Dentsu Commerce Introduction to Commerce Principles
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Dentsu
Commerce
Introduction to
Commerce Principles
Introduction
Commerce is changing
DENTSU AEGIS NETWORK
This is where we used to look for growth
Commerce is changing PRODUCT SEARCHES ARE MOVING TO MARKETPLACES
FIRST CHANNEL USED WHEN TOP 5 WAYS AMAZON HAS
RESEARCHING PRODUCTS DIGITALLY INFLUENCED SHOPPING BEHAVIOUR
GROWTH IS SHIFTING TO ECOMMERCE
SHARE OF TOTAL GLOBAL RETAIL PROJECTED FOR 2018-2021
Check prices on Amazon 41%
Brand.com
16% Start product search on Amazon 36%
17.5%
15.5%
Amazon Read reviews on Amazon 33%
13.7%
Search Engines 55%
11.9% 28% Shop less often at retail stores 27%
10.2%
Shopping behaviour not influenced
by shopping with Amazon 20%
2017 2018 2019 2020 2021
GLOBAL EC MARKETS RISING (US$B)
VARIED PLATFORMS LEAD TO VARIED BEHAVIOR
UK
REPEAT PURCHASES
Canada Russia
$30 $99 Germany $30 FIRST-TIME PURCHASES
$73
S Korea
France
US $37
$340
$43
China Japan 19% 20%
$672
$79
Brand.com
50% Brand.com 34%
Offline Retail Marketplaces
Brazil 31%
$19
Marketplaces 47%
Offline Retail
DENTSU AEGIS NETWORK
Brick & Mortar Reborn Machine Learning + AI Voice Visual Augmented Reality Content is Commerce Amazon / Alibaba / Artisans Evolved Fulfillment EC Packaging Shopping Everywhere DENTSU AEGIS NETWORK
Creating a Need to Adapt to New Behaviours
Convenience Relevance Value
Trust
That Must Be Applied Across All Touchpoints
Marketplaces Social Brand.com Retail
Identifying unique and
Cross channel Managing conflict
overlapping audiences
For measurement
and to deliver optimal
and
and optimization cannibalization
experiences
DENTSU AEGIS NETWORK
Commerce in APAC
Leading the way
DENTSU AEGIS NETWORK
Growth in Commerce is Coming from Asia
AVERAGE TOTAL AMOUNT SPENT ON E-COMMERCE PURCHASES BY EACH E-COMMERCE
USER IN USD
ABOVE GLOBAL BELOW
GLOBAL AVERAGE AVERAGE GLOBAL AVERAGE
CHINA: $710
INDONESIA: $228
SINGAPORE: $1,022
THAILAND: $212
$733
JAPAN: $921
INDIA: $118
HONG KONG: $821
MALAYSIA: $64
AUSTRALIA: $815
VIETNAM: $55
PHILIPPINES: $33
SOURCES: GLOBALWEBINDEX. 2016. BASED ON A SURVEY OF INTERNET USERS AGED 16-64.
DENTSU AEGIS NETWORK
SEA Internet Economy Report
SEA GMV - $B
200
153
150
150M Average Order
100
49M Value
50 38 $15 - $20
2015 2019 5
0
2015 2019 2025
Groceries, personal care
eCommerce Active Users and beauty products are
eCommerce becoming standard items
in Southeast Asians’ online
e-Commerce blazes through $38 shopping baskets.
billion, turbocharged by shopping
festivals
Source: e-Conomy SEA 2019 - Google, Temasek, Bain & Company
DENTSU AEGIS NETWORKMarketplaces in APAC
--
DENTSU AEGIS NETWORKTop 10 most visited E-commerce In Southeast Asia, Q2 2019 – Total Monthly Average visits on Desktop and Mobile Web DENTSU AEGIS NETWORK
eCommerce Shopping Apps in Southeast Asia With the most Monthly Active Users – iPhone and Android Phone Combined DENTSU AEGIS NETWORK
Study Coverage
Markets Tier 1 Marketplaces
Singapore Lazada Qoo10 Shopee
Malaysia Shopee Lazada Lelong/Ebay
Indonesia Tokopedia Shopee Lazada/Blibli
Vietnam Shopee Tiki Lazada
Philippines Lazada Shopee Ebay
DENTSU AEGIS NETWORKCommerce
Dentsu Commerce Framework
DENTSU AEGIS NETWORKThe Commerce Success Framework
AVAILABILITY
REPEATABILITY
BUYABILITY FINDABILITYPrioritising and succeeding anywhere in commerce
Availability Findability Buyability Repeatability
Where and when Are you easy to Are you better than
Is the experience
consumers are find and relevant? the competition?
engaging?
looking?
