In Asia Pacific, there is growing recognition that the old way of marketing — driving awareness through push advertising — has sputtered and slowed in the wake of media fragmentation and the disruptive power of digital. Marketers need a new framework to align their marketing decisions to the customer’s experiences with the brand to define customer engagement, budget allocation, and organizational skills.
However, many companies are still in the adolescent phase of social marketing; they have crested the initial wave of social likes and followers, but are now stuck on the next steps. Few have managed to crack the social marketing conundrum — that of showing meaningful return on their social marketing investments. Marketers need to understand and map the customer journey — from enabling discovery to supporting exploration, purchase, and engagement. Astute ones will map each stage of the customer life cycle to an objective from Forrester’s marketing RaDaR model. To create discovery, the objective should be reach. To support exploration, depth is the objective. To nurture engagement, focus on relationships.
I’ve been thinking a lot about Pinterest for the past year. I first planned to write a report about the social upstart last summer. When that deadline passed, I was certain I’d produce something in the autumn. Now here we are in the dead of winter, and at long last today we published our report on how marketing leaders should use Pinterest.
The reason it took so long? Pinterest is confusing. It’s a bundle of contradictions: at once it offers marketers huge potential and huge frustration.
On the one hand, there’s so much opportunity:
Pinterest boasts a fantastic audience. In fact, 21% of US online adults visit Pinterest at least monthly — nearly as many as use Twitter and more than use Instagram and Google+. Those users spend freely online, they’re willing to engage with brands in social media, and when they talk about products on Pinterest they drive vast amounts of traffic to brand sites.
Pinterest’s data has the potential to drive more sales than Facebook’s data. After all, Facebook users generate mostly affinity data: information about their tastes and preferences, based on their past experience with brands and products, that’s better suited to targeting brand advertising than direct marketing. But Pinterest users don’t only share historical affinities; they share the kind of purchase intent data that’s more commonly seen on search engines like Google. And just as ads targeted with Google’s data generate outstanding direct response, so will ads targeted with Pinterest’s data.
I'm frequently asked, "What makes a winning Forrester Groundswell Awards program?" To help you prepare your submissions, here's an example of a winning social depth entry from PGA TOUR Superstore last year and why it stood out:
Every week I get calls from Forrester clients asking how they can measure engagement on Facebook and Twitter. And every time, I tell these marketers the same thing: You must stop measuring social engagement.
I understand that it’s hard to measure social success: Marketers tell us measurement is their single biggest social challenge. And I know that tracking engagement feels like an easy option. But the simple fact is, engagement is not a useful social marketing success metric.
We’ve spoken with scores of social vendors who measure engagement, and none has proven if — or how strongly — engagement correlates to business success metrics like loyalty or sales. Even Facebook itself says engagement doesn’t prove success: In its marketing collateral, Facebook warns that engagement metrics are “not a reliable indicator” of whether social marketing improved your business.
Some say that engagement matters because when people like or share your posts, they reach a broader audience. And your social posts’ reach will go up slightly if people engage. But engagement can’t overcome declining organic reach. Brands’ Facebook reach is already low, and heading lower still. And data from Socialbakers shows that even the Facebook posts that receive the highest level of engagement still get 99% of their reach from paid, not organic, impressions.
After years of pushing brands’ reach lower with one hand (and opening marketers’ wallets with the other) Facebook has finally announced the end of organic social marketing on its site.
In a Friday night blog post the social giant warned brands that “Beginning in January 2015, people will see less of this type of content [promotional page posts] in their News Feeds,” and admitted that brands that post promotional content “will see a significant decrease in distribution.”
Nearly all marketers say they use social media. But many aren’t getting much value from their investments. Despite marketers’ excitement about social media, many say the channel simply doesn’t offer enough return on their investment; for instance, barely one-half of those who buy Facebook ads say they’re satisfied with the business value those ads provide. The sobering reality is that a decade into the era of social media, many social marketers remain baffled by the channel.
The good news? There are success stories you can study to see how social media can work for companies like yours. In April 2014, Forrester announced the winners of the eighth annual Forrester Groundswell Awards. The awards recognize the very best in social marketing — focusing on programs that go beyond engagement metrics to deliver real business value to both B2C and B2B marketers in a range of industries.
Chances are, you've recently visited a brand's webpage and stumbled upon a visually appealing, Pinterest-like media gallery with photos of happy customers and the brand's products. Today, media galleries are all the rage as marketers attempt to capture the priceless content their audiences are generating on social networks and at live events. But before you run out and invest what's left of your 2014 marketing budget on a social content curation platform (see Figure 2 from this report) make sure social content curation will help you:
At the root of human behavior is the impulse for connection. History is our witness: As times change, certain trends emerge that anchor shared experiences, around which people collectively rally. Today, with social media acting as a platform for ubiquitous connections, diverse consumers build solidarity around digital experiences. Beyond simply looking for deals and discounts, individuals who “friend,” “follow,” and “like” brands seek closer brand relationships.
However, while consumers around the world want to be part of a brand community, some cultures are more enthusiastic than others. Forrester's Consumer Technographics® data shows that Latin American online adults are more passionate about engaging with brands for affective reasons than their European and Japanese counterparts:
This variation roughly parallels Hofstede’s dimensions of culture, which suggests that the differences are partially a reflection of cultural nuances: Those populations that are most motivated to share in the brand community are all-around collectivist rather than individualist.
I’ll be curious to hear if there is a business strategy update, but I don’t think we’ll have more insights on what “unbundling the big blue app” really means. I think one possible option is that social data and contextual identity will be the layer on top of Facebook’s new social conglomerate.
I personally will be looking more specifically for an update on mobile app installs. There's no doubt that Facebook has disrupted the app marketing space by becoming a key player in app discovery — which is the key driver behind its mobile ad revenues.
A growing and significant part of this business comes from direct marketers looking to drive app installs, primarily from gaming and other businesses that are increasingly dependent on mobile, such as travel and retail companies. These players know the lifetime value of their apps and have calculated how much they can spend to drive each app download and still have a positive return on investment (ROI). But marketers in more-traditional businesses or who are pursuing other marketing goals should pay close attention to the unique attributes of their mobile social users and optimize their social strategies to engage them.
According to Reuters, Japanese messaging app Line has filed for an IPO valued at over $10 billion.
No doubt the space is heating up. Competition is increasing. Facebook acquired WhatsApp for $19 billion. Japanese Internet giant Rakuten purchased Viber for $900 million. More recently, Kakao Corp (the maker of KakaoTalk, South Korea’s top messaging service and a direct competitor to Line) and Daum (one of South Korea’s largest Internet portals) announced they would merge through an equity swap, creating a company with about $2.9 billion market capitalization!
To put all this activity in perspective, I recently published a new piece of research explaining how messaging apps are morphing into new media portals and are becoming the new face of social.
WeChat is jockeying to become a global digital platform, thanks to the deep pockets of its parent company, the Chinese Internet giant Tencent. The other Chinese Internet giant, Alibaba, which recently invested $280 million in Tango, could also connect the dots between its commerce, payment, media, and social capabilities.
Soon to have 500 million registered online users, Line is definitely a key player in the space. The money to be raised will help in developing the already significant international expansion and further develop the positioning of Line as a “smartphone life platform.” The majority of the $335 million in revenue generated in 2013 came from games and about 20% from stickers — “emoticons on steroids,” as my colleague Julie Ask called them.