Impact on Online Commerce on Global Business

1. Impact on Online Commerce on Global Business Kevin Hourigan

2. The Digital Revolution • How fast is it growing? • What are the fastest growing areas? • What has this meant to online commerce? • How are you as Educators affected by this • Questions and Answers

3. To Reach 50 Million users, it took • Radio – 38 years • Terrestrial TV – 13 years • The Internet – 4 years • iPod – 3 years • Facebook – 100mm users < 9 Months

4. Facebook • Facts • 750 + Photographs are uploaded to Facebook • Every SECOND

5. YouTube • Facts • In a 2 month period of time, there are more video uploads to YouTube than was shown on CBS, ABC and NBC combined over the last: • 50 years

6. Who am I • Kevin Hourigan, CEO of Bayshore Solutions • 15 Year Old Interactive Agency over 1,800 clients served in: • Search & Social Media Marketing • Web Design & Development • Overall Internet Strategy & Execution • Recognized 8 Years in a Row as a • Top 100 US Interactive Agency • by Advertising Age Magazine

7. What has changed in Global Commerce? • The consumer • We no longer want to be spoken to, we want to converse with brands who: • Understand Us • Who communicate with us where, when and how we like to communicate

8. Does this seem familiar today?

9. YouTube • Demographics • 109M Users • 58% 18-49 years of age or older • 50% Male • Marketing Touch Points • Video • Channels • Groups • Sponsored Videos • Google Ad Network *(Quantcast Oct 2010) Offshore Sailing Schools Branded YouTube Channel Page

10. YouTube Global Commerce Example • BlendTec

11. YouTube Global Commerce Example • In Sept 2009: • 790 K views on You Tube in 3 days* • BlendTec’s YouTube Channel has over 7 Million views and • Over 150K subscribers • Bottom-Line Results: • The “Will it Blend” campaign drove retail sales increase of over 700% • *Computerworld.com

12. Web Usage Stats • Worldwide access to the Internet has doubled within the past five years and is expected to surpass 2 billion by the end of 2010 - Source: http://localtechwire.com/business/local_tech_wire/news/blogpost/8486175/

13. Internet Usage • Internet Explorer 49.87% • Mozilla Firefox 29.95% • Google Chrome 11.40% • Safari 5.50%

14. Facebook • Demographics • 500M Active Users (Facebook April 2009) • 64% between13-35 years of age (Quantcast September 2009) • 55% Female (Quantcast June 2009) • Over 55 & Up are the fastest growing demographic (922%) (istrategylabs Jan 2010) • Marketing Touch Points • Facebook Advertising • Profile • Friends • Fan/Group Page World’s Leading Cruise Lines Branded Facebook Page

15. Average American Spent 7 hours on Facebook in January Nielson Company

16. 44% of Social Sharing on the Web is Driven by Facebook TechCrunch

17. Facebook Yanks Number 2 Spot From Yahoo Compete.Com Report

18. Facebook Global eCommerce Impact • Facebook Fans are significantly more likely to buy products and services or recommend the brand to a friend • Consumers are 51% more likely to buy from a brand they follow on Facebook • They’re 60% more likely to recommend their Facebook Friends to follows a brand they do on Facebook

19. Facebook for Advertising • Facebook Advertising has been known as one of the “Best Bang for the Buck” by many markers. Why? • 5MM Users to advertise to • VERY Defined demographics to place your adds to • ONLY PAY FOR CLICKS • Much lower cost “Pay Per Click” than the Search Engines

20. Twitter • Demographics • 55M unique visitors per month * • 69% 18-49 years of age or older * • 55% Female * • Marketing Touch Points • Updates • Followers • Replies • Revenue – Promoted/Sponsored *(Quantcast Oct. 2010) Offshore Sailing Schools Branded Twitter Page

21. One in Five People Use Twitter • Nearly one in five (19%) online Americans now uses Twitter • or a similar service to post and share updates about themselves, or to see updates about others, according to the latest survey data from the Pew Internet & American Life Project.

22. Twitter Global eCommerce Impact • Consumers are 67% more likely to buy from the brands they follow on Twitter • They’re 79% more likely to recommend their Twitter follows to a friend • BOTTOM LINE - Social media is a competitive advantage for those that are participating, and a major weakness for those that aren’t

23. LinkedIn • Demographics • 66M Users • 50% are Business Decision makers(@plan Summer 2009) • 20M Visitors Per Month in US* • 52% Male* • 71% are 35 years or older* *(Quantcast Oct. 2010) • Marketing Touch Points • Profile • Connections • Groups Kevin Hourigan’s Linked In Profile Page

24. Blogging and eCommerce • Today’s replacement for Consumer Reports • Consumers write about their experiences with products and services • Those blogs are easy to read • They not only contain their opinion, but also: • Where they bought it • The price they paid • The service the retailer provided • CONSUMER REPORTS NEVER DID THIS!

25. Review Sites and eCommerce

26. Smart/Mobile Phone Adoption • 273 Million mobile subscribers in U.S.1 • Exceeds 240 Million Internet users • 89% of employed people have mobile device2 • 60% carry mobile device at all times, even inside home3 • 17.5% of Households are wireless only4 1 – CTIA 2 – Pew Internet & American Life Project, 2008 3 – Knowledge Networks, 2008 “How People Use Cell Phones” 4 – US Centers for Disease Control and Prevention 2009

27. Mobile Generation • Born 1981 - 1994 • 90%+ Text Messaging Rate1 • Do not call or email • 75 Million Consumers in U.S. • Second largest to Boomer market of 80 million • US Retail Example • 25% of cars in 20101 • 40% of the car market in ten years2 1 – CTIA 2 – Bayer Consulting/Deloitte LLP Jan 2009

28. Mobile Marketing

29. Calls vs. Text Messaging

30. Text vs. Phone • 163 Millions text users in U.S. • Exceeds 140 Million regular email users • Volume of text messages exceeds voice calls • Reasons mobile user prefer text to voice/email • Unintrusive • More welcome than voice interruption • Easier to manage than voicemail • Instant receipt of message • Ability to respond quickly

31. Text Advantages vs. eMail - Phone

32. Click to Connect Web Page Chat Engagement Buttons

33. Connected Engagement Buyers Interface Video, audio and text chat interaction Customizable opening content

34. Online Chat • Goal of Online Chat is to ENGAGE, INTERACT & SELL • Text Chat • Live Operator Phone Opportunity • Live Video Chat for “face to face” engagement and interaction • CRM Integration for lead collection and tracking • Flash/Streaming Video • Appointment Setting

35. Facebook Responds to Privacy Issues

36. St. Pete Times 10/20/2010

37. How does this affect Educators • Who is your target audience • Students • Other Faculty • Prospective Students • Prospective Student Parents • Guidance Counselors 37

38. How does this affect Educators • Who is your target audience • Students • Attention Span might be less? • Research is easy with an abundance of content • Not all easily found content is good content • Plagiarism becomes a whole new risk 38

39. How does this affect Educators • Teens and young adults tend to • scan texts when they “read” on-line • work in small chunks of time • read small chunks of texts • respond positively to visuals Jakob Nielsen’s research on tracking eye movements1 39

40. So, Maybe Educators should sign up for Social Sites? • "I Gave up MySpace For Lent," • a new teacher is warned that she shouldn't be on MySpace at all • Ohio policy has strongly urged (or perhaps mandated) that professors and teachers get off the social networking sites. 40

41. What is the Impact on Online Commerce on Global Business • The Customer has changed dramatically • The Seller has not kept up • The Seller no longer understands: • How to communicate to the customer • When to communicate to the customer • Where to communicate to the customer • HOW DOES THIS AFFECT EDUCATORS? 41

42. Q & A