Will Brands Cozy up to Geneva, the No-Like Zone?

Will Brands Cozy up to Geneva, the No-Like Zone?

Social media

Group chat app Geneva is setting out to disrupt some established norms: unlike its peers, the group communication platform is jettisoning familiar benchmarks like follower counts and Likes. An unconventional approach, perhaps, but people are responding: the app’s user base has quadrupled since the beginning of 2022.

Unique as Geneva is, it’s making its way in an undeniably crowded field. What exactly are its chances in an arena where social apps can enjoy a moment in the sun, only to disappear seemingly overnight? Let’s take a closer look.

Geneva Has a Historic Name — and Aspirations

Geneva was launched in March 2020, named by founder Justin Hauser after the Geneva Conventions. If the historic treaties created after World War II were meant to define what humane treatment of people during wartime should look like, Hauser wants Geneva the app to redefine what it means to connect online. Hauser sees the treaties as having made the world a better place. If he has his way, his app will do much the same thing, fostering healthy conversation in a safe place. As noted on the Geneva website, “We believe technology products can bring out the best in us or the worst in us and we’ve poured our hearts and minds into ensuring Geneva is for the better.”

It’s no pipe dream. Geneva has walked the walk from the get-go, eschewing the sense of exclusivity fostered by services like Clubhouse and its invite-only model. Instead, Geneva leans into the idea of inclusivity. Come one come all seems to be the mandate — an attitude that embraces wide-ranging interests as well as personalities. That said, the app takes protecting its users seriously. Trolls need not apply.

The setup is pretty simple: users log in, at which point they can join one of the existing “homes” on the app, or create their own. The core architecture here draws its inspiration from Slack, and what drives the app is the idea of creating community around shared passions, which on Geneva run the gamut from thrifting to wellness. What’s missing from this equation? The social pressures that heat up when users become consumed with user numbers, Likes, or a highly curated online persona. “Rooms” within Geneva further define user experience:

  • Chat rooms: Similar to Slack channels, the chat rooms facilitate casual, spontaneous conversations, whether users are making plans or sharing favorite pet photos.
  • Post rooms: Announcements, internship bulletins, and recipes all find a home in the post rooms, which allow for structured, asynchronous sharing of content.
  • Audio rooms: Likened to a big group phone call, audio rooms allow users to pop in and out for casual conversation or scheduled meetings.
  • Video rooms: For the times when we want to see one another’s faces, video rooms are go-tos for everything from book club discussions to live study meets.
  • Broadcast rooms: A nice alternative for hosting planned virtual events or expert panels, broadcast rooms allow up to nine people to live stream to thousands. Audience members can “raise their hands” and access the stage, or communicate via a live chat feed.

Geneva combats the ubiquitous threat of misinformation via features like “Gates,” which use “House Keys” and questionnaires to control access to Geneva homes and manage who can or can’t exert control over message moderation or invites.

Influencers Dig Geneva

Influencers are spiking an interest in the platform, drawn by the promise of real connection. The Washington Post notes, “[N]ow content creators are setting up accounts on chat apps, like Geneva . . . where they can connect privately and directly with people they know are listening.”

The intimacy of a give-and-take chat is appealing, as content creator Kate Glavan notes: “It’s more about what the community wants instead of just [me and best friend Emma Roepke] posting,” she says.

In short, the old model — creators putting out a steady stream of content, sometimes into the void — has been upended. So is the natural hierarchy that can be created between creators on the one hand and users on the other.

In Geneva, home creators don’t direct the discussion; they simply provide a place for people to connect. It’s like that great friend in college who always knew how to bring people together and create a space where the fun could commence. Again, we’re talking friendly, troll-free fun: as Hauser puts it, “People are fed up and they’re seeking salvation in safer spaces.” If Hauser has his way, that safe space will be Geneva.

Why Geneva Matters to Brands

Brands are taking note, though the app is currently free and does not incorporate paid advertising tools. Suncare brand Supergoop and haircare line Ceremonia are examples of brands that have created Geneva homes and rooms to foster conversation, offer product training, and facilitate product development.

