3 Lines >

2 Lines >

DATE

PLACEMEN

T

1 Lines >

Retail happens everywhere: The Omnichannel Playbook

Elena Alvarez Head of Marketing Solutions

Facebook Spain

O U R M I S S I O N A T F A C E B O O K

4

To give people the power to share and make the world more open and

connected

5

This presents an opportunity to evolve marketing.

Not just mobile-first, but people-based

Meaningful connections for people

translate into measurable value for

business

6

7

3 key trends reshaping retail

No.

8

1

eCommerce continues to disrupt retail, but they will co-exist

Source: GVS Analysis, August 2016 9

eCommerce growth continues to outperform overall Retail Global eCommerce will reach ~12% of total Retail, and is expected to grow 22% YoY this year

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2012 2013 2014 2015 2016 2017 2018 2019 2020

eCommerce

Retail

YoY

Source: GVS Analysis, August 2016 10

Time for a paradigm shift “Digitally influenced” retail may already account for more than 60% of total sales

5-10%

30-60%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015 2016 2017 2018 2019 2020

eCommerce

Digitally Enabled

Commerce

% of total

Commerce

Source: Forrester, March 2015 11

% of total Retail Sales

Traditional View of eCommerce

France; 14%

Germany; 14%

Italy; 6%

Spain; 7%

UK; 22%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015 (F) 2016 (F) 2017 (F) 2018 (F) 2019 (F) 2020 (F)

France Germany Italy Spain UK

Source: Forrester, March 2015 12

% of total Retail Sales

Online + Web-influenced Sales

France; 53% Germany; 55%

Italy; 44% Spain; 46%

UK; 59%

0%

10%

20%

30%

40%

50%

60%

70%

2012 2013 2014 2015 (F) 2016 (F) 2017 (F) 2018 (F) 2019 (F) 2020 (F)

France Germany Italy Spain UK

13

90% of retail sales happen offline

Still, a majority of Sales happen offline - over

Source: 1) US Census, Quarterly Retail eCommerce Sales, May 2016 Note: Data includes retail, auto and CPG. It does not contain

food, travel or finance industries

No.

14

2

We've entered the era of “mobile-first commerce”

Source: eMarketer, April 2016. 15

Mobile and smartphone users, Spain, 2014–2018

Mobile and smartphone users continue to grow

39,1 39,6 40,0 40,4 40,8

22,0

26,0

28,8

31,4 33,3

2014 2015 2016 2017 2018

Mill

ion

s

Mobile phone users Smartphone users

Strong growth in mobile app usage Apps drive a majority of digital engagement at 54%. Total mobile time is at 62%

Source: Facebook internal data, US only, Oct 1, 2014–Aug 31, 2015. Analysis of conversion pixel and App Events data for ads that were shown to people ages 18+ on Facebook

and that led to purchases between $5–$500. Gaming ads were not tracked.

17

Millennials driving this trend 83% of US millennials research products on mobile and 69% of them buy on mobile (FBIQ study)

• Researching on mobile

• Buying on mobile

• Downloading retail apps

• Prefer app shopping

83%

69% 61% 44%

4:34 4:11 3:58

2:13 1:51 1:44

0:46 0:30 0:27

2:48

2:35 2:38

0:46 2:54 3:18

2011 2015 2017

Mobile

Desktop/laptop/Other

Print

Radio/Other

TV

Source: eMarketer, Oct 2015

Mobile will be the #1 channel Time spent per day with major media 2011 – 2017 US millennials research products on

Predicted average time spent in the US per day, 20161

6

3

0

Hou

rs

P R I N T T V D I G I T A L

People’s time and attention are on mobile

19

per day on mobile

3H 2x attention on

mobile compared to

TV2

Source: 1) “Average Time Spent per Day with Major Media by US Adults,” eMarketer Oct 2015, comScore, The U.S. Mobile App Report, Sept 2015; 2016

has been fully forecasted on October 2015; 2) Yume commissioned Nielsen Study, “When Screens Collide, Viewer Behavior in Multi-screen, February

2015.

90%

of people access

mobile while

shopping in store1

57%

of people access

mobile while they

watch TV2

20

Billions of opportunities – literally

Mobile’s creating new moments to reach people

Mobile creates

30B moments to reach

your target

audience every

day.3

Source: 1) SessionM, “Smartphones & Consumer Decision-Making: A Retail Study,” Aug 2015; 2) Accenture, “Digital video and the connected consumer,”2015; 3) Forrester Blog, 2016 Predictions: Key Trends Will Transform Mobile

Engagement, US Nov 2015. 30 billion moments is a calculated number based on US consumers picking up their phone approximately 150-200 times per day.

21

Mobile share of eCommerce transactions

Globally, Mobile Commerce is Over 1/3 of Online Sales

34%

Global

average

Source: Criteo

No.

