Today, Lithium officially announced its acquisition of Klout and its 60-plus employees. Klout has had its fair share of controversy over the years — primarily because its primary influence score tried to be a universal number, independent of context, and it provided limited offerings for marketers. So when the acquisition news leaked a few weeks ago, many of us who have been following both companies have been scratching our heads: Why would Lithium, a leading community platform vendor, spend hundreds of millions to scoop up Klout? Here is my and my colleague Zachary Reiss-Davis’ perspective on the acquisition:
Lithium claims that Klout will enable it to round out its social marketing offerings. Today, Lithium provides a robust community platform and a social engagement platform, providing marketers with solutions for establishing both depth and engagement. But the company lacks a solution to help marketers meet their reach objectives. According to Lithium, Klout will help it close this gap by enabling Lithium to implement future advocacy offerings and do so through Klout’s reach of 500-million-plus consumers.
Walt Disney once said, “of all our inventions for mass communication, pictures still speak the most universally understood language.” Perhaps he was more prescient than anyone realized at that time: Decades later, the onslaught of social media and the emergence of mobile phones have made his assertion seem truer than ever, as consumers have gained the tools to share a picture with the global population in a matter of seconds. Today, the fascination with pictures has come to define communication that spans both the offline and online worlds.
According to Forrester’s Consumer Technographics® data, sharing visual content is indeed a universal phenomenon — but it is most prevalent in countries like China, India, and Brazil:
Some believe that our obsession with taking and sharing photographs speaks to a modern narcissistic culture. Indeed, Pew Research reports that the majority of Millennial consumers post “selfies” on social networking sites. However, when Ellen DeGeneres’ Oscar “selfie” became the most retweeted tweet ever this week, narcissism was hardly part of the conversation. Instead, Ellen’s post exemplified what can happen when the power of the picture meets the power of social media: large-scale awareness, excitement, and engagement.