And for marketers interested in reaching Gen Z, Geneva may prove a profound tool. Gen Z is drawn to the ideas of community, mutual support, and cooperation, all mandates that Geneva embraces. And because Gen Zers like to do something — whether it’s engage in discussion or tap and click — the Geneva platform, predicated as it is on the idea of engagement, is an obvious go-to for the Gen Z demographic.

The platform also underlines a powerful lesson for brands: numbers (as in Likes and user stats) aren’t everything. In fact, Geneva seems to be out to prove that less can be more. The one-on-one connections fostered by the app can offer a profound exchange that almost certainly pays off for businesses in the long run, regardless of that business’s size. When a consumer has a question about a product, the importance of that question getting answered by a human being — not an algorithm, not a phone tree, in a friendly space — cannot be overstated. In Geneva, users are heard.

And being heard creates loyalty.

Contact True Interactive

Curious as to whether experimenting with an app like Geneva might make sense for your brand? Contact us. We can help.

The Most Popular Social Media Apps for Teens

The Most Popular Social Media Apps for Teens

Social media

How are teens spending their time on social media these days? This is an important question for advertisers. That’s because teens spend money. They talk about their favorite brands with each other. Their preferences influence the popular cultural trends that advertisers need to understand in order to stay relevant. And if advertisers play their cards right, they can, in turn, influence teen behavior.

A new survey of Americans aged 13-17 from Pew Research Center reports some eye-opening findings about where and how teens are spending their time online. Key findings:

  • YouTube reigns. 95 percent of teens use YouTube, followed by TikTok, Instagram, Snapchat, and Facebook.

Social Media Apps

  • Only 32 percent use Facebook, compared to 71 percent in 2014-15. Not only is there a smaller share of teenage Facebook users than there was in 2014-15, teens who do use Facebook are also relatively less frequent users of the platform compared to the other platforms covered in this survey. Just 7 percent of teen Facebook users say they are on the site or app almost constantly (representing 2 percent of all teens). Still, about six-in-ten teen Facebook users (57 percent) visit the platform daily.

Leading Social Sites

  • Many teens are always on. 46 percent of teens say they’re on the internet “almost constantly,” up from 24 percent in 2014-2015.  Roughy one in five teens are almost constantly on YouTube, which leads all platforms.

Social Media Usage

  • The vast majority of teens have access to digital devices, such as smartphones (95 percent), desktop or laptop computers (90 percent) and gaming consoles (80 percent). Since 2014-15, there has been a 22 percentage point rise in the share of teens who report having access to a smartphone (95 percent now and 73 percent then). While teens’ access to smartphones has increased over roughly the past eight years, their access to other digital technologies, such as desktop or laptop computers or gaming consoles, has remained statistically unchanged.
  • More affluent teens are particularly likely to have access to all three devices. Fully 76 percent of teens that live in households that make at least $75,000 a year say they have or have access to a smartphone, a gaming console and a desktop or laptop computer, compared with smaller shares of teens from households that make less than $30,000 or teens from households making $30,000 to $74,999 a year who say they have access to all three (60 percent and 69 percent of teens, respectively).
  • U.S. teens living in households that make $75,000 or more annually are 12 points more likely to have access to gaming consoles and 15 points more likely to have access to a desktop or laptop computer than teens from households with incomes under $30,000.
  • Habits vary by demographic. Teen boys are more likely than teen girls to say they use YouTube, Twitch and Reddit. Teen girls are more likely than teen boys to use TikTok, Instagram and Snapchat. Higher shares of Black and Hispanic teens report using TikTok, Instagram, Twitter and WhatsApp compared with white teens.

