SMWNYC 2017 - L2 - Leveraging Social Platforms Along the Entire Customer Journey

LEVERAGING SOCIAL PLATFORMS ALONG THE ENTIRE CUSTOMER JOURNEY

BENCHMARKING DIGITAL PERFORMANCE

BENCHMARKING

EDUCATION

RESEARCH

MEMBERS

INTRODUCTION SOCIAL PLATFORMS 2017

L2 Intelligence Report: Social Platforms 2016

STUDY OVERVIEW

Fourth Annual L2 Intelligence Report: Social Platforms 2016

Released in January 2017

Report audits 427 brands across Activewear, Auto, Beauty & Hair Care, Beverages, Consumer Electronics, CPG, Fashion, Retail and Watches & Jewelry

CHINA LOCALIZATION

KEY TRENDS SOCIAL FUNNEL

12–17 18–24 25–34 35–49 50–64 65+

-14% -8% -6%

-1%

1% 1%

-36% -38%

-26%

-12%

-2%

5%

% Change Year-Over-Year % Change Over 5 Years Q2 2016 Percentage Change in Weekly Time Spent in Hours (Includes All Live & DVR/Time-Shifted TV) Traditional TV Viewing Trends, by Age Group

VIEWERSHIP IS DOWN…

Source: “The State of Traditional TV: Q2 2016 Update,” Marketing Charts, October 5, 2016

April 1, 2015–March 31, 2016 YouTube Influencer Channel YOY Growth in Subscribers, by Top Beauty Influencer*

WHILE YOUTUBERS THRIVE

Source: L2 Intelligence Report: Video 2016, June 2016 *Top Vloggers Identified Via Pixability

34%

27% 22%

18%

12%

Zoella StilaBabe09 missglamorazzi Bethany Mota Michelle Phan 10.4M Subscribers 4.2M Subscribers 4.0M Subscribers 10.0M Subscribers 8.5M Subscribers

0%

10%

20%

30%

40%

50%

2014 2015 2016 2017 2018 2019 2020

TV Digital Print Radio 2014–2020E US Total Media Ad Spending Share, by Media

ROB PETER TO PAY PAUL…

Source: eMarketer, March 2016

43% 42%

13%6%

3%

-5%Video Social Media Search Display TV

Print

2014–2015, in Billions YOY Change in Media Ad Spending Worldwide

SOCIAL / MOBILE FUELS DIGITAL…

Source: eMarketer, 2015

BRANDS DRIVE, CONSUMERS BLOCK …

BRANDS CONSUMERS

1 in 4 US adults currently block ads — 1 in 3 will do so by 2017

!

Viewability Verified by ComScore & Nielsen

6-Second Unskippable Ads

E-Commerce Ads

Video Carousel Ads

Google Preferred Breakout Ads

Dynamic Ads (Retargeting)

!!

Business Profiles

Video Ads Purchased via API

Advertising API

Ads Within Stories

Emoji Targeting

Video Ads Tested on Facebook Live

Ad Preference Choices & Disabled Ad Blocking

Video Ads

Advertising

Buy Button in Messenger Bots

CTA on Ads to Messenger Bots

Retargeting

2016 Social Advertising Product Launches

NOT A NEW STORY 20

16

Conversational Ads

6-Second Video Ads

First-View Video Ads

Canvas Ads

Pre-Roll Video Ads on Instant Articles

Sponsored Discover Channels

BEGINNING TO MATURE

“Facebook CFO David Wehner said ad growth would likely slow ‘meaningfully’ due to limits on ‘ad load,’ or the number of ads that Facebook can put in front of customers without alienating them.”

12,016 11,359 9,731

Q1 2016* Q2 2016 Q3 2016

n=427 Brands, n=16K Promoted Posts, 81K Organic Posts Global & US Accounts, February–September 2016 Share of Promoted Posts & Average Interactions per Promoted Post

FACEBOOK AD FATIGUE?

Source: L2 Analysis of Unmetric Data. *Note: Q1 2016 includes only February & March **Note: Data does not include dark posts.

16% 16% 17%

Q1 2016* Q2 2016 Q3 2016

Share of Posts That Are Promoted Average Interactions per Promoted Post

While the percentage of promoted posts has remained constant, viewer engagement with these sponsored posts has consistently decreased

February 2016 vs. October 2016, n=427 Brands Global & US Accounts Percentage of Promoted* Facebook Posts, by Vertical

CPG & LUXURY RAMP SPEND

Source: L2 Analysis of Unmetric Data. *Note: Excludes dark posts.

