Tag Archives: revenues

Is OTT Messaging The New Social?

We’ve all become increasingly familiar with the tragic tales of people going for a job, standing for a public position or simply claiming to be off sick, only to be outed by their Facebook posts which reveal their failings, sins and indiscretions to the world.

We live in increasingly glass houses, where our lives are (in the finest tradition of The Truman Show) broadcast live to the world. Even if we avoid posting selfies in flagrante delicto, we can still end up tagged in photos that unflatter us. In the process of sharing stuff with our friends, we’re more and more likely to end up sharing with Google and its few billion acquaintances as well.

We’ve tended to view this is as an inevitable social transition, as the archaic notion of privacy is abandoned in favour of an always-connected “what happens in Vegas … now stays online forever” transparency paradigm. Yes, today’s employers may tut-tut and refuse to hire those whose indiscretions are blatantly displayed online; but tomorrow’s employers, their own failings similarly emblazoned across social networks, are likely to be more tolerant (or so we hope).

What we’re now seeing, however, is a move away from open social networks to the closed user spaces of OTT* messaging applications, especially amongst teens and young adults who are tired of leaving a digital trail which can be seen by parents and employers and by which they can be judged.

* These messaging applications are called OTT (Over The Top), to indicate that they sit on top of the mobile infrastructure, using internet data connectivity rather than the cellular messaging facility, usually at a much lower pricepoint

The move to OTT messaging is problematic for marketers, however, for several reasons:

1. No Clear Leaders

As ReadWrite notes:

“The messaging landscape is fragmented. Teenagers are ditching social media to chat on services like WhatsApp, Snapchat, WeChat and KakaoTalk. Apps like Kik, Line and Tango are other popular SMS replacements, [along with] Google Hangouts, Facebook Messenger, GroupMe and Skype.”

2. Advertising May Not Be Welcome

It doesn’t help that service providers such as WhatsApp are saying they don’t want to include advertising:

The people at WhatsApp say explicitly that they “are not fans of advertising.” Because of this, “WhatsApp is currently ad-free and we hope to keep it that way forever.” Are you listening, every other company? Because this is what users want.

Mainstream OTT messaging providers such as Facebook Messenger and Google Hangouts will be more sympathetic to marketers’ needs — but first they need to capture a significant market share.

3. Messaging Platforms Are Aiming To Keep Those Eyeballs Engaged

As always in the mobile space, the Asian markets demonstrate the future of OTT messaging platforms. According to BGR:

Mobile apps linked to messaging services are taking over the two most important Asian app markets, Japan and Korea. Today, nine out of the ten biggest revenue generators on South Korea’s Google Play app chart are Kakao apps. It is effectively becoming impossible to launch a major hit in the Korean app market unless you use Kakao’s messaging app as your platform. This in turn means that everyone interested in mobile apps is using Kakao. The messaging app has turned into the dominant platform for game distribution. LINE’s role in Japan is not quite as strong, but games for this messaging app regularly hold about half of the positions in Japan’s top-10 iPhone and Android app revenue charts.

… Time spent on messaging apps is exploding even in markets where games linked to these platforms have not yet taken off. According to The Hindu, people in India now spend 27 minutes per day on chat apps, up from 7 minutes just two years earlier. Many of the most populous countries in the world — China, India, Japan, Korea — have now fallen in thrall of the messaging apps. Their share of the daily leisure time of consumers is rapidly expanding. This will inevitably give messaging app vendors a golden chance to turn into content delivery companies. And to stage a serious offensive against Facebook, Twitter and Google.

Second, revenue growth generated by games linked to messaging apps is unearthly. LINE is now generating 67% revenue growth — between quarters, not annually. China’s WeChat is already on a big, global marketing binge, which has helped it boost its presence dramatically from Italy to Nigeria over the past summer.

Finally, one of the hottest app industry topics in Tokyo [at the Japan Game Show in September 2013] was the expansion of content services that we are about to witness. Over the next year, a rapidly expanding selection of comics, videos and music will start flowing to users of WeChat, LINE and Kakao.