Implications for Brands

  • Short-form content on TikTok is popular, but so is longer-form content on YouTube. Within just a few years, TikTok has famously rocketed to popularity by featuring videos that are about 30 seconds in length (often shorter). But YouTube’s popularity demonstrates that teens also like more in-depth video content, as Mashable points out. Longer-form content lends itself to content marketing, such as “how to” topics and podcasts, as noted here. On the other hand, shorter-form TikTok videos lend themselves to catchy, engaging micro-moments. To use a television analogy, TikTok is the place for 30-second spots, and YouTube for advertorials. As one influencer on LinkedIn wrote, “If digital media is hunger, TikTok feels like McDonalds, and YouTube feels like [insert fairly decent quality restaurant]. TikTok gives you dopamine hits. It’s addicting, you can become consumed by it, but it doesn’t mean you’re satisfied with the quality. Each swipe is, ‘okay, now what’s next.’ Before you know it, it’s an hour. YouTube, even with most videos watched being through recommendations, provides a deeper connection with the viewer. If you watch a video for >1min, you’re truly invested. This also means that creators will build more meaningful viewer connections through YouTube. All data shows that Gen Z appreciates the quality and connections of YouTube.”
  • Teens are not all the same. Variances exist by income level and demographic, as noted above. It’s important to understand the differences depending on your audience. In addition to the statistics cited above, we also noticed the popularity of gaming consoles among more affluent teens. And overall, Hispanic (47 percent) and Black teens (45 percent) are more likely than white teens (26 percent) to say they use at least one of the five most popular social media online platforms almost constantly. And teen girls are most likely to be social media loyal than teen boys: teen girls are more likely than teen boys to express it would be difficult to give up social media (58 percent versus 49 percent). All of these nuances influence any company that wants to launch a credible multi-cultural marketing strategy.
  • Facebook still matters, but Instagram does even more. Even though it’s less popular among teens than it was in 2014-15, it’s still more popular with teens than Twitter, Twitch, WhatsApp, Reddit, and Tumblr. As teens get older, they may very well spend more time on Facebook. And Facebook the platform still enjoys widespread usage among adults, as seen in other recent Center studies. However, it’s clear that among Meta’s brands, Instagram is more important for reaching teens, especially as Instagram morphs into a social selling site.

Contact True Interactive

We deliver results for clients across all ad formats, including social mediavideo, and mobile. To learn how we can help you, contact us.

Photo by Rami Al-zayat on Unsplash

How Brands Are Celebrating Women’s History Month

How Brands Are Celebrating Women’s History Month

Advertising Social media

In March, businesses are stepping up to celebrate Women’s History Month, not to mention International Women’s Day on March 8. Of course, it’s always a good idea to uplift women; savvy brands also understand that women happen to possess incredible purchasing power. As Inc. points out, women drive the majority of consumer purchasing, making buying decisions not only for themselves but for their families, in so doing driving a whopping 70 to 80 percent of all consumer purchasing. Here’s how some brands are responding to Women’s History Month:

Taking Action

According to Adweek, Pinterest is honoring the month by supporting 10 women-owned businesses on its platform. The initiative is part of the company’s Pinterest Elevates program; participants receive not only ad credits but also a personal coach to help boost their brand visibility and better connect with Pinners. As Pinterest global head of inclusion and diversity Nichole Barnes Marshall blogged, “At Pinterest, it’s important that the content on our platform accurately represents and reflects the world we live in. We’re excited to honor these women and the work that they do, bringing them greater awareness and attention this Women’s History Month and beyond.”

Hershey’s, meanwhile, is highlighting the SHE in Hershey: as the candy powerhouse sees it, those three important letters in the middle of the iconic Hershey name deserve to be celebrated, and one way to do so is with limited edition packaging. Perhaps the Hershey site puts it best: “there is no Hershey’s without SHE.” This year, the company’s award-winning #HerSHE campaign, which originated two years ago in Brazil, will brighten seven international markets, from Brazil to Canada, with the Hershey’s milk chocolate bar wrapper celebrating cultural female icons in each country, their accomplishments, and the impact they’ve made. The chocolate company has also brought in a special influencer to help get the word out: actress and comedian Mindy Kaling appears in a special Celebrate SHE ad. As Kaling notes, “Girls rule. Celebrate accordingly.”

