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Social Media Trends and Innovations, 2017

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Social Media Trends and Innovations, 2017

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Today, there are 2.8 billion active social media users (+21% YoY), or 37% of the world’s population, compared to 3.8 billion people, or 50% of the world’s population, who are connected to the internet (source: according to GlobalWebIndex).
In 2016, social media continued to experience several changes that require marketers to take notice. The first transition concerns the multitude of social platforms and the rise of chatting apps. The second transition has been changes in mobile and video usage. The third transition involves the integration of social features into online commerce and content websites, or the development of “social core”.
The increasing penetration and use of mobile, has turned messaging apps into an important type of social networks. In 2016, 27% of the population accessed social media from mobile devices – 1.97 billion people. In 2017, 34% of the world’s population, or 2.55 billion people, use social media on their mobile phones (+30% YoY). Messaging apps are very popular among younger users, with Snapchat the most-used social media platform among 12 to 24-years-olds.

Today, there are 2.8 billion active social media users (+21% YoY), or 37% of the world’s population, compared to 3.8 billion people, or 50% of the world’s population, who are connected to the internet (source: according to GlobalWebIndex).
In 2016, social media continued to experience several changes that require marketers to take notice. The first transition concerns the multitude of social platforms and the rise of chatting apps. The second transition has been changes in mobile and video usage. The third transition involves the integration of social features into online commerce and content websites, or the development of “social core”.
The increasing penetration and use of mobile, has turned messaging apps into an important type of social networks. In 2016, 27% of the population accessed social media from mobile devices – 1.97 billion people. In 2017, 34% of the world’s population, or 2.55 billion people, use social media on their mobile phones (+30% YoY). Messaging apps are very popular among younger users, with Snapchat the most-used social media platform among 12 to 24-years-olds.

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Social Media Trends and Innovations, 2017

  1. 1. Social Media Trends & Innovations Hamutal Schieber | March 2017
  2. 2. Introduction • Social Media platforms have been changing the way we interact, network, and collaborate, for years now. More recently, they began to change the way we shop, consume and share content, and work. • With mobile penetration increasing, messaging apps have become the most important type of social networks. The importance of video content drives social networks towards development of video making, uploading, sharing and consuming solutions.
  3. 3. The Development of Social Media Social networks, desktop + mobile Social networks, desktop + mobile Chat apps Chat apps “Social cores” – social media is an enabler rather than a utility; user in the center Peer to Peer Brands Peer to Peer Brands ambiguity and transparency From channel specific to consumer specific: Trends in Social Media
  4. 4. Understanding Social Media to Develop a Social Core • It is important to understand the different characteristics of the platforms in order to understand what the consumer expects on each platform; and at the same time, to look beyond the platform to create a personal experience leveraging the unique benefits of each. • This presentation examines main platforms and behaviors in the “social media” sphere, as well as best practice in addressing each trend: WHO WHERE WHEN HOW WHY WHAT Users & Demographics Platforms Social media & the path to purchase Devices and usage What consumers are looking for Content and behavior trends
  5. 5. The Social Media Landscape, 2017 Globally, there are 2.8 billion active social media users (+21% YoY), or 37% of the world’s population, according to GlobalWebIndex, compared to 3.8 billion people, or 50% of the world’s population, who are connected to the internet. Source: WeAreSocial, Hootsuite, Jan. 2017
  6. 6. -100% -50% 0% 50% 100% 150% 0 200 400 600 800 1000 1200 1400 1600 1800 2000 Monthly Active Users (Million) Nov. 2015 Jan. 2017 % CAGR Leading Social Networks Source: WeAreSocial, Jan. 2016, Jan. 2017 | *Tumblr data is WeAreSocial estimate-based so this figure may not be accurate. Whatsapp Feb. 2017 stats according to Facebook: 1.2 billion MAU As this graph demonstrates, Facebook, Instagram and Tumblr*, achieved both a solid base and an impressive growth between Nov. 2015 and Jan. 2017.
