BEFI Jan 21 PR Raethke

8/7/2019 BEFI Jan 21 PR Raethke

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The challenge: Online advertising on Communitiesis not paying the bills.

Time to add new sources of income.



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The SocialCom approach: Social Commerce.

Social Commerce: It‘s not about Advertising – it‘s about Convers(at)ion.

Social commerce is what we do in the real world every day. We buygoods in social contexts and timing:

‣ A new digital camera when we plan our vacations‣ A new MP3 player when a friend shows us his latest purchase

and it’s indeed much better and cheaper than ours‣ A spontaneous gift for a relative’s birthday.

SocialCom is about employing these context and timing mechanics onthe Web.



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Enabling Social Commerce



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Product placement

SocialCom manages one of the largest product databases available onthe Internet, containing more than

‣ 50.000.000 products by more than‣

400 shops.Through a simple web application, SocialCom puts a carefully selectedchoice of products in front of your Community members´ eyes. Right inthe context of their Community interaction and custom tailored to userdata and behavior.

It’s not advertising – it’s product placement!



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Process walkthrough

MaleBerlin

39

Input:Anonymized,

clustereduser data

Output:Customized,on-the-yproduct

placements

Skate-boardShoeWii

MaleBerlin

13Lifestyle

3. Access partner shop2. View Product Placements 4. Make purchase1. Access Community prole

Purchasetakes place

on merchantsite

5. interactions (clicks, sales etc)

rating+

rating+++

behaviorinformation

deliveredto

SocialCom



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It’s about the Community

Your audience receives up-to-date and highly targeted productoffers in the form of a “friend feed” – including a best priceguarantee.

The quality of these recommendations increases from day to daysince SocialCom constantly renes them by feeding user responseback into the system.

You as a community owner make real money through salescommissions without worrying about product selection, shopmanagement, or billing and rights issues.



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Since data protection is a sensitive issue, Communities have to be restrictivewith their users‘ prole data. Consequently, SocialCom works withanonymized clustered data only. Clusters like:

For this to work, however, you have to know what kind of products theseclusters are most likely to purchase. How does SocialCom know?

Background

Males30-32 yrs

Rural northernGermany

Sports

Females18-20 yrsBig city,

south-westGermany Movies

MaleAll age groups

Travel

Males + Females20 - 30





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Product data + Socio-demographic data = Sale

Male30-40City

Travel

Male20-30Rural

Movies, Sport

Female30-40Rural

Pets, Music

Male + Female30 – 45

Rural + CityTravel + Pets=

=

=

==

=

=

=



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- condential -

Business model

* average: 8% Sales provision from Online Shops,Bundesverband des Deutschen Versandhandels e.V. 2006: AOV (average order value) 164 EUR

source: http ://www.spiegel.de/netzwelt/web/0,1518,451044,00.html

product placements 100.000

average click rate 3%

average sales rate 2,75%

average commissionper sales transaction* 13,12 €

your earnings 920,04 €

product placements 100.000

average click rate 0,75%

average sales rate 1,75%

average commissionper sales transaction* 13,12 €

your earnings 146,37 €

worst case best case

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http://www.spiegel.de/netzwelt/web/0,1518,451044,00.html







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Wrap-up: What it’s about

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Straightforward, sales-based business model: SocialCom pays out thelions share of sales commissions to partners.

Risk-free: SocialCom doesn‘t replace banner advertising - it adds a wholenew idea of e-Commerce to your site

Communities are free to congure the sources of product placement(i.e. shops) according to sales commissions or existing partnerships

Display of product placements is completely white-labeled andcustomizable for each community

No conict with data protection laws since SocialCom works withanonymized, clustered data only

Product placement is determined by socio-demographic data andconstantly rened by user interaction

Unlike banner advertising, SocialCom places products right into

user‘s community context



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About us

‣ SocialCom is a Berlin-based startup founded by a group of people withoutstanding experience in the Digital Media Industry and a proven trackrecord in creating internet services and boosting sales.

‣ We’re signing up the rst Community partners for SocialCom.

‣ If you’re interested to know more about our product and/or to be amongthe rst to monetize social interactions on your platform, please contactus.



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Contact

Christoph RaethkeFounder, CMO

email: [email protected]: +49 170 817 4460web: www.socialcom.de

mailto:[email protected]






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Male22-24Rural

Hunting

Male26-30Rural

Fashion

Male30-40City

Alcohol

HappyShop-Owner

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Copyright © 2008 - 2009

All rights reserved. No part of this document may be reproduced, transmitted or copiedin any form or by any means, electronic, or mechanical, including photocopy, recording,or any information storage and retrieval system, without permission in writing from the

publisher.

S i lC ® i i t d t d k f th S i lC G bH

Thank you!

"Product placement is another multi billion dollar market emerging right in front of our eyes.“ Ron Conway*

* Ron Conway is an American angel investor based in theSilicon Valley. Prominent investments: Google, AskJeeves,PayPal

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BEFI Jan 21 PR Raethke

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