If you’ve ever talked to Forrester about social media, chances are you’ve heard of the Social Technographics® Ladder -- our tool for measuring how people use social technologies and for helping marketers (and product strategists and market researchers and others) understand how to engage with those people in the social Web.
Today we’ve released our new 2010 Social Technographics data worldwide (you can see the US data here), and you’ll notice that this year, for the first time since we introduced the ladder, we’ve added a new category of social engagement. The new category -- “Conversationalists” -- is designed to capture the short, rapid conversations that are now taking place on Twitter and through Facebook status updates. How many people are engaged in these behaviors? Almost one-third of European online adults participate in these rapid public conversations every week. In just over two years, this activity has come from nowhere to become one of the most popular social behaviors we track.
And this Conversationalist activity has come along at just the right time, too -- because more “traditional” forms of online contribution have levelled off. The percentage of online Europeans who post their own blogs, videos, photos, or other media -- what we call “Creators” -- hasn’t grown in either of the past two years. And the percentage who participate in message boards and forums or who post comments on blogs or other social sites -- what we call “Critics” -- has grown just one percentage point in Europe each of the past two years.
Working in Europe, I'm constantly hearing about social media programs designed for one country accidentally reaching users in other countries -- especially when they're done in English. Toyota's excellent social media-focused iQ car launch in the UK attracted attention from the US, where the car isn't available. Yesterday a client told me that their Australian marketing team launched a Facebook page that they thought was just for their market -- but when they looked at the analytics, they found that only about 5% of the page's fans were Australian, with the rest coming from other big English-speaking markets.
As I see it, there are two big challenges when global companies use social media:
How do you best leverage social media resources from one country (be they staff, technologies, partnerships, or content) across other countries to improve your efficiency and effectiveness?
How do you keep social media messages that are appropriate for just one market (because product availability, or specifications, or pricing, or marketing message can vary from place to place) from "bleeding out" to reach users in other markets?
On the heels of some positive court decisions earlier this year, Google today announced that they're changing their keyword bidding policies in Europe to match those already in place in the US, the UK, and elsewhere. Most notably, this means European marketers will now be able to display paid listings to users searching for other companies' trademarks. There's lots of coverage around, including:
Obviously, this isn't great news for brands. That's why Louis Vuitton and others were fighting against these policies in court; they've worked hard to build brand recognition and credibility and to drive the consumer desire that leads to a Web search -- and they feel as if Google is making money by selling those consumers to other marketers at the last moment.
But brands don't always lose. Sometimes those other marketers will be competitors, of course -- but sometimes they'll be the channel partners of the brands being searched for. Sony, for instance, shouldn't have any problem with Amazon.com and other retailers advertising Sony's digital cameras when consumers search for those cameras by name. For the retailers, then, this decision is a win: They have more freedom than before to target in-market buyers, no matter the brand for which they're searching.
One of the first tasks I settled on when I returned to Europe this year was to update our online ad forecast. After months of research, I’ve just published that report, ‘Western European Online Advertising Forecast Through 2014’ – and I’m happy to say that overall, the picture that’s developed is one of an industry returning to health. 2009 wasn’t a great year for the market, but thanks to a strong fourth quarter it wasn’t the terrible year everyone was expecting either – and more importantly, it looks like the weakness was a short-term blip rather than the beginning of a prolonged market slide. Western European online ad spending – which we define as the total of display ad spending and search spending in 17 countries – totalled €9.6 billion in 2009, and will grow to €13.9 billion in 2014.
When you dig a bit deeper, however, it becomes clear that different sectors of the market will have differing fortunes over the next five years. We think the big story between now and 2014 will be online display advertising. After a year of stagnation in 2009 – when it grew by just 1% across Western Europe – we think display is starting to look as healthy as ever. With huge advances in targeting helping response marketers deliver their ads to the right users, and with rich ad formats convincing brand marketers to shift more of their budget online, display will grow by 4% in 2010 and hit double-digit annual growth by 2013.
