An Open Letter To Mark Zuckerberg

Nate Elliott

Mr. Zuckerberg:

Facebook is failing marketers.

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.

 

Marketers say 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.

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New iPad Air And iPad Mini Will Maintain Apple's Premium Positioning In The Increasingly Competitive Tablet Market

Thomas Husson

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.

Competition is heating up

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The Mobile War Is Not Over

Thomas Husson

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.

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Beyond Push Notifications: Mobile As The New Holy Grail Of One-To-One Marketing?

Thomas Husson

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.

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Seven Steps To A Needs-Based Marketing Strategy

Anthony Mullen

Brands deals with human needs and wants. Leo Burnett, the advertising executive, said: "The work of an advertising agency is warmly and immediately human. It deals with human needs, wants, dreams, and hopes." Smart brands know not to initially focus on what they have to sell but rather on how it meets consumers' needs. If you can address a strong consumer need, you will get those consumers to act. If you can get them to act, then you have opened an all-important channel of dialogue.

The fulfillment of consumer needs, however, is not always a linear hierarchic approach as proposed by Maslow and effectively debunked by Forrester analyst James McQuivey in his book Digital Disruption. Human needs take place simultaneously and are fuelled by a mix of short- and long-term motivations — some conscious and some unconscious. As a student, I would sometimes forgo food on a Friday so I could afford to go to a concert that night; or consider a Spanish couple postponing the short-term comfort of a much-needed upgrade to their central heating so they can put their child through the next year of college. 

The pyramid diagram below shows how the foundation of this needs-based thinking is built from the ground up, from customer descriptions through to the technology and KPIs applied.

 

 

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Where in the Customer Life Cycle do your audiences use social media?

Nate Elliott

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's Acquisition Of Xtify Continues The Mobile Marketing Consolidation Streak

Jennifer Wise

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.
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Forrester Groundswell Awards Update

Nate Elliott

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.

Great Content Is Not Enough

Ryan Skinner

There’s a serious, but neglected, problem at the heart of content marketing.

Marketers and agencies have invested large sums to create quality content, but – in many cases – it’s not getting discovered. Audiences are neither finding nor sharing it. It’s not going viral. It’s not going anywhere. One CEO at a company that helps with distribution told me how he finds new clients: He looks for brands on YouTube with great videos but miserable viewing numbers. “Not hard at all,” he said.

How did visibility become such a problem?

Agencies, bloggers, and search experts counsel marketers to publish truly great content, regularly, to win search rankings and social shares and thus draw traffic. For many marketers, however, that organic discovery isn’t happening as quickly or reliably as they need.

Outgoing Content Marketer of the Year Joe Chernov (VP of marketing at Kinvey, and previously VP – content marketing at Eloqua) told me:

Marketers always ask me how to make more or better content, and it’s almost always the wrong question. The right question is: “How do I get my content in front of the right people?”

That will include paid placement and amplification, but it turns out this kind of promotion is only one part of a multiphase approach.

I just published a report on distribution of branded content. A few remarkable findings:

  • Brands can actually step down content production and step up distribution to get better results.
  • An ecosystem of vendors have cropped up to help marketers drive distribution of branded content.
  • The most effective promotions often come from doubling-down on past successes.
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The Social Technographics Score helps marketers create better social strategies

Nate Elliott

We firmly believe that the first step in building a successful social program is to understand your audience’s social behaviors and preferences.

Since 2007, Forrester’s Social Technographics® ladder has helped marketers understand how social their audiences are, and in which social behaviors those audiences engage. But social media adoption has matured, and today the vast majority of online users engage with social tools. For marketers, the question is no longer whether their customers use social media, but rather how best to use social media to interact with those customers.

So we decided it was time to develop a new framework to help marketers analyze people’s evolving social behaviors and benefit from this evolution. Today, Forrester is introducing a new model — called the Social Technographics Score — that:

  • Focuses on commercial social behaviors. Many surveys reveal the social behaviors in which audiences engage but make no distinction between peoples’ social interactions with friends and their social interactions with companies. In contrast, our new Social Technographics Score is based on how audiences interact with and talk about companies, brands, and products.
  • Helps marketers choose among social strategies. Most models for evaluating audiences’ social usage tell marketers about their customers’ behaviors but don’t tell marketers what to do in response to those behaviors. In contrast, our new Social Technographics Score measures where in the customer life cycle audiences are most likely to use social tools.
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