E-Commerce Expo London 2011

Vincenzo CalenneHead Of Sales Ecommerce Ciao UK

Social Shopping: where do you stand?

Ciao at a glance

Shopping is moving

Importance of online reputation

Conclusion

Today’s agenda

Online criticism

Ciao at a Glance

Source: Comscore Comparison Shopping, ComScore, July 2011

Media Total Unique Visitors (000) % Reach

Average Daily

Visitors (000)

Total Pages Viewed

(MM)

Total Visits (000)

Average Minutes per

VisitAverage Visits

per Visitor

Total Internet : Total Audience 42,249 100.0 33,311 117,584 2,932,316 26.5 69.4

Retail - Comparison Shopping 16,676 39.5 1,466 186 47,528 1.9 2.9

1 Google Shopping 6,067 14.4 376 38 12,823 1.6 2.1

2 Shopzilla.com Sites 4,504 10.7 222 25 7,291 1.3 1.6

3 SUPAPRICE.CO.UK 3,670 8.7 169 11 5,525 1.1 1.5

4 Nextag.com Sites 1,772 4.2 56 6 2,054 1.4 1.2

5 Bing Ciao 1,665 3.9 63 7 2,046 2.8 1.2

6 Shopping.com Sites 1,179 2.8 65 3 2,057 1.2 1.7

7 ValueClick Sites 1,129 2.7 59 7 1,959 1.7 1.7

8 Kelkoo Sites 1,051 2.5 45 3 1,418 1.4 1.3

9 PRICEDUMPER.CO.UK 1,021 2.4 41 3 1,307 1.8 1.3

10 SMARTERDEAL.CO.UK 1,004 2.4 44 2 1,390 1.3 1.4

Ciao at a glanceAbout ciao.co.uk

#5

#4

#1 #1

#1 #1

#3 #5

Source: Comparison Shopping, ComScore, July 2011

4.326.000 unique visits

7.252.000 unique visits3.763.000 unique visits

1.665.000 unique visits

210.000 unique visits

748.000 unique visits

4.099.000 unique visits

Ciao at a glanceAbout Europe

Ciao at a glanceBing and MSN shopping channel across Europe

price comparison

…and many product offers

Ciao at a glanceWhat is Ciao.co.uk?

users opinions on products

Ciao at a glanceWhat is Ciao.co.uk?

users opinions on merchants

Ciao at a glanceWhat is Ciao.co.uk?

Shopping is moving

Percent Reach of Internet Users Average Minutes per Visitor

Jan-10 Jan-11 Point ChangeEurope 66.00% 74.50% 8.5 52.4

United Kingdom 83.20% 89.40% 6.3 84.1

France 76.40% 87.00% 10.5 83.2

Germany 73.10% 82.10% 9 63.8

Ireland 64.90% 80.70% 15.8 35.7

Netherlands 75.30% 80.20% 4.9 50.2

Spain 68.40% 76.70% 8.3 39.7

Denmark 68.20% 75.10% 7 40.6

Sweden 73.80% 73.60% -0.2 43.7

Norway 66.70% 73.40% 6.7 38

Belgium 71.70% 73.30% 1.6 29.7

Switzerland 70.30% 73.20% 2.9 34.5

Poland N/A 72.40% N/A 20.4

Austria 61.30% 71.40% 10.1 34.1

Turkey 68.00% 69.80% 1.9 73

Italy 67.40% 69.50% 2.1 21.4

Finland 63.80% 66.50% 2.7 29.8

Portugal 60.20% 65.90% 5.7 23.9

Russian Federation 68.83% 65.32% 2.2 33.7

Reach of Retail Sites in European Countries - January 2010 vs. January 2011 - Age 15+ - Home and Work Locations

Shopping: increasing reachAlmost 90% in the UK

Growth (%) Among Mobile Subscribers

Total Mobile Audience EU5 France Germany Italy Spain UK

Accessed Auction Sites 36% 6% 44% 1% 10% 95%

Accessed Online Retail Sites 37% 24% 45% -5% -5% 118%

Accessed Shopping Guides 31% 20% 42% 10% 21% 71%

Smartphone Audience

Accessed Auction Sites 76% 51% 100% 13% 35% 141%

Accessed Online Retail Sites 80% 80% 106% 8% 22% 163%

Accessed Shopping Guides 72% 86% 98% 25% 63% 109%

Growth in Mobile Retail Activity Penetration Among Total Mobile Subscribers and Smartphone Owners - 3 Month Avg. Ending May 2011 - YoYTotal EU5 (FR, DE, IT, ES and UK), Age 13+

Growth of retail on mobile devicesIncreasing by 100%-130%

Mobile: retail vs other categoriesFastest growing mobile categories

Future scenario:importance of online reputation

Merchant Selection

Purchase Experience

Share personal

Experience

Product Selection

ConsumerAdvice & opinions

Advice & opinions

Research

Buying Cycle Consumer decision making process

I don't know

Merchant advice

Personal experiences

Opinions of friends and family

Expert opinions

Other consumers experiences

Source: Penn, Schoen, Berland Associates, Inc., LinkShare Trend Watch Research: New Info Shoppers, Recession Buyers and the 2009 Online Shopping Outlook, 2009

46%

24%

16%

8%

3%

2%

Purchase Decisions: what really mattersAdvice: online and offline

Source: IBM Institute for Business Value analysis. CRM Study 2011

Mobile: reviews and opinionsReasons consumers go to social media or social networking sites

“People are looking to own the research process, not to be told by either salespeople or advertisers what the product is about.”3 -Penn, Schoen & Berland Associates

79% of online UK retailers surveyed reported that the main benefit of consumer-generated

rating and reviews was that they improved site conversion rates.2

-eMarketer, 2009

68% of users have changed their

purchase decision based on other

consumer reviews.1

Source: 1Ciao User Survey ciao.co.uk, April 2011 | 2eMarketer, 20093 Penn, Schoen & Berland Associates Market Research 2010 |

Power Shifting: companies to consumersConsumer reviews

Online criticism

Online criticismNegative review: typical situation

fear suspicion

frustration

distrustuncertainty

Online criticismHow do you react?

Moderate or delete commentsRespond privately to

the criticismRespond publically (in the same forum)

to the criticism

Ignore it

Other Don’t know

How do you deal with criticism with your product / company

on the Internet?

37%

Source: Visitor survey at Internet World London, April 2009

38%

4%14%

3% 4%

Online criticismHow do you deal with criticism?

Action vs passiveNegative review: response

Action vs passiveFeedback request within email reply

Action vs passiveOther examples: UK

Action vs passiveOther examples: Spain

Action vs passiveOther examples: the Netherlands

Action vs passiveOther examples: Italy

Conclusion

Assign resources

Identify relevant sites

Check regularly

Understand criticism as an opportunity

Develop dialogue

Conclusion

Vincenzo CalenneHead of E-Commerce Sales UK

vincenzo.calenne@microsoft.com www.ciao-group.com

Microsoft LtdCiao Commerce Division

Cardinal Place 100 Victoria Street London SW1E 5JL

UK

Ciao in Social Media:http://twitter.com/ciao_uk

http://www.facebook.com/ciaouk

Questions?