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.

Why and How Instagram Is Leaning into Video

Why and How Instagram Is Leaning into Video

Instagram Social media

Instagram isn’t just about the photos anymore. As reported in The Verge, the social networking service is embracing entertainment and video in a bid to stay competitive with platforms like TikTok and YouTube. This isn’t the first time Instagram has gone head-to-head with TikTok: as we’ve blogged, Instagram launched Reels last August as a means of connecting with TikTok’s Gen Z audience. What do these new changes mean? Read on to learn more.

Not Just For Square . . . Photos

In a video posted on his Twitter and Instagram accounts, Instagram head Adam Mosseri explained that the platform no longer wants to be identified as a “square photo-sharing app,” rather as a hip general entertainment app driven by video — and algorithms. Mosseri says focus is on four key areas:

  • Creators, where Insta’s recognition of “the shift in power from institutions to individuals across industries” underlines Instagram’s desire to empower its creators.
  • Video, which is, as far as Mosseri is concerned, where it’s at. As he notes, “Video is driving an immense amount of growth online for all the major platforms right now.” His message: Instagram users have spoken. They want to be entertained. To stay relevant, Instagram is making video a tentpole of its offerings. Mosseri promises changes along the lines of users getting full-screen, recommended videos in their feeds, including videos from accounts a user may not already follow.
  • Shopping, to reflect the leap commerce has made from offline to online, a change accelerated by the pandemic.
  • Messaging, to honor the way close friends keep connected now — not by Feed and Stories, as has been the case in the past.

Reactions So Far

Reactions to Mosseri’s announcement have been mixed. Journalists are saying Instagram is responding to the rise of TikTok and YouTube, but as noted in Axios, warn that “[a]s social networks continue growing, they run the risk of overwhelming consumers and losing what made them special and distinct to begin with.”

And while Mosseri specifically names creators as a priority in his video, some creators, specifically photographers, are feeling marginalized and voting with their feet: Digital Photography Review reports that some photographers are defecting to Twitter in order to share their work in a space they feel is more dedicated to their art. Photographer Bryan Minear is a case in point. “In my eyes, Instagram stopped caring about artists and independent creators a long time ago,” he says. Minear, who switched to Twitter as his primary social media outlet in 2019, has found a vibrant photography community there.

Although Mosseri later tried to retract some of his wording — “We’re no longer a photo-sharing app or a square photo-sharing app” drew particular ire — his initial statement has aggravated photographers who feel an algorithm championing entertainment doesn’t put a premium on quality. “Instagram has done nothing but promote video-centric features at the expense of still photographers,” Minear says. “They’ve made it loud and clear that we aren’t welcome anymore.”

What Advertisers Should Do

What does all this mean for your brand? Is this “new” Instagram a good fit? We recommend that you:

  • Re-examine how you use video in your marketing and advertising. Clearly, video is getting bigger: 86 percent of businesses use video as a marketing tool, and 93 percent of marketers who use video say that it’s an important part of their marketing strategy. Instagram is showing where its allegiance lies. If video makes sense for you, Instagram might just be a viable advertising platform for you.
  • Consider the different ways influencers on Instagram are using both video and imagery as you find influencers to partner with. Who does a great job with video? Are they the right fit for your brand?

Contact True Interactive

In short, video is hot. Trying to figure out how to embracing video in your online advertising and marketing? Contact us. We can help.

How Snapchat Keeps Innovating with Augmented Reality

How Snapchat Keeps Innovating with Augmented Reality

Social media

As we’ve blogged, Snapchat has been demonstrating a profound appetite for investing in augmented reality (AR). It could even be argued that Snapchat is the most AR-driven platform out there, continuing to reimagine what AR experiences might be on mobile and beyond. Let’s take a look at how Snapchat is leading the pack when it comes to AR innovation.

AR: the “Ace in the Hole”

AR is such an area of strength that it might be considered Snapchat’s “Ace in the Hole.” As Medium observes, “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.”

Snapchat Data

Recent Developments with AR at Snapchat

That’s a message Snapchat has energetically promoted, and underlined with a commitment to new AR features. Consider the following additions:

  • The Connected Lens allows two Snapchat users to share an interactive AR experience, whether they are sitting side-by-side in the same room or located miles apart from one another (in a demo, Snapchat partnered with Lego to show how two people can build a virtual Lego set together using the AR lens). In a post-pandemic world where social interaction has become a sort of Holy Grail, AR facilitates connection. And that makes AR more relevant than ever right now.
  • Snapchat has also worked to improve Scan, its built-in visual search tool. Scan, which helps users ID everything from songs to car models, now has a new feature, Screenshop, which recommends clothing purchases based on photos of outfits.
  • Snapchat also hasn’t forgotten the importance of sometimes . . . just having fun. The Cartoon 3D Style by Snapchat lens scans your face and then imposes upon it a 3D cartoon look — as if the user has just stepped out of a Pixar film. The lens uses AR technology, and results are impressively realistic.