Position Content
Audience Insight Purchase Experience
Optimisation Effectiveness
Plan presence and Optimise visibility Optimise product Audit & monitor
availability priorities where your audiences listings for purchase reviews and
by audience & demand are and ensure you conversion (and sentiment. React
can be found organic position) quickly to
opportunitiesCommerce Offering
Dentsu Omnichannel Proposition
DENTSU AEGIS NETWORKOmnichannel Proposition
Digital third- Brick-and-
Digital Owned
Parties Point Mortar Point
Properties
of Sales of Sales
Ex: brand.com Ex: Lazada Ex: Owned stores, malls
DENTSU AEGIS NETWORKThe Product Matrix
Digital Owned Digital 3rd Party Brick-and-mortar
Properties POS POS
Availability
Findability
Buyability
Repeatability
DENTSU AEGIS NETWORKCommerce Offering
Dentsu Omnichannel Proposition
DENTSU AEGIS NETWORKBuilding Capabilities AVAILABILITY
Availability
Digital Owned Digital 3rd Party Brick-and-mortar
Properties POS POS
eCommerce built:
Magento, Prestashop,
OScommerce
Marketplaces
Management
Inventory
Management
DENTSU AEGIS NETWORKHow to reach out to consumers FINDABILITY
Findability
Digital Owned Digital 3rd Party Brick-and-mortar
Properties POS POS
Paid Media
SEO
Marketplaces
Optimisation
DENTSU AEGIS NETWORKHow do you stand against competition BUYABILITY
Buyability
Digital Owned Digital 3rd Party Brick-and-mortar
Properties POS POS
CRO
Data Feed
Management
Propensity retargeting
DENTSU AEGIS NETWORKRepeat & grow REPEATABILITY
Repeatability
Digital Owned Digital 3rd Party Brick-and-mortar
Properties POS POS
Email marketing
Marketplaces
Marketing
CRM Integration
DENTSU AEGIS NETWORKMeasurement
Across your lines of business
DENTSU AEGIS NETWORKMeasurement across your Point Of Sales
Digital Owned Digital 3rd Party Brick-and-mortar
Properties POS POS
Web Analytics
GA360
Adobe
Tag Management
Marketplaces
Intelligence
In-store analytics
O2o Intelligence
DENTSU AEGIS NETWORKThe Measurement Matrix: Understand what is
valuable to your business growth
Strategic Lifetime Value
Incremental % of sales
Per Visit Cost Value ARPU
Revenue w/ Tests influenced by Media
Assisted
Inbound Clicks Conversions Conversion Rate Repeat Purchases
Conversions
Recency
CTR Page Value Revenue
Frequency
Viewability Bounce Rate Path Length Share of Voice
Tactical Impressions Visits
Real Time Weekly Monthly Quarterly 6-Monthly
DENTSU AEGIS NETWORKCase Studies
Driving Success in Commerce
DENTSU AEGIS NETWORKCase Study: Nestle
Build & Implement a multiband marketplace
The Challenge Approach
Nestlé was looking to implement a multi- Isobar Commerce integrated local
brand marketplace website for its Japan payment methods including credit card,
market. pay at convenience store, and cash on
delivery for the Japan market.
WMS, Reporting, and CRM was also
integrated with Nestlé Japan internal
systems.
Isobar Commerce implemented
complex subscription modules to create
convenient shopping experiences.
