1. THE SHIFT TO MUTUALISM BETWEEN
BUSINESS AND USERS
At their inception, traditional social media channels such as
Facebook and Twitter gained wild, immediate popularity because
they tapped into the basic human need to connect with other people.
Facebook became the virtual backyard barbeque, road trip and
reunion, and by 2009 social media was a fixture in daily life.

2. Initially, sharing photos, mundane stories, unsolicited opinions or
milestone life events with friends, family or colleagues was so appealing
in part because it could be done spontaneously, with few controls and
without excessive intrusion from advertising or content we didn’t choose
to see. This spawned a second wave of social media channels such
as Vine, Pinterest and Instagram. These offered something for almost
everyone, and consumers relished the ease and speed with which they
could connect with others.
It was all unprecedented and redefined how
humans connect.
But just as with any new medium, platform owners and businesses
quickly began to look for ways to monetize, selling ads, controlling more
and more of who saw what, and gathering precious consumer data. They
began to lose sight of users and what drew them to social media in the
first place, and users began to seek newer, more private messaging apps
such as Snapchat, Kik and Facebook Messenger.
www.sparksgrove.com
The New Era of Social Media
Page 2
Key Takeaways
Social media’s success comes foremost from the human need to connect
The human need to connect is as strong as ever, and even increasing in this digital age. Social media enabled
humans to connect at unprecedented scale and is now fixed in daily life.
Brands clumsily elbowed into social networks and users soon looked for another option
As social media matured, brands pushed promotions, gated content, sweepstakes and gimmicks at the cost of
user experience and need.
Private messaging app growth is outpacing traditional social networks
Messaging apps provide simple, authentic and easy-to-use platforms that have seen rapid adoption in three
years, overtaking traditional social media in 2015 in terms of number of users.
Private messaging apps can be mutually beneficial to both users and brands
Brands need to retool their social media strategies and pivot toward messaging apps that provide
monetization opportunities without alienating users.

3. Because of this we are experiencing a shift,
a rebalancing of the social landscape that
effectively serves the platforms and brands
that are present on them, as well as the users
themselves. This mutualism has long been
desired, but never really attained. These
messaging apps are evolving quickly, and as
Facebook, Microsoft and Apple continue to
innovate in this space, we’re in an era of change
unlike any experienced since Apple introduced
the iOS platform in 2008.
ORIGINS OF THE SHIFT
Brands made the mistake of applying to these
new social channels the same strategies and
tactics that had worked for them in non-social
channels, such as contests and gimmicks
that measured success only on the number of
followers chummed in. Before long, they were
using a heavy-handed, “push” approach instead
of more graceful and congruent strategies to earn
their way into customers’ lives via social media.
At the same time, social platforms began
to accommodate the brands as they chased
revenue, building algorithms to support in-feed
promotional content and offers. But users quickly
tuned in to the fact that social media platforms
were mining extensive amounts of personal data
and selling it back to the very brands that were
now interrupting their news feed.
This naturally resulted in an intense disconnect
between users, advertisers and platforms.
WHAT ALLOWED SOCIAL
MEDIA TO BECOME PART OF
OUR EVERYDAY LIVES
Authentic: Real one-to-one, one-to-many
conversations that weren’t weighted or biased
by businesses, corporate speak or advertising
Fun and spontaneous: Easy, real-time
communication, with the ability to share life
events from anywhere at any moment
Simple and intuitive: Easy to use, desktop-
friendly features and interfaces that enabled
everyone to take part
Unobtrusive: Early phase social platforms
enabled conversations and took a backseat as
people connected with each other
www.sparksgrove.com
The New Era of Social Media
Page 3