  7. 7. Chat Apps, Monthly Active Users (millions), Nov. 2015 vs Jan 2017 900 700 860 650 300 200 249 211 1200 1000 877 846 399 399 249 217 WHATSAPP FACEBOOK MESSENGER QQ MOBILE WECHAT SKYPE SNAPCHAT VIBER LINE Nov. 2015 Jan. 2017 +30% +43% +100% Among messaging apps, Snapchat, Messenger, WhatsApp and WeChat achieved the fastest growth between Nov. 2015 and Jan/Feb 2017. Leading Social Networks | Messaging Apps WhatsApp Feb. 2017 stats according to Facebook +33%
  8. 8. Social Networks | Demographics • The most active social networkers are 18-29 year old users; participation decreases with age. • With a 72% adoption rate, Snapchat is the most-used social media platform among 12 to 24-years-olds. • As Facebook seeks to engage a younger audience, it may either try to continue and leverage Instagram as a Snapchat rival, maybe even integrating Messenger into Instagram, instead of the other way around. 0% 20% 40% 60% 80% 100% 18-29 30-49 50-64 65+ Social Networks Use by Age Group, Pew Research Center, Nov. 2016 38% 35% 30% 30% 29% 29% 29% 25% Snapchat Instagram Twitter Facebook Messenger Youtube Linkedin Whatsapp Facebook % of engagers/contributors who are 16 - 24 years old, source: GlobalWebIndex Q3 2016
  9. 9. Major Trends Trend Description Mobile • In 2016, 27% of the population accessed social media from mobile devices – 1.97 billion people. • In 2017, 34% of the world’s population, or 2.55 billion people, use social media on their mobile phones (+30% YoY). Video • Brightcove’s “The Science of Social Video”, a survey of 5,500 consumers in the UK, France, Germany, US and Australia, found that consumers were spending an average of 6 hours a week watching video content on social media networks. AR/VR • Virtual reality (VR) is a growing technology, enabled by more affordable devices that were not available in the past. With 360 degree video making, VR may become integral to marketers’ strategies within a few years. • Facebook sees VR as a strategic, but more long term investment, as it keeps leveraging the Oculus acquisition; however, it has acquired an Augmented Reality (AR) company and might expand its abilities there. Commerce • GlobalWebIndex’s research shows that over 30% of US adult Facebook users turn to social media when they are researching products online. With 8 in 10 US Facebookers purchasing products online each month, there’s clearly a huge opportunity to bring some of these purchases inside social networks. Wearables • Cashing on the “internet of things” growth, especially in wearables, Snap launched “spectacles” in 2016, which record videos to be uploaded to its Memories section. At the same time, wearable companies – such as Nike, Fitbit – integrate social networking, but without specific focus on this component. Voice • Following text, emoji and video, voice might be the next trend, with apps such as Bubbly
  10. 10. Major Trends | Mobile • Messaging apps are becoming more valuable due to the rise in mobile – esp. in younger people; companies engage consumers by giving them tools – such as emoji keyboard. • Dunkin’ Donuts: a special emoji keyboard for Valentine’s Day 2017; suitable for all chatting platforms. GlobalWebIndex’s Q1, Q2 & Q3 2016 online research
  11. 11. Major Trends | Mobile • Schieber Research believes that apps such as Slack (which has a mobile version as well) – that provide a “one stop shop” on one hand, but enable ultra-specification on the other, will be the future of messaging apps. • Slack was intended for use as an internal business network, but people started using it for personal use, as well. • In October, 2016, the company reported that it boasts 4 million Daily Active Users, or 5.8 Million Weekly Active Users. This is a far smaller number than the aforementioned platforms; however, the integration with various apps, the integration of bots for service, and the fact that 1.25 million users (more than 25%) are paying users – lead us to believe that Slack is the rising star of social media.