International orders grew 34% for HP . . . not this year but actually back in 1964 when non-US orders accounted for 23 percent of HP’s revenues. While the growth of non-US tech revenues is in the news today, HP’s international orders first exceeded domestic orders not recently but as far back as 1975.
In my research on market entry and market opportunity assessment (MOA), I recently spoke to strategists at HP about how they evaluate markets. As I was leaving the building, I stopped in to the HP museum and spent some time with the HP archivist. The highlights of the visit include seeing the first HP device built in the now famous Palo Alto garage and a calculator that brought back memories of my father in his overstuffed chair “figuring out how to pay for college.” I was not only impressed by the history embodied in that room but also with the value that HP places on recording and memorializing its “life” as an organization. Not to sound too sappy but it really brings the company and the industry to life.
I’ve spent the last few weeks reading through some documents on the history of HP’s entry into international markets. There are valuable lessons to be gleaned from their experiences. I’ve written about many of those lessons in reports and blog posts but thought I'd draw out a few of them here.
A recent report from my colleague Alexander Hesse on 'The State Of Mobile Banking In Europe: 2010' shows that about one in eight European Net users with a mobile phone use mobile banking today — with SMS account alerts being the most common type. Many European banks like Rabobank and Lloyds TSB let customers set up time- and event-triggered text alerts, but currently, only 10% of European online mobile phone users actually use them.
We expect that 39% of European mobile phone users will use the mobile Internet by 2014. Why? Smartphones becoming the norm, more widely available, all-you-can-eat data plans, and more compelling content will drive uptake. Today's iPhone and BlackBerry users are, for example, already nearly three times as likely to use mobile banking as other mobile phone users.
I’m excited welcome Principal Analyst Nate Elliott back to our London offices. Although he’s from New York and spent the last year working in Vancouver, many of our European clients will already be familiar with Nate's analysis: he previously spent 2 years based in London and another 2 in Berlin covering interactive marketing in Europe.
ACCOR, the global hotel chain, just launched an iPhone application.
This is just one of the many examples of travel brands leveraging the mobile momentum. Airline companies have always been at the vanguard of integrating mobile into their strategies, but it looks like many other travel brands from hotel chains, airports, rail companies, car rental companies, and travel-related brands (from Lonely Planet to luxury brands) are now tapping into existing mobile opportunities and building mobile products that meet burgeoning customer demand.
Travel is indeed inherently mobile. Now that the promise of location-enhanced services is beginning to be fulfilled on mobile phones, travelers are starting to use their devices as personal travel assistants. More than 10% of European Internet travelers use their mobile phones to look up flight or train schedules. Frequent business travelers are the ideal target group, as they are more likely to be regular users of the mobile Internet and are more likely to spend while traveling. More than 30% of them are interested in booking train tickets or checking in for a flight via their mobile phones.
This report looks at the state of the European mobile market and at how consumers are using mobile services. We have created different profiles looking at how consumers are using their mobile phones in the different countries.
Over the past two years, the introduction of the iPhone has changed the way consumers and brands perceive mobile phones. It acted as a marketing catalyst, raising awareness of smarter devices and conveying the idea that there are as many mobile services as there are consumers. Consumers will continue to shift their attitudes toward mobile phones — perceiving them not only as communication tools but also increasingly as entertaining and productive devices that can help them in their daily lives. More than 40% of European consumers are beginning to demonstrate sophisticated usage of mobile services.
We expect this to grow over time led by the two most sophisticated group of users (SuperConnecteds and Entertainers). They will change the general perception of mobile phones:
Many innovative start-ups have pioneered mobile social networking in the last few years: BuzzCity, Peperoni, Fring, Nimbuzz, eBuddy, Zyb, Plazes, Loopt, Foursquare and many others demonstrated the potential of the market.
In the last few months, a bunch of announcements clearly showed that the convergence between mobile and social computing is gaining traction and attracting the largest stakeholders: