+22x Y/Y

+5x Y/Y

Pinterest & Instagram among the two hottest growth sites over past year


Social networkers tend to be heavier online buyers, but Pinterest has

significantly higher propensity than average

111

130

226

106 109

163

50

100

150

200

250

Facebook Twitter Linkedin Myspace Tumblr Pinterest

Buying Power Index (BPI)* for Selected Leading Social Networking Sites

Source: comScore Media Metrix, U.S., June 2012

*Buying Power Index = Average Spending per Buyer for Site / Average Spending per Buyer for Total Internet x 100;

Index of 100 represents average spending behavior


Pinterest users love, love, love shopping, making it a gold

mine for marketers wanting to reach buyers

22.8%

21.2%

20.1%

19.7%

19.0%

18.8%

18.7%

18.6%

18.3%

18.0%

17.8%

17.8%

17.7%

17.4%

17.2%

17.2%

16.8%

16.7%

16.6%

16.6%

Retail - Jewelry/Luxury Goods/Accessories

Retail - Flowers/Gifts/Greetings

Retail - Fragrances/Cosmetics

Retail - Food

e-cards

Gay/Lesbian

Retail - Books

Travel - Transactions

Lifestyles - Green

Retail - Coupons

Retail - Apparel

Retail - Consumer Goods

Retail - Health Care

Retail - Home Furnishings

Retail - Toys

Incentives

Retail - Mall

Religion/Spirituality

Travel - Hotels/Resorts

Shipping

Top 20 Site Categories with Highest Concentration (%) of Pinterest Visitors Source: comScore Media Metrix, U.S., June 2012

16 of top 20 Pinterest users’ highest affinity categories are Retail-related

Overall Pinterest

Internet

penetration: 10%


Pinterest is carving out a big share of social media referral traffic to

retail apparel category

54% 30%

8%

4% 4% Facebook

Pinterest

Tumblr

Twitter

Other

% of Social Networking Referral Visits to Retail Apparel Category Source: comScore Custom Metrix, U.S., May 2012


Quantifying the Effect of the Social Web


Power of Like 2: Key Findings

Amplification: Brands can meaningfully

extend Facebook reach through amplification

to Friends of Fans and help drive sales

Earned Media Lift: The causal effects of

Facebook earned media (non-paid) exposure

can be isolated, and show lifts in purchase

behavior

Paid Media Lift: Facebook paid

advertising also shows evidence of driving

lifts in purchase behavior

Download full white paper at:

www.comscore.com/like2

http://www.comscore.com/like2


comScore Social Essentials™ complements and extends Facebook

Insights’ functionality

Reach &

Frequency for

Your Own Brand

SOCIAL ESSENTIALS™ PAGE INSIGHTS

Competitive

Audience Insights

& Social Lift for

All Brands


Get Fans

Brand

Messages

Reach Fans

in News Feed

Fans “Talk

About”

News Feed

Content

News Feed

Content

Spreads to

Friends

Goal: Max

Reach,

ROI

2. Engagement 3. Amplification 1. Fan Reach

Many brands don’t consider

these intermediary steps

How Social Marketing Works: Brands control the three basic levers

that will determine social media marketing success


Quantifying Amplification: Top Facebook Brands tend to reach 0.5-2.0

Friends for every Fan reached w/ earned media

-

0.5

1.0

1.5

2.0

2.5

0

10

20

30

40

50

60

70

Am

pli

fica

tio

n R

ati

o

Ex

po

se

d S

ocia

l Im

pre

ss

ion

s (

MM

)

Fans & Friends of Fans' Earned Impressions and Amplification Ratios for Selected Leading Facebook Brands

Source: comScore Social Essentials, U.S., March 2012

Exposed Fan Impressions Exposed Friend of Fan Impressions Amplification Ratio


Earned Media Lift: Starbucks earned media impressions drove

significant lifts in in-store purchase in 4 weeks following exposure

0.17

0.36

0.50 0.58 0.83%

1.36%

1.80%

2.12%

0.66%

1.00%

1.30%

1.54%

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

0.00%

0.40%

0.80%

1.20%

1.60%

2.00%

2.40%

Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4

No

min

al L

ift

in P

urc

ha

se

In

cid

en

ce

% R

ea

ch

of

Ex

po

se

d a

nd

Co

ntr

ol

Gro

up

s

Starbucks Fans & Friends of Fans In-Store Purchase Behavior: % of Exposed Group vs. Control Group Purchasing Starbucks

Weeks 1-4 Following Earned Media Exposure Source: comScore Social Lift, U.S., February-March 2012

Nominal Lift Test Group Control Group

+38%


Paid Media Lift: Also evidence that Facebook paid ad campaigns can

drive positive lifts in purchase behavior

0.19%

0.38%

0.49% 0.61%

0.11% 0.20%

0.32%

0.39%

0.46%

0.84%

1.18%

1.47%

0.37%

0.69%

1.00%

1.27%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

Week 1 Weeks 1-2 Weeks 1-3 Weeks 1-4

Online - Test Online - Control In-Store - Test In-Store - Control

Retailer Premium Facebook Ad Lift: % of Exposed Group

Purchasing Online and In-Store Weeks 1 - 4 Following Paid Media Exposure Source: comScore AdEffx Action Lift, U.S., September-December 2011

+16%

+56%


Five Ways to Achieve Social Marketing Success

Move beyond just collecting Fans Use them as a leverage point to achieve marketing objectives

Reach Fans effectively Use newsfeed to get them to engage and amplify your messages

Know who you’re reaching & how often Tie these metrics back to your broader marketing strategies

Quantify value of earned media Compare earned to paid ads & put a $ value on exposures; measure ‘social lift’

Cultivate the ‘virtuous cycle’ of Paid, Earned & Owned Media are intertwined and combine to help brands

maximize impact


Key Takeaways


Key Takeaways

The channel shift to online appears to be accelerating: online sales

increased by +15% this quarter, while on a comparable category basis, offline

sales increased only 2%

Mobile and tablets accounted for 9% of all retail e-Commerce sales in Q2

All product categories showed strong (10% or higher) growth in Q2

Overall consumer sentiment weakened this quarter, with 56% of respondents

viewing the economy as poor (versus 49% in Q1 2012). Unemployment

increased in importance as a concern

Leading deal-of-the-day sites are now seeing more visitors from mobile devices

than from the fixed Internet and the value of offers has increased dramatically

The rise of the visual web is the key social media trend this year and promises

to be important for marketers and retailers

Facebook and Pinterest are both important social media channels for

influencing commerce but Linkedin attracts the heaviest online buyers


QUESTIONS?

Please contact us at [email protected] if

you have any additional questions or comments.

Thank You!

Note: A copy of this presentation will be sent to all attendees within

two business days of today’s webinar.

state of the retail q2 2012

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