London-based jewelry brand Missoma has found a partner with which it can honor the month—and do good. Fifty percent of sales of Missoma’s limited edition Shine On necklace will go to Girls Out Loud, a social enterprise dedicated to raising the aspirations of teen girls in the U.K. Marisa Hordern, CEO and creative director at Missoma, gets why this collaboration is so powerful, explaining, “As a female-led brand with a female founder and CEO, and just over 85 percent of our leadership roles held by women, we [at Missoma] are invested in the female leaders of tomorrow. We really believe an important part of increasing female leadership is mentorship, confidence, and giving girls and women the opportunity to have a voice.”

Here in the U.S., American shoe brand Keds has been honoring women since the company first came on the scene in 1916. Their Champion Sneaker has always been made for men and women; the design remains iconic more than a century later. This year, Keds pledges to donate $25 from every pair of Champions sold on the official Keds e-commerce site to global nonprofit Dress for Success, an enterprise that supports low-income women by providing professional clothing to aid in the job search and interview process.

Online grocery platform Instacart has announced that it’s allocating $1 million to support women-owned food and beverage brands that advertise on the company’s website and app. Instacart has partnered with three women-led brands: gluten- and dairy-free cookie brand Sweet Loren’s; Three Wishes Cereal; and Twrl Milk Tea to expand an initiative that began last year to support Black-owned CPGs. According to Ali Miller, the head of ads product at Instacart, highlighting women entrepreneurs is a no-brainer: about 80 percent of Instacart customers are women. Women also make up 70 percent of Instacart’s shoppers—the folks who collect, purchase, and deliver items ordered by customers. As Miller notes, “Our goal is to continue to identify and amplify more women entrepreneurs and brands with Instacart Ads to help them drive discovery and business growth.”

Lessons Learned

What can we learn from the example these brands have set? For starters, it’s important to understand that:

  • Tone matters. Women’s History Month is about celebration! Hershey’s exemplifies this upbeat tone in their partnership with Kaling, who brings a spirit of lightness and fun to the topic of gender equity. Also celebratory: the bright designs on the Hershey milk chocolate bar wrappers.
  • Visuals have power. Missoma has encapsulated its messaging in a beautifully designed piece of jewelry. Every time a customer wears their Shine On necklace, they might think about the themes of Women’s History Month, long after March is over.
  • Actions matter. It’s not enough to talk the talk—savvy brands also demonstrate a commitment to equity and lifting women up. Keds’ efforts to support low-income women with sales from their shoes illustrate this principle perfectly.
  • Overthinking things can muddy the waters. In short, stay focused on uplifting your audience (see point 1), because getting too clever with purpose-driven advertising may distract from your message. One need look no further than McDonald’s disastrous 2018 International Women’s Day campaign, in which the brand tried to playfully overturn their logo, from an M to a W, on platforms such as Twitter and Instagram. The stunt backfired, with critics ridiculing the brand’s purported commitment to women’s success—or anyone’s, for that matter—and calling on McDonald’s to pay its employees a living wage. McDonald’s learned the hard way that in this case, a cute stunt didn’t cut it.

Contact True Interactive

How can your brand authentically, creatively, celebrate your customer base in the right spirit? Contact us. We can help.

Consumer Shopping Trends for the 2021 Holiday Season

Consumer Shopping Trends for the 2021 Holiday Season

Amazon Google Social media

What does the holiday shopping season hold for businesses? We have already heard plenty about the potential problems that a global supply chain crisis will pose. They include product shipping delays, bare shelves, and higher prices. But how are consumers planning to research and buy as the shopping season kicks into full gear? A recently conducted webinar by ChannelAdvisor, “Navigating Online Consumer Behavior: 2021 E-Commerce Trends and Forecasts,” provided some answers.

ChannelAdvisor and Dynata surveyed 5,000 global consumers to learn how they are shopping this holiday season, including 1,000 U.S. consumers. ChannelAdvisor also relied on secondary research from sources such as eMarketer. Here are some major takeaways:

E-Commerce Is Exploding

eMarketer data

 

Chart showing people shopping more

E-commerce has accelerated by two-to-three years as a percentage of total retail sales. ChannelAdvisor says that the accelerated pace will continue for the next few years. That’s because Covid-19 forced more shoppers online. Nearly 60 percent of consumers are shopping online more frequently than before the pandemic, and 32 percent of U.S. consumers have more confidence shopping online than they did before the pandemic. A whopping 58 percent of consumers are spending more time on Amazon.