4. OTT Messaging Is Taking Over from SMS

OTT Messaging isn’t only competing with Social Media, of course — it’s also taking on good old SMS text messaging, and (according to an April 2013 study by Informa) it’s already won. Business Insider reports that 41 billion OTT messages are now exchanged every day, compared with 19.5 billion SMS messages.

A late-2012 white paper by McKinsey highlights the key drivers of OTT adoption:

  • Technology Readiness, in the form of 3G or 4G networks; and penetration of smartphones
  • Cost Incentives, with SMS too expensive relative to data charges
  • Social Propensity, particularly driven by smartphone adoption amongst teens and young adults
  • Market share of specific OTT messaging applications

Here’s how those triggers drove adoption in South Korea and the Netherlands, according to McKinsey :

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Do most of these triggers apply in New Zealand? Indeed they do.

5. Blink And You’ll Miss It

As if the proliferation of messaging platforms was not enough to worry about in itself, we’re now seeing the development of content that, like SnapChat, self-destructs. Forbes reports:

[Ephemeral apps, such as, in this example, Frankly, work like this:] send a message, and your recipient will initially see a box of blurred text. Once they tap it, a set timer counts down the seconds till the message has been deleted; sent to the digital afterlife. Chat windows, for the most part, thus stand empty at all times. Each time someone sends a text, they can also tap a black “x” afterwards to take it back, in case they change their mind. The idea is that the sender is always in control.

“Maybe, just as the rise of big data and government surveillance and privacy concerns and the over-curated self images on Facebook, people are saying, ‘I miss the days when I could have a private conversation,’” says Frankly founder Steve Chung. “‘Maybe I’m not saying anything bad, but you and I sit down in a coffee shop and we remember what we remember. When we leave, we don’t have reams of paper that recorded it all.’”

The question then isn’t if people want their messages deleted — plenty seem perfectly happy to keep reams of recorded texts — but whether they want more control over what is recorded.

Other ephemeral messaging services include such little-known names as Wickr, Blink, Gryphn, Ansa, SecretInk and Tiger Text. They’re fighting for market share in a still-developing arena, responding to consumer demand for a little more privacy.

Your messages probably still aren’t safe from the likes of the GCSB, Julian Assange or Edward Snowdon, but at least your boss shouldn’t be able to read them without your permission.

PS We cover OTT Messaging in detail in our new Mobile Marketing course

NZ’s Leading Pinterest Pages

We’re slowly assembling a database of Pinterest Pages created by or for NZ businesses and we’d welcome your input. Please tell us in the comments about any NZ business pages on Pinterest with more than 100 followers (yes, as few as that — Pinterest is still an acquired taste for most New Zealand marketers, and Kiwi companies have only a fraction of the followers on Pinterest when compared to the numbers they have attracted on Facebook or Twitter).

On the inevitably-flawed basis of the 497 NZ Pinterest Pages we’ve collected and analysed so far, here are the Top Ten Kiwi pages (ranked by Numbers of Followers), as at March 12 2013:

10. Black Cow Nz (mystichillsnz) — 551 Followers

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9. DressMePretty .Co.NZ (DressMePrettyNZ) — 592 Followers

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8. Good as Gold (goodasgold) — 690 Followers

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7. Glassons (glassons) — 866 Followers

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6. Farmers – Your Store (farmersnz) — 918 Followers

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5. Superette (superettestore) — 978 Followers

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4. Pure New Zealand (purenewzealand) — 1192 Followers

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3. Styled NZ (StyledNZ) — 2,215 Followers

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2. Air New Zealand (airnewzealand) — 2,338 Followers

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And, leading the charge (and, frankly, way, way out in front):

1. Michelle Halford (mgrim) — 15,808 Followers

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NB: We’ve included Michelle in this list because her blog accepts advertising and sponsorship revenues, which from our perspective makes her operation a business. We left out a large number of other Kiwis who might otherwise belong on this list because, at least from what we could observe, they pin for pleasure rather than for business purposes.