  12. 12. Major Trends | Video • Brightcove’s “The Science of Social Video” survey of 5,500 consumers in the UK, France, Germany, US and Australia, found that consumers were spending an average of six hours a week watching video content on social media networks alone. Two-thirds (67%) said that this amount had increased in the last twelve months – one fifth said considerably so – and three fifths expected it would continue rising over the next year. Source: GlobalWebIndex Q3 2016 | Base: Internet Users aged 16-64 • The research also pointed to a connection between watching a video on social media and their purchasing decision-making process: nearly half (46%) said they had actually made a purchase as a result of watching a branded video on social media, while another third (32%) had considered doing so. • GlobalWebIndex Q3 2016 data shows that right now, only 20% of Facebookers upload videos to the site, but on Snapchat a third are sharing videos and, on WhatsApp, the figure reaches nearly 50%.
  13. 13. Major Trends | Video • Live + 360 degree video are the latest trends in social media video, delivering a rich real-time and personalized experience to video, and bridging the physical world with the digital world. • Google is a leader in 360 degree video, as a result of 2 assets owned by the company: Youtube 360 videos delivering content – and Google Cardboard, delivering the watching device and providing an immersive experience. Google even developed 360 cameras in collaboration with GoPro. • However, in 2016, live video garnered more attention than 360 degree videos: This segment is led by Facebook. Source: GlobalWebIndex Q3 2016 | Base: Internet Users aged 16-64
  14. 14. Major Trends | Video | Facebook • To make it easier to find and watch videos, Facebook added a tab at the bottom of the Facebook app with top videos and recommendations. • Facebook reported New Year's Eve its biggest live moment ever. The company is experimenting with live 360 video, audio- only live for people with slower connections, and live face masks and more camera effects. • On its Q4 2016 conference call, the company said it is looking for ways to grow the ecosystem of video content on Facebook to turn it into a place for interesting and relevant video content from professional creators as well as from friends.
  15. 15. Major Trends | Video | Facebook • Facebook is using Facebook.com, Instagram, Messenger and Whatsapp, to respond to trends in mobile and video demand on the one hand – and to competitors, first and foremost Snap, on the other hand. • Lenses, “stories”, limited time – these Snapchat-like features were integrated into Instagram with “Instagram Stories” (boasting 150 million monthly active users just 5 months after the launch), and more recently into Messenger’s “day in a life” feature, enabling users to upload photos/ videos and define reach and durability. • In light of its recent acquisitions, the company will experiment in augmented reality, on top of its VR strategy – further strengthening the company’s lens capabilities.
  16. 16. Monetization Strategies • Social media platforms are building towards monetizing their large user base, integrating advertising, marketing tools, service and finally, commerce. • Facebook’s $ 8.8 billion revenue is almost entirely composed of advertising- derived revenue, with other types of payments generally decreasing. Total revenue grew by 51% YoY and advertising revenue was up 53% to $8.6 billion.
  17. 17. Monetization Strategies | Marketing • Social media platforms allow marketers to create tools for use in the app, advertise and use proprietary data to learn about users. • It is important for marketers to adapt to the different characteristics and main user motivations of each platform, so as not to be considered as a distraction. Using Instagram Stories to reveal new products, designs Instagram Starbucks launched a Keyboard for mobile – its first emoji app Messaging Apps Using the sponsored lens format; promoting causes and launching initiatives SnapChat A strategic partnership with WeChat’s holder, co-creating a new social gifting/ in store payment WeChat Starbucks uses a mix of social media channels to convey different messages, tailored to the demographics and uses of the platform. As a result, the company enjoys a high rate of engagement
  18. 18. Monetization Strategies | Marketing • According to Facebook, premium fashion brand Michael Kors collaborated with Facebook, as well as Facebook Marketing Partner SocialCode, to develop a full-funnel campaign. Using a combination of link ads and carousel ads, the fashion brand drove traffic to its physical stores, and then used offline conversions to measure the impact its ads had there. • Results: 33% increase in attributed return on ad spend; 31% increase in attributed transactions; 25% increase in attributed revenue Source: Facebook
  19. 19. Monetization Strategies | Marketing | Snapchat • Snap, which recently completed its IPO, reported a 2016 revenue of $ 404.5 Million with $ 514.6 million loss, compared to 2015’s $ 58.7 million revenue and $ 372.9 million loss. • The company’s revenue model is based on advertising (98%) as well as 3rd party content. the company boasts 158 million daily active users with 2.5 billion daily snaps. • The company offers “geofilters” – self designed filters that are connected to a specific location and are free for “communities” but carry a fee for businesses. L’Oreal offered a Valentines Day lens with bright lipsticks. The company launched Snapchat Specs – connected spectacles that are sold online (after being sold exclusively through vending machines) and Snapcash payment options.