4. MONETIZATION AND ROI-
RELATED ACTIVITIES BY
PLATFORMS AND BRANDS
Marketing platform plays: Brands didn’t
distinguish social media channels from more
traditional platforms, and bulldozed into the
space rather than earning their way in
Retrofitted mobile: With its origins as a
desktop application, Facebook hastily poured
desktop features into mobile, resulting in
feature fatigue and confusing user experience
Ads and sweeps: In-feed paid promotions
and custom applications were designed to
increase number of followers rather than
actually resonating with users
Data-driven advertising: Platforms mine
user data and deploy algorithmic controls to
attract advertisers
THE RISE OF PRIVATE MESSAGING
PLATFORMS
As recently as 2014 we began to see signals
that these “dark” social messaging apps were
emerging as the next wave of social as evidenced
by Facebook acquiring WhatsApp for $19 billion
dollars and an unsuccessful attempt by Facebook
to acquire Snapchat for $3 billion dollars in cash.
Then, suddenly, a new milestone emerged with
the number of monthly active users of these
messsenger apps eclipsing the number of monthly
active users on traditional “light” social media
networks such as Facebook, Twitter and Instagram.
The result of these incongruent dynamics:
a creeping polarization between platform-
brand collaborators and users.
2015201420132012
3500
500
2500
1500
Messaging apps have surpassed social networks
Monthly active users (millions) for top four
social networks and messaging apps
Big four messaging apps1
Big four social networking apps2
Source, BI Intelligence*
1. WhatsApp, Facebook Messenger, WeChat, and Viber
2. Facebook, Twitter, LinkedIn, and Instagram
This is creating an exciting shift in the social
space, one which highlights what made social
media so appealing with users initially:
The ability for humans to connect with
other humans authentically—free
from control and brand messaging
being foisted upon them.
www.sparksgrove.com
The New Era of Social Media
Page 4

5. A NEW OPPORTUNITY FOR MUTUALISM
Ease and convenience
App-in-app and bot-supported experiences means
users don’t have to install and shuffle through
multiple, disparate native apps, and can make
purchases across a host of brands within
a single messaging app.
Privacy
Chat-based conversations keep dialogue out
of more visible social forums—maintaining a
sense of privacy and at least the perception that
personal data and behavioral data is not being
tracked by the platforms. This is much more
palatable to users across multiple segments.
For brands, reconnecting with users on these new “dark” social platforms is entirely possible and should
be considered as part of any complete marketing strategy. Within this common space are sets of features
that users, brands and the platforms themselves can find mutually beneficial:
Social /Business
Needs
Human Needs
Pull vs. push ads
Empowers users to opt in and control brand
promotions. More cost effective for brands
because users who do opt in are more receptive
and more prone to convert.
One to a few close friends
Private, SMS-based conversations that are
authentic and temporary are the core attributes
of private messaging apps. Because the user’s
network is being pulled from their smartphone
address book, their connections are inherently
more intimate. Brands are monetizing this by
offering unique games, filters, unique features/
content, emojis and stickers that can be used to
enhance users’ private conversations.
Messaging Apps
• Pull vs. Push Ads
• One to a Few Close Friends
• Ease and Convenience
• Privacy
• Marketing Platform
• Mobile
• Ads and Sweeps
• Data-Driven Advertising
• Authentic
• Fun/Spontaneous
• Simple/Convenient
• Unobtrusive

6. WHY PRIVATE MESSAGING APPS
ARE GAINING WIDE ACCEPTANCE
They allow brands to be present to users in a
harmonious way, allowing users to opt in on their
own terms. This inherently connects brands with
consumers who are actively interested in their product
or service, and thus more prone to convert. We’re also
seeing monetization features such as games,
bot assistants, pull advertising, stickers, filters,
emojis and payment platforms which are much more
congruent with user expectations—and which are
proving to be a repeatable source of ROI for brands and
the platforms themselves.
Social media is finally poised to serve human needs
while also helping businesses achieve clear ROI in
these social applications.
Implication for brands: private
messaging is the new frontier and you
should be there now
Although the number of brands using messaging
apps in the U.S. lags behind other markets such as
Asia, the number of users are growing rapidly and it’s
important to take an aggressive stance to stay ahead
of the curve and ready with a strategy. Many brands
are actively using these platforms and seeing results
by responding and considering them as part of their
overall mix of social media programs.
ROI Use Case: Facebook Messenger app utilizes
AI bot assistants that enable users to purchase
products directly from 1-800 Flowers and Urban
Outfitters without leaving the app. Brands benefit
from activating a new sales channel, while Facebook
earns transactional fees from the brands. Human
needs are met with simple, user-friendly SMS
interfaces that allow users to engage and purchase
with real people or through bots without having to
navigate multiple apps.
The New Era of Social Media
Page 6www.sparksgrove.com

