Watch the full session on SMW Insider: https://socialmediaweek.org/insider/sessions/leveraging-social-platforms-along-entire-customer-journey/

1. LEVERAGING SOCIAL PLATFORMS ALONG
THE ENTIRE CUSTOMER JOURNEY

2. BENCHMARKING DIGITAL PERFORMANCE
BENCHMARKING
EDUCATION
RESEARCH

3. MEMBERS

4. INTRODUCTION
SOCIAL PLATFORMS 2017

5. 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
CHINALOCALIZATION
KEY TRENDS SOCIAL FUNNEL

6. 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

7. 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

8. 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

9. 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

10. BRANDS DRIVE, CONSUMERS BLOCK …
BRANDS CONSUMERS
1 in 4 US adults currently block ads
— 1 in 3 will do so by 2017

11. !
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 STORY2016
Conversational Ads
6-Second Video Ads
First-View Video Ads
Canvas Ads
Pre-Roll Video Ads on
Instant Articles
Sponsored Discover
Channels

12. 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.”

13. 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

14. 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%

15. DIVERGENT STRATEGIES
CPG LUXURY

16. 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

17. 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
TotalInteractionsPer
ThousandFollowers
Posts Per Week
Q3 2015
Q3 2016

18. January 2016 vs. September 2016, n=289 Brands
Percentage of Brands With Snapchat Account, by Vertical
BRANDS FLOCK TO SNAPCHAT
Source: L2 Intelligence Report: Social Platforms 2017.
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
Consumer
Electronics
n=13
Travel
n=15
January 2016 September 2016
Average: 64%

19. 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!

20. January 2016 vs. October 2016
Total Index Brands & Advertisements Present on Snapchat Discover
OPENING THE AD FLOODGATES
Source: L2 Intelligence Report: Social Platforms 2017.
161
387
Total Advertisements
23
63
Total Advertisers
January 2016 October 2016
+175% +140%

21. February–October 2016, n=22K Facebook Posts
Facebook Live Videos as a Percentage of Total Facebook Videos
2017: THE YEAR OF FACEBOOK LIVE?
Source: L2 Intelligence Report: Social Platforms 2017.
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

22. 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%

23. 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

24. 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

25. American Eagle: Mobile-First #WeAllCan Campaign
AEO: BRAND REPOSITIONING
Source: L2 Intelligence Report: Social Platforms 2017.
Target Audience
American Millennials
Campaign Assets
Mobile-First Advertisements
Millennial Influencers
Platforms
Facebook Canvas Ads
Snapchat Ads
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
278K Views

26. ENGAGING EXISTING COMMUNITIES
Source: “The Future of Social,” Simply Measured, Firebrand Group, & Social Fresh, August 2016.
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
34%
of social media marketers
cite customer loyalty as a top
social media goal

27. Instagram Engagement Snapchat Engagement
Red Bull: Widely Spread Content and Weekly SnapTV Series
RED BULL: ENGAGING CONTENT
Source: L2 Analysis of Unmetric Data.
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
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

28. Can social
commerce work?
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY

29. [CATE
GORY
NAME]
[PERC
ENTA[CATE
GORY
NAME]
[PERC
ENTA
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.

30. Absolut Vodka: Drive-to-Store / Offer Code Messenger Ad
MESSAGING POTENTIAL
Source: L2 Intelligence Report: Social Platforms 2017.
Sponsored posts drive to Messenger where consumer is geo-located
and receives personalized redeemable code
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY

31. RETENTION LEVER
Source: “The Future of Social,” Simply Measured, Firebrand Group, & Social Fresh, August 2016.
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
17%
of social media marketers
cite customer service as a top
social media goal

32. November 2016, n=425 Brands
US & Global Accounts
Facebook Messenger Adoption, by Vertical
LIMITED MESSAGING INNOVATION
Source: L2 Intelligence Report: Social Platforms 2017.
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
Consumer
Electronics
n=27
Activewear
n=28
Facebook Messenger Indicated Response Time Within 1 Hour Messenger Bot
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY

33. Sephora, The Macallan, and Bud Light: Facebook Messenger Bots
HIGH TOUCH SERVICE
Source: L2 Intelligence Report: Social Platforms 2017.
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
Product Recommendations Product ReplenishmentIn-Store Appointments

34. 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
Source: L2 Intelligence Report: Social Platforms 2017.
366 350
217
148 143 123
101 101
64
309 305
147 135 132
101 97
77 64
Consumer
Electronics
Retail Activewear Beverages Auto Watches &
Jewelry
Beauty CPG Fashion
Q1 2016 Q3 2016
-15% -13% -32% -9% -8% -18% -4% -24% +0%
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY

35. Advocacy
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
WHAT’S MISSING?

36. Four Seasons: Instagram Advocacy Strategy
NOT JUST IN BEAUTY
Source: L2 Intelligence Report: Social Platforms 2017.
AWARENESS ENGAGEMENT CONVERSION RETENTION ADVOCACY
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

37. CONCLUSIONS
SOCIAL PLATFORMS 2017

38. 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.

39. QUESTIONS?
EVAN.NEUFELD@L2INC.COM

40. 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

41. 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