Our recent report on why Facebook is failing marketers has caused quite a bit of conversation — with some supporting our findings and others disputing them — and we think that’s healthy. We fully stand behind our data and our conclusions, and we welcome the chance to further discuss what’s working and what’s not working in social media. Conversations like these can only push the industry forward and help all social marketers and sites become more successful.
In particular, we wanted to address a few common questions people are asking about our research:
Facebook’s score didn’t look that low. Are they really failing marketers? Facebook offers marketers access to the largest audience in media history and it knows a remarkable amount about each of its users and their affinities. By all rights, Facebook should be driving significantly more value for marketers than other sites and channels — but according to our survey, they’re not. Forrester’s Data Center of Excellence has looked at this data many different times, through many different lenses, and every view of the data supports this conclusion.
Since the introduction of the DVR more than a decade ago, consumers have learned they don't have to conform their lives to broadcast programmers' schedules in order to watch their favorite TV shows.
Along come online sources like HuluPlus, or the network's own websites promise even more convenience: Get any episode of any show with no need to remember to record it. But adoption is hampered by the awkward viewing experience of the cramped screens of laptops, tablets, and smartphones.
Welcome to TV viewing in the Age of the Customer. Consumers want their favorite shows when they want them, on their preferred device, with little or no effort on their part.
Linear TV, DVRs and today's online viewing experience all fail on at least one of these dimensions. Viewers increasingly cobble together a mix of sources and devices to create this level of convenience, and each of these players vies to capture more of viewers' time by improving its offering.
In my new report, "How Online Video Will Challenge DVRs' Role," I delve into how these two sources of video entertainment vie to meet consumers' increasing expectations. DVRs have the advantage of incumbency, while online viewing offers greater flexibility.
Here’s your fortnightly round-up of the best of the best stuff online for marketers who think about content. (For more information about what the Content Marketing Fortnight is, see my intro from the first one. And, if you want to get this curated newsletter in your inbox every other week, send me a mail.)
Content marketing’s shot heard round the world
Nothing affirms a new approach to marketing more than the big-ticket acquisition of a technology company enabling that approach. Thus Oracle’s acquisition of content marketing software platform Compendium lit up the content marketing world this month. What will come of this? For one, vendors in and around the content marketing space will try to add Compendium-like features (if they don’t already have them). And the “content is a business asset” argument will get a big boost.
I know this statement sounds remarkable, perhaps even unbelievable. After all, you offer marketers access to the largest audience in media history and you know a remarkable amount about each of your users. As a result nearly every large company now markets on Facebook. Last year your company collected more than $4 billion in advertising revenues.
But while lots of marketers spend lots of money on Facebook today, relatively few find success. In August, Forrester surveyed 395 marketers and eBusiness executives at large companies across the US, Canada and the UK — and these executives told us that Facebook creates less business value than any other digital marketing opportunity.
Why are business leaders less satisfied with Facebook than with any other digital tool? We believe there are two reasons.
First, your company focuses too little on the thing marketers want most: driving genuine engagement between companies and their customers. Your sales materials tease marketers with the promise that you’ll help them create such connections. But in reality, you rarely do. Everyone who clicks the like button on a brand’s Facebook page volunteers to receive that brand’s messages — but on average, you only show each brand’s posts to 16% of its fans. And while your company upgrades its advertising tools and offerings monthly or more, you’ve done little in the past 18 months to improve your unloved branded page format or the tools that marketers use to manage and measure those pages.
As it did for the iPhone 5S and 5C, Apple has tweaked its product portfolio with two new products to maintain premium positioning in an increasingly competitive tablet market. Both the iPad mini 2 (starting at $399) with Retina display and the iPad Air (starting at $499), which is thinner (43% thinner than the iPad 4), lighter, and faster (with a super-fast A7 chip) are great additions to the iPad product portfolio and come with new colors and covers. As always with Apple, expectations on systematic breakthrough hardware innovations are irrational. Apple is good at inventing new products (e.g., iPod, iPhone, or iPad) and at maximizing profitability of its product range over time through software innovations and clever marketing. Yes, at some point, the company will need to disrupt a new market once again, but today’s announcement is really about making sure it maintains the premium brand experience for the holiday season when competition is heating up — not just for tablets but also for the amazing new line of Mac products.