  20. 20. Monetization Strategies | Marketing | Snapchat • Sports drinks brand Gatorade found success with the Sponsored Lens in Feb. 2016, featuring Serena Williams featuring a lens which let users experience a virtual dumping of the drink. As a result, Gatorade received 165 million views, and saw an 8 point increase in purchasing intent from those who engaged with the Lens. • In August 2016, the brand offered a tennis Snapchat game, with Williams’ pixelized character. In May 2016, for Cinco de Mayo, Taco Bell launched the most-viewed Snapchat lens ever. The lens allowed users to turn their face into a taco. It resulted in 224 million views in one day, according to AdWeek.
  21. 21. Monetization Strategies | Commerce • GlobalWebIndex’s research shows that over 30% of US adult Facebook users turn to social media when they are researching products online. With 8 in 10 US Facebookers purchasing products online each month, there’s clearly a huge opportunity to bring some of these purchases inside social networks. • At the same time, online and mobile commerce websites integrate social-media components – and physical stores integrate to social media (e.g., through dressing room photo sharing enablement via smart mirrors)
  22. 22. Case Studies: “Social Core” “Collaboration economy” websites are usually based on social networking components. But beyond that, many companies begin integrating social components such as peer to peer chats and recommendations and UGC based content. Airbnb’s success is largely attributed to the successful creation of an online community, built on the mutual interest in “collaboration economy”. The community shares ideas and tips from hosts and guests, and provide inspiration. The company even offers specific subject-related groups – and encourages face to face meetups. On November 2015, TripAdvisor launched a “Travel Timeline” feature for its mobile app that helps travelers conveniently log and share experiences from their trips. Once activated, the feature automatically creates a timeline of the places travelers have visited and the photos they’ve taken at each location, which can be viewed in chronological order or as a route on a map. Whirlpool leverages social media content on a website, EveryDayCare. It is based on 44 thousand pieces of UGC, and aimed at positioning the brand through emotions rather than product benefits. The company gained 6.6% sales lift (compared to 4.9% for the category) and emotional engagement improved significantly.
  23. 23. Case Studies: “Social Core” Social networks are becoming more mission-specific, catering to users’ behaviors on the one hand and to unmet needs on the other hand. Facebook launched a job search tool and a recommendation tool. After writing a post asking for a recommendation, Facebook changes it to a ‘recommendation’. As soon as other users react to the post, Facebook recognizes the business and displays it on a map, as well as its rank and reviews. Emerj has developed an on-demand mentorship app designed to connect women with relevant mentors in their organizations in order to increase their employees’ engagement, satisfaction, and retention levels.
  24. 24. Summary and Recommendations • Social Media has changed our everyday lives. We turn to social platforms for information, content sharing, buying/ selling of products, and brand communication. • We expect social commerce to rise in the next 2 years, as a result of consumers’ current purchase behaviors and the need for monetizing the user base. • When marketing on social media, make sure to follow the next principles: – Relevancy and consumer focus – aimed at providing value, rather than being perceived as a nuisance – Building platform-appropriate tools and communications, according to the destination’s consumer motivations – Understanding the value of social media pre-purchase research in order to offer information and service integration
  25. 25. Thank You! The research was conducted by: Hamutal Schieber Schieber Research | Market Research & Competitive Intelligence www.researchci.com | hamutal@researchci.com More articles and reports on Carmelon Digital Marketing website: http://www.carmelon-digital.com

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