In case you haven’t noticed, the number of smartphone users in Asia Pacific has grown – we estimate that it breached the 1 billion mark in 2014. This is the first time that more people in the region used smartphones than feature phones.
When coupled with the fact that the region is also a leader in innovative messaging apps, such as WeChat, Line, and KakaoTalk, marketing professionals can start to see how Asia Pacific is ripening into a mobile-led commerce and marketing harvest – creating a commercial marketplace where users interact and trade and offering organizations growing sales and marketing opportunities.
However, many B2C marketing professionals today limit that potential by only focusing on promoting flash sales or discounts, as seen on the likes of WeChat and Line. Marketers must consider longer-term use cases to fully mine these apps' potential. Unless a messaging app user is specifically searching for and ready to buy a particular product or service, marketers who continue to pepper the app’s chat room with meaningless discount messages will have wasted their investment. In addition, users will likely move to the next competitive (i.e., cheaper) offering when it comes along, running the risk of marketers facing a race to the bottom with cutthroat pricing.
Messaging apps have the potential either to become digital platforms or to significantly enhance the power of current platforms because they so clearly deliver the three things that determine digital platform power: frequent interactions, emotional connection, and convenience. WeChat is for example already morphing into a digital platform offering, thanks to the deep pockets of its parent company, the Chinese Internet giant Tencent.
While today’s opportunities are limited by consumers’ reluctance to engage with brands on such intimate channels and by immature marketing tools, it is definitely time for marketers to experiment and to anticipate the next steps.
Indeed, you’ve surely heard of the second-largest acquisition in tech history, Facebook’s purchase of WhatsApp for $19 billion. However, you may not have heard of KakaoTalk, Kik, Line, Secret, Snapchat, Tango, Viber, or Whisper.
These messaging apps are the new face of social in a mobile context.
Contrary to social media that are generally public broadcast mechanisms that facilitate one-to-many communications, a messaging app is a typically private, one-to-one or one-to-few communication and media tool optimized for mobile. Such smartphone apps can access your address book, bypassing the need to rebuild your social graph on a new service. As Evan Spiegel, the CEO of Snapchat, puts it, “We no longer capture the real world and recreate it online – we simply live and communicate at the same time.”
By now, you've surely heard of the second-largest acquisition in tech history, with Facebook acquiring WhatsApp for $19 billion.
However, you may be less familiar with other messaging apps like LINE, KakaoTalk, KIK, Nimbuzz, SnapChat, Vibes, Whisper, and many others.
If you think messaging apps are just a free way to communicate, you’re missing their potential: They are Mobile’s Trojan horse, as explained by my colleague Julie Ask here.
Messaging apps are mushrooming.They illustrate perfectly the age of the customer, which Forrester defines as a new business era where your customers are now empowered through social, mobile, and other technologies giving them the power to disrupt your business. Why? Because they are mastering the four key market imperatives Forrester has identified as critical to differentiate in the age of the customer:
■ Transforming the customer experience over SMS and other messaging tools. Messaging apps offer differentiated and seamless experiences over SMS and other mobile communication tools. For example, they offer advanced group messaging functionalities, multimedia features, constant innovation, and ability to opt-in or follow brands at consumers’ convenience. They are now morphing into marketing platforms redefining social media.
The vast majority of Facebook and Twitter usage is coming from mobile devices, and both companies generate a significant proportion of their revenues via mobile ads (53% for Facebook and more than 70% for Twitter end Q4 2013).
Facebook is splitting into a collection of apps (Instagram, WhatsApp, Messenger, Paper, etc…) and likely to announce a mobile ad network at its F8 developer conference in San Francisco in a couple of days. While failing brand marketers, according to my colleague Nate Elliott, Facebook is increasingly powerful at driving app installs for gaming companies and performance-based marketers who have a clear mobile app business model.