Let’s step back to January 2007. Do you remember what your job was at that time? I was already an industry analyst covering mobility, and at that time, the space was less fascinating to cover. Back in January 2007, Google had acquired YouTube for $1.65 billion only a couple of months before. Android did not exist. The iPhone did not exist. Twitter did not exist. Facebook was only a couple of months old as an open public website. Nokia had a market valuation of around $120 billion, and its share of the global smartphone market was above 45%. BlackBerry – then the leader in enterprise mobility solutions – had initiated a move in the consumer space with the BlackBerry Pearl.
Less than seven years later, Google has activated more than 1 billion Android devices, and Apple will soon pass the 700 million iOS devices mark. YouTube now has more than one billion users globally and generates 40% of its traffic from mobile devices. Facebook has 1.2 billion users and generates 41% of its ad revenues from smartphones and tablets (it could even reach 50% in Q3 2013; Facebook discloses its financial results on October 30). Twitter has more than 230 million users and generates more than 70% of its revenue via mobile.
Push notifications make the most of mobile marketing’s unique attributes: intimacy, immediacy, and context. When consumers opt in to receive push notifications, it means they trust you to the point of giving you permission to contact them on their most personal devices. If your messages are not relevant, you will lose your best customers.
Our research shows that consumers who receive push notifications are also the heaviest app users. However, to avoid being spammed with irrelevant messages, consumers increasingly want to be in control, setting preferences on the types of messages they want to receive and when they want to receive them.
While push notifications enable better engagement, the challenge for marketers will be to think beyond just push notifications for smartphone apps. Push notifications already extend messaging to other connected devices. How will push notifications complement email, SMS, and in-app messaging? How will performance from various direct marketing channels evolve?
To differentiate, marketers will have to integrate push into cross-channel and CRM platforms and integrate mobile as a variable of their customer base. Marketing vendors will have to add new messaging platforms, like push notifications, into their core offerings, pushing for another wave of consolidation highlighted by the recent acquisition of Xtify by IBM.
You know by now that studying your audience's social behaviors is the first step in building a great social strategy. But most models for evaluating audiences’ social usage simply tell marketers how much their customers are using social -- rather than examining how commercial those social behaviors are, or what marketers should do in response to those behaviors.
To succeed in social media, we think you should map your audience's behavior to the customer life cycle. Why? Find out in our video below:
IBM is diving head first into mobile — yesterday it announced the acquisition of a leading mobile messaging vendor Xtifiy, and it even released its IBM Institute for Business Value study showcasing the value of mobile the same day.
This acquisition adds to IBM’s Smarter Commerce offering and makes its MobileFirst portfolio more robust through enhanced one-to-one communication and customer relevancy. But what does it mean for marketers?
In the short term:
IBM keeps moving towards a one-stop shop. We like IBM’s solutions – its MobileFirst solution was even ranked a Leader in our Forrester Wave™: Enterprise Mobility Services, Q1 2013. So, a strong partner adding a mobile messaging pure play to the mix benefits everyone in the short term: Xtify increases the scale of its offering, IBM can pitch an integrated solution, and customers get to reduce their procurement load. And combine Xtify’s messaging with IBM’s soon-to-be-launched Presence Zones and IBM has an especially attractive retail suite.
This week, our team finished judging the 2013 Forrester Groundswell Awards and notified the winners. If your entry was selected as a winner in any of our 11 B2C, B2B, or B2E categories, you've heard from us by now.
If not, I want to still thank you for entering this year's awards. We know the time and effort that companies put into their entries -- and we want you to know that gave every submission full consideration. We received more than 140 entries this year -- including many of excellent quality -- and it was often hard to choose the best in each category. You made the judges' job difficult, and for that we applaud you.
Want to know who won this year's awards? Stay tuned: We'll be announcing the awards both on this blog and at our 2013 Forrester eBusiness Forum on November 5.