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.
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.”
Ever since Facebook CFO David Ebersman admitted last October that young teens were visiting the site slightly less frequently, most have accepted as fact that young people are fleeing Facebook en masse. Ivy League researchers have forecast that the service will be all but dead by 2017; President Obama recently claimed that young people “don’t use Facebook anymore”; and when comScore recently reported that fewer college students were using Facebook, media outlets ran stories on the “social platforms college kids now prefer.”
But if you take a closer look at the data it tells a very different story. Sure, many data sources show that Facebook’s usage among young people has declined slightly — but the drops are small, and the huge majority of this audience still uses the site. For instance, that comScore report only found a three-percentage-point drop in college-aged adults’ Facebook usage and reported that 89% of this audience still used Facebook — far more than used any other social site.
To investigate teens’ social behaviors further, we recently asked 4,517 US online youth (aged 12 to 17) not just whether they use social sites like Facebook, Instagram, Snapchat, and Tumblr — but if they use those sites “about once a day,” “at least a few times each day,” or even if they were on any of the sites “all the time.”
In her recent report, my colleague Reineke Reitsma revealed that European consumers interact with a diverse suite of social networking sites, with Facebook and YouTube leading in terms of consumer engagement. Pinterest, however, is an outlier: European consumers demonstrate minimal interaction with Pinterest compared with both other social media sites and their US peers. According to Forrester’s Consumer Technographics® data, 18% of US online adults regularly visit the website but only 2% of European online adults across the UK, France, Germany, Italy, and Spain visit Pinterest once a month or more:
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 advertising industry mega-trend of the last decade — ad dollars shifting from offline to online media — is continuing in this decade, as well. This is because more and more users are becoming "addicted" to the Internet. According to a recent study by the Pew Research Center, “The Web at 25 in the U.S.,” it has become harder for consumers to give up the Internet than TV. Fifty-three percent of Internet users say the Internet would be very hard to give up, up from 38% in 2006. Only 35% of adults say their television would be very hard to give up, down from 44% in 2006.
The mega-trend of the decade is the shift of ad dollars from desktop/laptop to mobile devices. Based on Forrester estimates, US mobile ad spend was just 6% of total US online ad spending in 2011. The share of US mobile ad spending in the total US online ad spending is expected to reach 44% by 2019. All three components of mobile advertising — display, search, and social — will witness increases in their spend levels.
Mobile display. There is an increasing shift of ad spending from mobile Web to in-app display ads. This is because apps capture most of the smartphone usage. According to a recent study by Flurry, apps capture 86% of usage, whereas only 14% of US mobile consumer’s time is spent on mobile Web. In-app advertisements and mobile video will drive the growth of mobile display ad spending.
It’s no longer just your marketing team that uses social media for business purposes. Employees across the entire organization use social media for personal and professional reasons, leveraging social to drive real business for your company. The opportunities to enhance your brand, deepen customer relationships, and glean new customer insights are all too valuable to ignore -- but the risks are real too.
Moreover, the legal and regulatory landscape is evolving rapidly, complicating the ways in which you can manage social media and the myriad reputational, security, and privacy risks (among others) that expose your organization. To take advantage of these opportunities and still protect your company, you need new tools and technology to do this effectively.
[2015 UPDATE: Yes, Instagram is still the king of socail engagement. But top brands' Instagram engagement rates fell dramatically in 2015. Read more here.]
Recently, Forrester studied more than 3 million user interactions with more than 2,500 brand posts on seven social networks and confirmed what marketers have long suspected: People don’t engage with branded social content very often.
On six of the seven social networks, the brands we studied achieved an engagement rate of less than 0.1%. For every 1 million Facebook fans those brands had collected, each of their posts received only about 700 likes, comments, and shares. On Twitter, the ratio was about 300 interactions per 1 million followers.
But one social network absolutely blew the others away when it came to delivering engagement: Instagram. Our study found that top brands’ Instagram posts generated a per-follower engagement rate of 4.21%. That means Instagram delivered these brands 58 times more engagement per follower than Facebook, and 120 times more engagement per follower than Twitter.
What does this higher engagement rate look like in practice? Last month, Red Bull posted a video of a unique snowboarding half-pipe on both Facebook and Instagram. A few days later, we noted that the brand’s 43 million Facebook fans had liked the video just 2,600 times (a 0.006% likes-per-fan rate), while its 1.2 million Instagram followers had liked the video more than 36,000 times (a 3% likes-per-follower rate).
Everyone makes mistakes, but for social media teams, one wrong click can mean catastrophe. @USAirways experienced this yesterday when it responded to a customer complaint on Twitter with a pornographic image, quickly escalating into every social media manager’s worst nightmare.
Not only is this one of the most obscene social media #fails to date, but the marketers operating the airline’s Twitter handle left the post online for close to an hour. In the age of social media, it might as well have remained up there for a decade. Regardless of how or why this happened, this event immediately paints a picture of incompetence at US Airways, as well as the newly merged American Airlines brand.
It also indicates a lack of effective oversight and governance.
While details are still emerging, initial reports indicate that human error was the cause of the errant US Airways tweet, which likely means it was a copy and paste mistake or the image was saved incorrectly and selected from the wrong stream. In any case, basic controls could have prevented this brand disaster:
US Airways could have built a process where all outgoing posts that contain an image must be reviewed by a secondary reviewer or manager;
It could have segregated its social content library so that posts flagged for spam don’t appear for outgoing posts;
It could have leveraged technology that previews the full post and image before publishing.