DENTSU AEGIS NETWORKCase Study: Foot Locker
Activating Foot Locker in APAC and planning for long term growth
The Results
The Challenge The Approach
Foot Locker were preparing to enter
the APAC market with a combined
physical/e-commerce launch. They
Our first step was to educate and inform:
moving Foot Locker away from their EU
business model with detailed
217 %
Increase in ROAS for HK
faced a problem typical of global insights/research around the APAC consumer
landscape.
brands encroaching on Asia for the first
time: a lack of customer data and We then prepared a bespoke launch
understanding of market nuance. framework for an initial 3 deployment across %
As such, they required a strategic
partner with deep expertise across the
Singapore, Malaysia and Hong Kong.
Ensuring supply met demand was crucial
24
ROI uplift
%
535
performance spectrum and the scale (especially with Foot Locker’s crowded
calendar of in-store events and exclusive 15% Increase in MY
impressions
ROAS on branded
terms
required to accommodate simultaneous
releases). With this (and APAC’s equally busy In one week
market launches. PH schedule) in mind, we strategized a data
feed management system for real-time
product/model updates – whilst building a
digital calendar mapped out to align with
physical events whilst full e-commerce
capability was being readied.
DENTSU AEGIS NETWORKCase Study: Converse
Converse x Lazada Super Brand Day campaign
The Challenge Approach The Results
Converse offers trendy and vibrant As there are 30% commitment targets to hit,
sports apparel for both men and channels and creative formats that we
women however, Converse products proposed do not incur high CPC/CPM.
are easily cannibalized by its
popular parent brand, Nike. We launched teaser phase to drive awareness
prior to the actual D-day. Creatives were
grouped into teaser count down, actual day,
30%
Create anticipation for Converse’s
Super Brand Day in collaboration and promo discount ads to build excitement to Above target
with Lazada, complementing the the consumers and encourage them to add
work that will be done through their wishlist to cart for the D-Day. Ad copies
performance marketing in 2 weeks were tailored to the creatives and product feeds
across 4 markets. to ensure alignment.
Achieved Overall GMV target by
All traffic are to drive to Lazada MCP CPAS were implemented with Multiple product 30%. Outstanding performance
page. feeds created to prevent ads being paused due from Philippines markets, achieved
to no inventory. more than double of the GMV target
Quick turnaround during the D-day was
important to bring this campaign to a success.
DENTSU AEGIS NETWORKCase Study: Shiseido
Dentsu Online to Offline Business Solution
The Challenge The Big Idea The Results
Shiseido needed to understand the Dentsu combined the paid media Smart decision
impact form their online buying to data with the Shiseido business
their offline business. More than data (CRM, POS numbers, makings
90% of sales were still contributed website, footfalls).
by traditional brick & mortar. Media channels, creatives,
By leveraging the power of our distribution channels
Does online media have an influence platform to match data together,
on consumers purchasing journey? we were able analyse, track and
Are consumers purchasing after optimize the user journey from
seeing Shiseido advertising ? online to offline and attribute
back ROAS on both footfalls and
sales to each channel, audiences,
ROAS uplift
creatives. x17
DENTSU AEGIS NETWORKCase Study: Conversion Rate Optimisation
Optimise on-site Content to Boost Conversions
The Challenge The Big Idea The Results
Lotte Hotels saw that although it was expanding and To better understand Lotte Hotel’s customers’ paths
maximizing site visits, revenue was not meeting to purchase, iProspect created a four-step
% %
49
%
0.9
expectations. optimisation strategy to ensure effective time
management and performance testing:
Lotte had used iProspect previously to boost SEO
and SEM to maximise channel performance, but the 1. Find the point of user drop-off by using Analytics
site visits were not generating conversions – so they 360 data, such as Goal Flow and Shopping
wanted to understand what barriers were preventing Behaviour reports.
people from making bookings. Increase in Increase in
2. Analyse the page and benchmark competitors to
find the cause of the deviation. Booking Rates Total
3. Run A/B tests with Optimize, Google’s integrated conversions
CRO tool.
4. Apply the best-performing learnings to the Lotte
Hotel site.
Employing this strategy, Lotte Hotel and iProspect
tested different site changes which drew the biggest
results across four key variables – relocating menu
items, changing the booking button colour, and call-
to-action, using promo pop-up windows and
displaying special fee-less messaging.
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