Key takeaway: businesses should expect the major ad platforms such as Amazon, Facebook, Google, Instagram, Snapchat, and TikTok to integrate advertising and commerce more aggressively. We recently saw Google make it easier for shoppers to find products through visual search and display. TikTok continues to launch new shopping features. It’s important that businesses capitalize on these opportunities to capture revenue in these moments when people are searching and browsing on digital.

Get Ready for a Strong Holiday Shopping Season

A chart showing people shopping online

Holiday shopping is increasing in 2021

More than half of U.S. consumers will shop online more than before the pandemic. By contrast, 38 percent of U.S. consumers said they’d shop more online when they were surveyed in May 2020. And 37 percent of U.S. consumers expect to do more holiday shopping online compared to 2020. Only 6 percent of shoppers will shop less.

This finding is not surprising. We saw that even during the hardest days of the pandemic when the world faced economic uncertainty, consumers were willing to open up their pocketbooks and spend. But as ChannelAdvisor noted, much of that spending happened online.

Key takeaway: it’s going to be a busy holiday shopping season, and savvy advertisers are already ramping up their holiday shopping advertising. According to Deloitte, consumers will spend 9 percent more this holiday season compared to 2020. A new survey from JLL says that consumers plan to spend an average of $870 per person on holiday expenses this year, a 25.4 percent increase from last year. Consumers are ready to shop. On the downside, if the global shipping crisis is as bad as economists say it’s going to be, those consumers may experience the disappointment of product shortages. So advertisers are encouraging people to shop sooner while inventory is in stock.

Amazon and Google Dominate Product Research and Purchase

 

Research online

Purchase online

Amazon is the Number One destination for people to research product: 41 percent use Amazon to research products. Google, though, is a strong second place finisher. Amazon has built strong trust because when people are checking reviews, prices, and product inventory, Amazon gives them one easy place to do all that. During the holiday shopping season, even more consumers will do research on Amazon, and  65 percent will purchase on Amazon.

Key takeaway: capitalizing on Amazon Advertising products is a must if you want your brand to be visible when shoppers are doing deep product research. But don’t shift your ad budget from Google if you’re already a Google Ads customer. A two-pronged approach works best.

Social Media Is More Important for Younger Audiences

 

chart showing Instagram usage

People buying on social

Social is the key research channel for younger audiences. 53 percent of 18-to-25 year olds have researched products on Instagram. 51 percent have discovered products they purchased on social media sites. Facebook remains a strong source of product research for 26-to-35 year olds. Meanwhile, 30 percent of 26-to-45 year olds will do the majority of their holiday purchasing on social sites.

Key takeaway: although social media sites lag far behind Amazon and Google for product research, they index high for Millennial and Gen Z shoppers. Given the popularity of Instagram as a shopping destination, it’s important that advertisers capitalize on Instagram ad products such as Instagram Shop to reach younger shoppers. Essentially, Instagram ad products make it possible for businesses to turn posts and stories into ads. Instagram also makes it possible to create ads across Instagram and Facebook, which sounds very efficient – but remember that what works on Instagram might not be as effective on Facebook because Facebook appeals to a slightly older audience.

For more insight into holiday shopping trends, read a recently published True Interactive post, “How Retailers Can Prepare for the Holiday Shopping Season.”

Contact True Interactive

To maximize the value of your holiday shopping ad campaigns, contact True Interactive. We help our clients create effective online advertising all year-round, including the holiday season, and we understand the nuances of creating effective holiday ad campaigns.

Photo by Jakob Owens on Unsplash

Why Discord Matters to Advertisers

Why Discord Matters to Advertisers

Social media Uncategorized

Discord is a free voice, video, and text chat app that’s used by people aged 13 and up to chat and essentially hang out. Initially launched in 2015 as a home for gamers, the app has since expanded its reach and now attracts users from gaming and non-gaming communities alike. To say it’s popular is something of an understatement: the app enjoys more than 150 million monthly active users as of July 2021. But it accepts no advertising.