 

Content Types

The types of Pinterest pages that are topping the polls here are no real surprise. As we noted in an earlier article, these are the most popular content types on Pinterest:

If your product falls within one of those categories, we recommend that you consider adding a Pinterest Page to your product portfolio, sooner rather than later — 291,000 Kiwi consumers visited the site in December 2012, according to Nielsen Online Ratings. That may be only about a tenth of the number of NZ visitors attracted to Facebook, but it’s still a sizeable chunk of potential buyers of your products or services.

PS We would be remiss if we didn’t mention that we cover Pinterest in detail in Lesson Two of our Advanced Social Media Marketing course.

 

How to use Social Media for Business: What to Track

Companies in New Zealand and around the world are now starting to use social media for business purposes more effectively, tapping into tools such as Facebook and Twitter, to market their services and to communicate more effectively with their customers.

According to a recent study reported by the Los Angeles Times, around 90% of U.S. small businesses are now using social networking platforms. That’s the good news.

Slightly less cheerful news, however, comes from a study by eConsultancy and Adobe, which finds that there’s little deep tracking going on by those who use social media for business.

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One In Five Companies Who Use Social Media For Business Do Virtually No Tracking

You’ll recall the old saying “Half of my advertising is wasted. I just don’t know which half.” That situation was almost acceptable in the context of mass marketing, where companies cast their advertising upon the vast watery expanse of print and broadcast media and the only way to figure out what was working was to count the number of sales you made (or, more likely, how often the Chairman was told “saw you on TV” by his golfing buddies) — but when you’re dealing with one-to-one methods such as social media, it’s simply poor business practice not to know what results you’re achieving.

So what should you track?

To answer this question, let’s just focus on Facebook for now. Through Facebook’s built-in Insights tools, you can track:

  • Likes. That, sadly, is where many marketers start and stop their tracking. In our view, that’s a lot like monitoring the number of people who come into your store — but not bothering to track whether or not they buy.
  • Talking About. Knowing this information is a big step up. Social Media, as the name suggests, is all about talking – engaging with your followers, and having them engage with you. Take a look at how many of your fans were actually “talking about” you last week, and calculate that as a percentage of your overall followers. The whole idea, when you use social media for business, is to engage — otherwise, you might as well devote your time and money  to mass media advertising instead, you’ll reach far more people.
  • Reach. Facebook calculates how many people saw your posts, either directly or via your followers. This will be low at first, but don’t worry — one of the first lessons to learn when you set out to use social media for business is that size (of audience) doesn’t matter. Engagement is the key.
  • Sentiment. It’s good to have people talking about you, but if they’re not saying nice things, clearly something’s rotten in the state of Denmark (or Dargaville). Still, it’s better to know when bad things are being said (rather than remain in blissful ignorance) — it may be hurtful, but at least you can do something about it. So how do you measure sentiment (without poring over your own Facebook pages every other moment)? Start with a free Sentiment Analysis tool such as the Chrome plugin offered by Viral Heat, and consider other, more powerful paid options as budget allows.

What else can you track to use social media for business effectively?

As the graph above suggests, Revenue is an obvious measure (and one which will matter most to your CEO and CFO). “Why am I spending so much time on Facebook? Take a look at these sales!”

How can you track revenues and attribute them to your use of social media for business marketing?

  • If you sell online, use a unique web link to send people from Facebook (or whatever social media site you’re using) to your website
  • If you only sell offline, make an offer that’s unique to your social media efforts (eg “free giftwrap when you quote OFFER FB”)

Traffic

Another metric that many of those who use social media for business choose to track: how much traffic was driven from their social media pages to their website. We don’t want to delve into the technical aspects here — suffice it to say that your webmaster (if you have one) will tell you what you need to know about setting up Google Analytics to monitor such efforts.

Social Media Training

If you’d like more detailed advice on how best to use social media for business, we encourage you to check out our social media training courses.We cover a variety of topics, including:

The courses are all online and they provide comprehensive explanations of tracking and the many other aspects that matter when you use social media for business.