7. Not all of messaging apps are created equal and
companies must understand how they work and
which ones best align to their business objectives.
Pilot programs can provide low risk, real-world
test cases to help pinpoint which apps are best
suited for a given brand.
In short, businesses can either be
ready or be lost trying to catch up in
a dynamic, fast-changing space that
can deliver real brand engagement
and measurable revenue for brands
that are prepared to use these apps
as a positive, strategic extension of
their brand.
ROI Use Case: Example of Snapchat “lenses” or filters
that can be purchased by brands to help promote
products. In this case, “X-Men: Apocalypse” takes
over Snapchat lenses to support a movie release.
Sponsoring a lens can cost $450,000-$750,000. In
return brands can reach a potential audience of 100+
million daily users aged 13 – 34.
ROI Use Case: Example of a sticker pack (emojis)
offered to Line users. These are often used by
brands to foster awareness and create additional
revenue streams. Animated giphy packs can also be
purchased on Line. In 2014, Line made more than
$10 million per month from sticker revenue.
The New Era of Social Media
Page 7www.sparksgrove.com

8. Name WhatsApp
Facebook
Messenger
WeChat Line Kik Snapchat Slack
Key
Differentiators
End-to-end
encryption,
privacy
Rapidly maturing,
high number
of active users,
leveraging
chat bots and
app-within-app
functionality
Most
sophisticated app
in which western
apps are trying
to emulate
Successfully
transcends both
digital to brick
and mortar,
very effective
merchandising
Heavy use of chat
bots, dominant
with U.S. teens
Photo and video
based, self-
destructing
messaging rapidly
gaining adoption
in the U.S.
Office / virtual
team
communication
app that is
expected to
crossover into
more mainstream
usage
Brand
Partners
• Clarks
• Dutch Airlines
• KLM
• Hellman’s
Mayo
• Colgate
• Absolut
• Hyatt
• Uber
• KLM
• 1-800-Flowers.
com
• Burberry
• Starbucks
• Pepsi
• Levi’s
• McDonald’s
• Samsonite
• Pizza Hut
• KFC
• Hello Kitty
• The Walking
Dead
• Paul
McCartney
• Disney
• Marvel Comics
• H&M
• Sephora
• McDonald’s
• The Weather
Channel
• Vans
• Skullcandy
• MTV
• Washington
Post
• Everlane
• General Electric
• McDonald’s
• Taco Bell
• Sour Patch Kids
• NBA
• Acura
• Heineken
• HBO
• Taco Bell (in
development)
Number of
Monthly Active
Users (as of
Q2 2016)
The world of private messaging is changing quickly, an ongoing footrace to innovate, draw users and take advantage of monetization
opportunities. This chart provides a snapshot of apps that brands should be watching now and in coming months:
KEY PLAYERS IN THE
PRIVATE MESSAGING SPACE
(DAILYUSERS)
Page 8www.sparksgrove.com

9. About Sparks Grove
Writer
Shane Weaver
Senior Manager –
Insights & Analytics
shane.weaver@sparksgrove.com
Contributor
Sharon Ben-Dov
Senior Manager –
Content & Communications
sharon.bendov@sparksgrove.com
ABOUT THE SPARKS GROVE
DIGITAL STRATEGY TEAM
We believe that technology and digital tools are
disrupting businesses by enabling new experiences
inside and outside the enterprise. Our digital strategy
group helps businesses embrace this change to
increase efficiency, improve satisfaction, deepen
engagement, expand markets and ultimately transform
them in being or becoming digital enterprises.
SOURCES
*McKitterick, Will. BI Intelligence. “Messaging Apps Are Now Bigger Than Social Networks” www.businessinsider.com, June 2016

10. We design
human experiences
to solve
business challenges.
About Sparks Grove
If you’re interested in learning more about the ways that
Sparks Grove can help you achieve growth through experience design,
please visit us at sparksgrove.com or call us at +1 404 961 9900.
Sparks Grove is the experience design division of
North Highland, a global management consultancy
that delivers unique value, relevant big ideas and
strategic business capabilities to clients around
the world. North Highland solves complex business
problems for clients in multiple industries through
an integrated approach and specialty services via
Sparks Grove and our Consulting, Data and Analytics,
and Managed Services divisions.
At Sparks Grove, we apply design thinking to plan,
create and execute experiences across the entire
experience chain. We use insight, foresight, strategy,
design and development to transform businesses into
more human-centered, purpose-driven organizations.
Page 10www.sparksgrove.com