26% 23%

12% 14% 11% 11% 16% 19%

13%

45%

32%

21% 20% 15% 14% 18% 15%

7%

Beverages n=48

CPG n=52

Fashion n=56

Watches & Jewelry

n=49

Activewear n=28

Auto n=21

Retail n=72

Consumer Electronics

n=27

Beauty n=74

February 2016 October 2016

+19% +9% +2% +6% -4% -6% +9% +4% +3%

DIVERGENT STRATEGIES

CPG LUXURY

Q4 2015–Q3 2016, n=419 Brands Global & US Accounts Share of Total Interactions, by Platform

CLEAR ENGAGEMENT WINNER?

Source: L2 Intelligence Report: Social Platforms 2017.

39% 49% 42% 42%

4% 4%

3% 3% 0%

1% 1% 0%

57% 46% 54% 55%

Q4 2015 Q1 2016 Q2 2016 Q3 2016

Instagram Facebook Twitter YouTube

Platform Interactions Likes + Comments

+ Shares

Likes + Comments

Favorites + Retweets

Views

Global & US Accounts, Q3 2015–Q3 2016, n=395 Brands Instagram Post Frequency vs. Total Interactions, by Brand

WHY? ALGORITHM IMPACT

Source: L2 Analysis of Unmetric Data.

July–September 2015 July–September 2016

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0 10 20 30 40 50 60 70 80

Tota

l Int

erac

tions

Per

Th

ousa

nd F

ollo

wer

s

Posts Per Week

Q3 2015

Q3 2016

January 2016 vs. September 2016, n=289 Brands Percentage of Brands With Snapchat Account, by Vertical

BRANDS FLOCK TO SNAPCHAT


71%

52% 56%

45%

25% 33%

25% 38%

13%

90% 78% 78%

66% 63%

48% 46% 46%

27%

Activewear n=21

Beauty n=46

Fashion n=36

Retail n=58

Watches & Jewelry

n=24

Beverages n=40

Auto n=28


n=13

Travel n=15

January 2016 September 2016

Average: 64%

Nike: Most Viewed Snapchat Snap vs. First Instagram Story

SCALE?

Source: “Nike and Others Dive into Instagram Stories: Why Marketers Already Like it Better than Snapchat,” AdAge, August 2016.

Most Viewed Snap First 24 Hours

66K!Views!

800K!Views!

January 2016 vs. October 2016 Total Index Brands & Advertisements Present on Snapchat Discover

OPENING THE AD FLOODGATES


161

387

Total Advertisements

23

63

Total Advertisers

January 2016 October 2016

+175% +140%

February–October 2016, n=22K Facebook Posts Facebook Live Videos as a Percentage of Total Facebook Videos

2017: THE YEAR OF FACEBOOK LIVE?


0.26% 0.24%

0.82%

0.48%

1.15% 1.40%

1.09%

2.03% 1.86%

February March April May June July August September October

February–October 2016, n=228 Facebook Live Videos, n=84 Brands Share of Facebook Live Videos, by Vertical

BEAUTY & AUTO DOMINATE

Source: L2 Intelligence Report: Social Platforms 2017. *Source: L2 Analysis of Unmetric Data

Promoted* Fashion Show

1.5M Views

Organic* Car Test Drive

681K Views

Promoted* New Product Reveal

110K Views

Organic* Influencer Takeover

10K Views

BEAUTY: 21% AUTO: 21% RETAIL: 12% LUXURY: 7%

SOCIAL PURCHASE FUNNEL KEY PLATFORMS BEST-IN-CLASS

AWARENESS Glossier Charlotte Tilbury American Eagle

ENGAGEMENT Balmain Adidas NEO Victoria’s Secret

CONVERSION U By Kotex Absolut Vodka

RETENTION Sephora Lululemon

ADVOCACY DevaCurl Four Seasons

AWARENESS VEHICLE

Source: “The Future of Social,” Simply Measured, Firebrand Group, & Social Fresh, August 2016.

AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY

76% of social media marketers cite awareness as a top social media goal

American Eagle: Mobile-First #WeAllCan Campaign

AEO: BRAND REPOSITIONING


Target Audience American Millennials

Campaign Assets Mobile-First Advertisements Millennial Influencers

Platforms Facebook Canvas Ads Snapchat Ads


278K Views

ENGAGING EXISTING COMMUNITIES



34% of social media marketers cite customer loyalty as a top social media goal

Instagram Engagement Snapchat Engagement

Red Bull: Widely Spread Content and Weekly SnapTV Series

RED BULL: ENGAGING CONTENT

Source: L2 Analysis of Unmetric Data.


RedBull engages its Snapchat followers with its weekly SnapTV seriesand interactive snaps.

Red Bull gained 63 million video views by republishing engaging video content across its Instagram accounts

Can social commerce work?


[CATEGORY NAME][PERCENTA[CATE

GORY NAME][PERCENTA

August 2016, n=3,800 2016

US Mobile Buyers Who Discover Share of US Online Orders New Products on Social Media Attributed to Social Media

S-INFLUENCE, NOT S-COMMERCE AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY

Source: “A Global Perspective of Mobile Commerce,” IAB, Sept. 27, 2016; Custora, 2016.

Absolut Vodka: Drive-to-Store / Offer Code Messenger Ad

MESSAGING POTENTIAL


Sponsored posts drive to Messenger where consumer is geo-located and receives personalized redeemable code


RETENTION LEVER



17% of social media marketers cite customer service as a top social media goal

November 2016, n=425 Brands US & Global Accounts Facebook Messenger Adoption, by Vertical

LIMITED MESSAGING INNOVATION


94% 90% 86% 84% 84% 81% 68% 67% 64%

17% 28%

20% 33% 39% 42%

21%

50%

20%

0% 6% 0% 2% 0% 4% 4% 0% 0%

CPG n=51

Beverages n=48

Auto n=21

Watches & Jewelry

n=49

Beauty n=73

Retail n=72

Fashion n=56


n=27

Activewear n=28

Facebook Messenger Indicated Response Time Within 1 Hour Messenger Bot


Sephora, The Macallan, and Bud Light: Facebook Messenger Bots

HIGH TOUCH SERVICE



Product Recommendations Product Replenishment In-Store Appointments

Q1 2016 vs. Q3 2016, n=259 Brands Using Twitter for Customer Service Average Monthly Customers To Whom Brands Have Replied, by Vertical

TWITTER SERVICE DECLINES


366 350

217

148 143 123 101 101 64

309 305

147 135 132 101 97 77 64


Retail Activewear Beverages Auto Watches & Jewelry

Beauty CPG Fashion

Q1 2016 Q3 2016

-15% -13% -32% -9% -8% -18% -4% -24% +0%


Advocacy


WHAT’S MISSING?

Four Seasons: Instagram Advocacy Strategy

NOT JUST IN BEAUTY



Four Seasons

13% Shangri-La

12%

Ritz-Carlton 10%

The Luxury Collection

9% Dorchester Collection

6%

Hilton 5%

Vivanta by Taj 5%

Other 40%

Share of Total Luxury Hotel Instagram Interactions, by Brand

Q3 2016

Inciting consumer content creation on Instagram and site

UGC accounts for 69% of Four Seasons Instagram content

CONCLUSIONS SOCIAL PLATFORMS 2017

CONCLUSIONS

Social Drives Digital. Brands are aggressively shifting spend to social platforms even as they wrestle with issues around scale , ROAS, and ad fatigue.

No Rest for the Wicked. With no end in sight to the volatility of social platform advertising options, leader brands will be those that constantly iterate on their social platforms strategy.

Moving Beyond Awareness. Leader brands are seeking to deploy social assets across the purchase funnel from awareness all the way to post-purchase.

QUESTIONS? [email protected]

March April May

Digital IQ Index®:

ACTIVEWEAR Digital IQ Index®:

BEAUTY FRANCE Digital IQ Index®:

CHINA LUXURY

Digital IQ Index®:

BEAUTY UK Digital IQ Index®:

PAN-LUXURY Insight Report:

RETAIL

Digital IQ Index®:

AUTO Digital IQ Index®:

CPG UK Digital IQ Index®:

CPG

Intelligence Report:

LOCALIZATION Intelligence Report:

CONTENT & COMMERCE

Insight Report:

AUTO SHOW EARNED MEDIA

UPCOMING RESEARCH

UPCOMING EVENTS WATCHES & JEWELRY New York March 9

LOCALIZATION New York March 16

AMAZON New York April 13

DIGITAL LEADERSHIP ACAEDMY New York July 19/20