Social Media Trends & Innovations

Hamutal Schieber | March 2017

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.

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

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

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

-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.

Chat Apps, Monthly Active Users (millions), Nov. 2015 vs Jan 2017

900

700

860

650

300

200249

211

1200

1000

877 846

399 399

249217

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%

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 FacebookMessenger

Youtube Linkedin Whatsapp Facebook

% of engagers/contributors who are 16 - 24 years old, source: GlobalWebIndex Q3 2016

Major TrendsTrend 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

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

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.

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%.

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

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.

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.

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.

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

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

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.

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.

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)

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.

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.

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

Thank You!

The research was conducted by: Hamutal Schieber

Schieber Research | Market Research & Competitive Intelligence

www.researchci.com | hamutal@researchci.com

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