22

3 Marketplaces continue to be the fastest growing Retail format

Source: GVS Analysis August 2016 of Wal-Mart, Amazon, Alibaba Earnings Reports

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1997 2000 2003 2006 2009 2012 2015

GMV

Pure play challenging traditional Retail Alibaba, Amazon & eBay together control over 35% of Global eCommerce

R U L E O F

S T O R E S

B I R T H O F

E -

C O M M E R C E

O M N I -

C H A N N E L

M O B I L E -

F I R S T

C O M M E R C E

I M M E R S I V E

C O M M E R C E

?

24

We are

here

25

You have a unique retail business with unique challenges

26

Conversions happen everywhere

Y O U R

C O N S U M E R

Source: comScore/PayPal “Reaching the Connected Consumer” Custom Surveys, Oct 2013

>67% of shopping starts

on one device and

ends on another

27

Multi-Channel

Multiple retail channel specific challenges exist

DISCOVERY ACQUISITION CONVERSION

• Brand & Store awareness

• Agnostic management of traffic across online & offline

• Building a holistic view of the customer

• Building a mobile-first experience

• Manage CLV difficult across channels

• Develop shopper marketing to leverage Brand/Retailer relationship

• Combine non-digital & digital campaigns

• Retargeting

• Driving loyalty & retention

28

Engage with your customers & drive results at every stage of the consumer journey

L O YA LT Y

Awareness Acquisition Transaction Demand generation

29

Developing

Business On &

Offline with

Facebook

Newsfeed is an endless aisle for mobile discovery Fast, immersive and native experiences built for mobile

6% of time spent

on mobile

Source: US Mobile Total Monthly Minutes, comScore, Dec 2014

Source: US ComScore data, Media Metrix June 2015 31

People spend their time across the Facebook Family

of all time spent on mobile

>20%

Our Facebook community

1.71 BILLION people on Facebook

each month

1 BILLION* people on WhatsApp

each month

1 BILLION people on Groups

each month

1 BILLION people on Messenger

each month

500

MILLION people on Instagram

each month

1.13

BILLION People on Facebook every

day

25 MILLION people connected via

internet.org

60 MILLION small businesses

using Pages

or 73% of monthly active people return every day

people access Facebook

every month

＞22M ＞16M

33

Facebook in Spain

Source: Based on Facebook data, June 2016.

34

Reach your audience at the centre of discovery

Source: Based on Facebook data, June 2016.

people access Facebook daily on mobile

people access Facebook

monthly on mobile

＞20M ＞15M

Source: Based on Facebook data, June 2016. 35

8M monthly actives

Instagram in Spain

Solutions across the Facebook family

Awareness Demand generation

Acquisition (Lead generation)

Acquisition (Mobile app installs)

Transaction

36

37

Driving results

Show me what is relevant to me

If you don’t know – ask

Remember me

Use it wherever and whenever

Berlin

Relevance in key 1

What? Topshop now also available in Hamburg! What? Topshop now also available in Kiel! What? Topshop now also available in Buxtehude!

Geotargeting with localized headlines and videos

Screen retail estate is shrinking

2

Source: Placeholder text. Delete this box if source is not needed. 41

T H O U G H T- S TA R T E R S F O R C R E AT I V E

T E S T I N G :

• Lifestyle vs. Product images

• Neutral background vs. Contextualized product shot

• Focus on fewer products vs. Collage

• Bright pops of color

• Thematic images (e.g., a color collection)

• Seasonally relevant creative

Create “thumb-stopping” content

Expect More

Photography and video that showcase everyday target

products, captured in an artfully designed and

unexpected way.

@target

Unleash the creative spirit

Images in which Converse are the canvas and

channel through which creativity is unleashed. This

includes shoes customized by creative icons as well

as images of the creative lifestyle the brand

represents.

@converse

Brightly colored images of product, inspiration, and

lifestyle that evoke the Tory Burch world. The vibrant

color palette runs throughout all of the images.

Live Life Colorfully

@toryburch

TEXT

PHOTOS

VIDEOS

VR / AR

“Wow, Italy

is

beautiful!”

50

Cinemagraphs

Disclaimer: Misusing alcohol can damage your health, to be consumed in moderation 51

Frame your creative

Jameson_us

89,356 likes

jameson_us Celebrate St. Patrick’s Day the right

way. Who will you be celebratiing with?

#LongLiveTheShot

52

Visual storytelling

53

Sees ad for headphones

on mobile

Browses for new

headphones on laptop

Adds product to shopping

cart on tablet

Purchases

headphones

in store

The consumer journey is fragmented across devices and channels – People based marketing in the new normal

Purchases

headphone

s

on desktop

Purchases

headphon

es

on mobile

Online

conversions

only tell part

of the story

3

Source: “Omni-channel Shoppers” by GfK, US only (Facebook-commissioned online study of 2,407 people ages 18+ who have bought 1 of 5 key categories in last 3 months), Sep 2015. 54

45% of all shopping journeys

contain mobile

55

Cookies are no longer a good proxy for people

74% Of people have

more than 1 cookie

15% Of people have

10 or more cookies

Source: “Atlas Insight Series: How often do multiple cookies represent one person,” March 2014

Thank you

Source: Placeholder text. Delete this box if source is not needed.

57