Why should advertisers care about Discord? Read on to learn more.

What Is Discord?

Users have embraced Discord as a way to connect with friends on a daily basis. Available for Mac, PC, iPhone, and Android devices, the app facilitates talk around any number of topics, from homework to mental health to travel.

Discord is mostly used by small and active communities who like to connect regularly, and for these groups the app follows an invite-only protocol. But larger, more open communities also flourish on Discord; these larger communities can be public, and tend to focus on specific topics like gaming, the app’s original mandate. Minecraft, for example, draws a large following.

As Discord puts it, shared interests drive the conversation.

Perhaps unsurprisingly, an entire vocabulary exists to help users navigate the app: “servers” are the spaces created by communities or friend groups (as Business Insider describes it, servers are a less-formal version of the Slack app). Any user can initiate a new, free server, and invite their friends; individual servers promote their own topics and rules. Discord servers are subsequently organized into text and voice “channels,” which are typically devoted to specific topics. Users can post (type) messages on text channels; they can also upload files and share images. Voice channels allow users to communicate real-time through a voice or video call.

There are literally thousands of Discord servers, so whether your jam is cute cats or a game like Fortnite, a Discord server that reflects your interests probably already exists.

Why Discord Matters to Businesses

But there’s no advertising. So, why should businesses care?

In a word: presence. Even though Discord is an ad-free platform, brands can and do maintain a presence there. Think of Discord as a social-listening tool. As reported in Marketing Dive, Discord is a source for learning about emerging culture and trends. By following Discord, brands can figure out fresh was to become culturally relevant with their marketing.

What does that look like, exactly? Essentially, brands can create their own branded communities on Discord, places where they can interact head-on with their most loyal customers. These communities are a zone where brands and consumers connect over common interests — and there might be a perk or surprise in there for the customer, to boot.

Virtual events are popular on the app: consider the Q&A fashion retailer AllSaints hosted in May, in which the menswear designer gave users a peek into how its styles have changed over the years. Chipotle took a different tack, hosting a virtual job fair on Discord that allowed the fast-casual restaurant chain to announce a hike in wages (to $15 an hour), and gave current employees an opportunity to talk about benefits and career paths.

Of course, for some brands, the app’s gaming roots are a rich vein to mine. Consider teen retailer Hot Topic, which initiated a Discord server specifically targeting fans of Japanese anime. Hot Topic relies on its own presence to support anime fandom, which overlaps with Hot Topic’s own audience.

What Brands Should Do

What does all this mean for your brand? We recommend that you:

  • Keep in mind Discord’s audience. Are they your audience? In other words, does Discord promote a niche that represents common ground for your brand and a community of Discord users?
  • Do your homework and learn from how other brands are succeeding on Discord. Discord users seem to respond to authentic conversations and events on the app. How can you capitalize on this? Keep in mind the Hot Topic example: the retailer tapped into a theme already established as part of the Hot Topic brand — then ran with it. They didn’t pretend to be something they’re not or try to shoehorn themselves into a conversation that didn’t make sense.
  • Listen and watch closely for ideas to inform your advertising beyond Discord. What can you learn from the ways Discord connects with its audience?

Contact True Interactive

Interested in exploring Discord—or another chat app? Contact us. We can help you stake your claim.

 

 

 

 

 

 

 

Why Snapchat Is Attracting More Advertisers and Users

Why Snapchat Is Attracting More Advertisers and Users

Snapchat Social media

Snapchat’s turnaround in 2020 was no fluke. The company recently reported a monster quarter, reaching its highest year-over-year revenue and daily active user (DAU) growth rate in four years. It’s time for businesses to seriously consider Snapchat as part of their game plan for reaching Gen Z and Millennial audiences. Many are already, which is why Snapchat’s ad revenue keeps rising. Let’s take a closer look.

Snapchat Reports Stunning Quarterly Growth

Snapchat’s growth for the second quarter of 2021 was nothing less than stunning. Its revenues increased to $982 million, a 116 percent increase compared to the prior year. That growth was accompanied by an increase in DAUs, an important metric because more people using Snapchat means a growing audience for advertisers. DAUs were 293 million for Q2 2021, an increase of 55 million, or 23 percent year over year. DAUs increased sequentially and year over year on both iOS (Apple) and Android (Google) platforms.

Evan Spiegel, CEO of Snapchat’s owner, Snap, said in a statement, “Our second quarter results reflect the broad-based strength of our business, as we grew both revenue and daily active users at the highest rates we have achieved in the past four years. We are pleased by the progress our team is making with the development of our augmented reality platform, and we are energized by the many opportunities to grow our community and business around the world.”

Why Is Snapchat Is Growing

Spiegel noted that Snapchat is succeeding for three reasons: a growth in augmented reality (AR) features, new content, and new advertising features. Examples of all three:

New AR Features
  • Connected Lenses, enabling Snapchatters in different locations to interact with each other through AR.
  • Several try-on capabilities with Lens Studio 4.0, including multi-person 3D body mesh, advanced cloth simulation, and a new visual effects editor for more realistic Lenses.

These are significant because AR has always been an important competitive differentiator for Snapchat, as we noted on our blog recently. Medium recently commented, “One of the reasons that Snapchat is able to carve out its own niche in the increasingly combative social media arena is its singular focus on AR-powered visual communication, which differentiates Snapchat from its competitors.”

Source: Snap investor presentation

Indeed, businesses have capitalized on Snapchat’s embrace of AR and are doing so as they gear up for the 2021 holiday shopping season. In a recent webinar, Snapchat shared example of Ugg boots, which is part of Deckers Brands. A spokesperson from Deckers Brands said that Deckers used AR in Snapchat for their holiday campaigns in 2020 to allow customers to use Ugg filters to “try on” their boots. This year, Deckers will probably do something similar with apparel, since Ugg is expanding its products into all kinds of apparel. (Deckers is no stranger to Snapchat. In this 2020 investor call, Snapchat describes how Ugg has successfully applied Snapchat’s dynamic ads feature.)

New Content
  • Eight new and renewed Snap Originals, including Swae Meets World, a documentary featuring American musician Swae Lee as he prepares to launch a solo album.
  • A record 177 new international Discover Channels, including 36 in the UK and 24 in India, one of which is a partnership with Sony Pictures Network to launch five Shows.

These developments arrived on top of Spotlight, which is Snapchat’s feature for monetizing individual creator content, launched in November 2020. New content features geared toward businesses and individual creators alike are important because they provide advertising sponsorship opportunities for brands and the growing creator economy.

Source: Snap investor presentation

New Advertising Features
  • Public Profiles for businesses, which allows any business to create a profile on Snapchat showcasing their Lenses, Highlights, Stories, and shoppable products.
  • An integration with Salesforce, allowing brands to leverage their first-party data to reach Snapchatters with relevant ads.
  • The Creator Marketplace (within self-serve Ads Manager), connecting advertisers with certified Lens Creators and facilitating the AR development process.

The Salesforce integration is especially noteworthy. With Google phasing out support for third-party cookies on the world’s most popular browser, Chrome, businesses are under more pressure to figure out how to maximize the value of their first-party data. Snapchat is sensing and responding to this need.

The news media reacted positively to Snapchat’s strong quarter. The “Yes, but can they do it again?” tone that characterized coverage of Snapchat’s positive results in 2020 subsided. For example, Meghan Bobrowsky of The Wall Street Journal portrayed Snapchat as a feisty and innovative company successfully fighting back at is copycat rivals.

She wrote, “The company, best known for disappearing photos and messages on its Snapchat app that is popular with teens and young adults, has impressed investors with its growth during the pandemic, outpacing much larger rivals. It has introduced new features to appeal to businesses beyond traditional social-media advertising, including a push into augmented reality.”

What Advertisers Should Do

We believe advertisers should take a closer look at Snapchat. Start with the creation of a Snapchat Public Profile (similar to a Facebook page) to understand how to interact with Snapchat’s audience. And understand how the Snapchat audience interacts with content. According to Snapchat, its user base, which skews toward Gen Z and younger Millennial generations, has these characteristics in common:

  • 150 percent more likely than non-Snapchatters to prefer to communicate with pictures over words.
  • Snapchatters are three times more likely than non-Snapchatters to say they are using AR more than they did last year to try on products.
  • The Snapchat Generation is 1.4 times more likely than non-Snapchatters to gravitate to immersive video and mobile games, including AR experiences.

If your brand already rocks Instagram with visual content, chances are you are well positioned to succeed on Snapchat!

Contact True Interactive

Is Snapchat a good partner for your brand’s reach? Contact us. We can advise. Learn more about our expertise with social media platforms here.

For More Insight

How Snapchat Keeps Innovating with Augmented Reality,” Bella Schneider.

Snapchat Spotlight: Advertiser Q&A,” Max Petrungaro.

Why Snapchat Keeps Growing,” Bella Schneider.

Why Twitter Is Succeeding

Why Twitter Is Succeeding

Social media Twitter

Twitter never got the memo that predicted its failure.  As far back as 2016, pundits have been forecasting the demise of the microblogging service, citing, among other things, a lack of direction and a stagnant user base. Even when Twitter’s stock value rose in 2020, detractors dismissed the news and said the company was simply benefiting from the sudden rise of the digital economy. But this phoenix continues to rise from the ashes, and it’s time to give Twitter its due. The company has made an impressive turnaround, as evidenced by its latest earnings announcement. In fact, the company’s performance beat Wall Street expectations in many important categories.

In discussing its growth, Twitter has credited a jump in advertiser demand. Moreover, it appears as though Apple’s much-discussed privacy controls launched in 2021 are not hurting Twitter to the degree expected. Let’s take a closer look at why Twitter is succeeding.

Strong Advertising Growth

What exactly gave rise to the bump in advertising demand? The growth happened at least in part because Twitter is rolling out more features for advertisers. One example: a video tool. Per their shareholder letter, Twitter has launched a prediction model that projects the likelihood a viewer will watch a video to completion, a feature meant to meet the needs of advertisers who prioritize video completion rates. A “15-second (15s) view” bidding unit powered by the prediction model gives precedence to engaged views; according to Twitter, “Early testing has shown that [the bidding unit] drives Twitter’s highest video completion rates yet.” The data does look good: advertisers using the 15s view bid unit are seeing an 89 percent higher completion rate, at an average 25 percent lower cost per completed view.

Strong User Growth

Of course, advertisers don’t want to be on a platform unless they know a lot of people are going to congregate there; they want those eyeballs. Twitter, like any company, has to roll out new features to entice people to visit—and linger. Twitter understands this, and their actions reflect that understanding. Per CNBC, “In the [second] quarter Twitter introduced its first subscription service, which gives users access to an Undo Tweet button and other features.” Named Twitter Blue, the subscription service is meant for “power users” who are happy to pay a monthly fee in exchange for exclusive features.

Taking a cue from the success of Clubhouse, Twitter also released its Spaces live-audio chat feature on mobile devices for all users with at least 600 followers. On Spaces, users can join virtual rooms and engage in real-time audio conversations with others. In addition, a new Tip Jar feature will enable users to send money to creators on Twitter.

Notably, the new features have the potential to appeal to brands as well as individuals: consider the fact that Twitter recently signed a deal with the NFL to use Spaces commercially. The league has committed to producing content: more than 20 Spaces, or rooms, that will air around events like the draft and Super Bowl. Per Marketing Dive, the NFL “is the first sports league to offer sponsored Twitter Spaces to brands.”

News Source

It’s also worth noting the connection between Twitter and the news. In fact, brands interested in the news-oriented world are wise to consider Twitter as part of their paid social strategy. As reported by Black Bear Design, Twitter is one of the most popular platforms on the planet: 24 percent of online adults use this microblogging service. And a whopping 86 percent of Twitter users indicate that they visit the network to get their news fix, with almost three quarters of those individuals doing so every day.

Contact True Interactive

In short, Twitter keeps on finding ways to stay relevant. Is the platform a good partner for your brand’s reach? Contact us. We can advise. Learn more about our expertise with social media platforms here.