Calling All Creators

Snapchat isn’t just expanding its AR features willy nilly; its investment in AR is informed by the desire to grow a vigorous creator community. It does this by giving creators useful tools—and the possibility of rewards.

Consider the standalone iOS app, Story Studio, which provides a suite of vertical video editing tools. Or the new Gifting feature, which attracts creators with the promise of monetization. Gifting gives users a way to tip their favorite Snap creators. Also new: a Creator Marketplace, which allows businesses to locate and pair up with Snapchat creators. 

AR Platform for Brands

So, are businesses spiking an interest? There’s certainly reason to: according to Medium, Snap has said its users “are two times more likely to make purchases if they have interacted with a product via AR lens than not.” That’s a powerful incentive for brands.

 

Snapchat data

Some, like Estée Lauder, have already risen to the challenge. According to Medium, the cosmetics giant has been recognized as “one of the first companies to integrate their product catalog through Snapchat’s API, which makes it easy to create and publish new Dynamic Shopping Lenses that include price, availability, and a path to purchase.” Other brands that have successfully employed AR try-ons and shoppable lenses include Gucci, American Eagle, and the eyewear brand Clearly.

What Should Advertisers Do?

Could your brand likewise benefit from a partnership with Snapchat — and an exploration of AR? Ask yourself the following:

  • Might AR provide some fresh opportunities for your advertising? If so, Snapchat is an excellent platform to try it on.
  • What do you know about AR? According to Threekit, a tiny one percent of retailers are currently using AR or virtual reality in their customer buying experience. And yet a whopping 61 percent of consumers indicate that they prefer retailers that incorporate AR experiences. Does it make sense for your brand to get in on the ground floor?
  • Finally, are you hoping to reach the Millennial and Gen Z audiences? The Threekit stats also note that 70 percent of consumers aged 16 to 44 are at least aware of AR. Snapchat — and AR — can be a meaningful way to reach this group.

Contact True Interactive

 AR can be a powerful go-to in a brand’s toolkit. Contact us to learn more. We can help.

Why Twitter Spaces Matters to Brands

Why Twitter Spaces Matters to Brands

Social media

Social audio is here. In an era of social isolation brought on by the constraints of Covid-19 living, the sound of the human voice has become a profound balm. And the resultant success of live audio apps like Clubhouse has inspired other platforms to create their own alternatives to voice-based connection. Twitter’s take on the audio phenomenon? Spaces.

What Is Twitter Spaces?

Described by Twitter as “a small experiment focused on the intimacy of the human voice,” Spaces is similar to Clubhouse in that it allows users to create their own audio chat rooms and be part of rooms created by others. Conversation topics run the gamut, covering everything from popular culture to tech.

How does Spaces distinguish itself? It could be argued that some differences are purely semantics: users join “Spaces” rather than “Rooms,” for example. But Spaces has also emphasized the fact that anyone and everyone can join the app, a contrast to Clubhouse’s invite-only model. In a given Space, hosts make the choice of who to invite to a conversation. Each Space allows up to 11 people (including the host) to participate in the chat; the number of listeners allowed is unlimited.

At the moment, Spaces remains in beta mode, but Spaces is expected to open up for general use soon.

Why Twitter Spaces Matters

Twitter Spaces matters because it’s part of a larger trend: the rise of social audio. When a big player like Twitter leaps into the field with its own contribution, that’s a sign a movement has legs—that social audio is being viewed as more than a passing fad. In fact, social audio has been steadily gaining traction for a while now: according to a Nielsen report, audience use of streaming audio jumped from 50 percent to 64 percent between the first quarter of 2019 and the first quarter of 2020. Then Covid-19 happened, and social distancing. Voice-based connection became even more welcome.

Twitter Spaces is important for another reason: it could threaten Clubhouse as the reigning king of social audio. Consider Twitter’s slate of new resources, like direct payment service SuperFollows, that might be particularly attractive to business owners. SuperFollows makes it possible for Twitter users to charge to view special tweet content, and also serves as a way for users to sell books, how-to videos, and other media. As noted in CMSWire, “These features can be combined to entice people with a consolidated platform that favors Spaces over Clubhouse for their own business.”

How Might Brands Get Involved?

Because social audio platforms are a relatively new phenomenon, the opportunities for brand involvement are still evolving. But it’s already clear that apps like Twitter Spaces create a favorable place to:

  • Gain audience feedback on your brand. The digital format reaches a wider audience, even as the audio component facilitates a genuine back-and-forth exchange.
  • Host discussions on topics relevant to your industry. Using apps like Twitter Spaces, you might invite a group of people to conversations that position you as a thought leader. (It’s also worth noting that creating a Space is easier and more cost-effective than organizing an in-person gathering.)
  • Network with other experts in your industry. By participating in conversations germane to your industry, you’ll be rubbing shoulders with other experts, in so doing enjoying an opportunity to share information and generate leads.

What Brands Should Do

Like any new app, Twitter Spaces reminds brands of what they can do to maximize digital potential. We recommend that you:

  • Treat Twitter Spaces as a focus group to learn from.
  • Get your own people involved in the platform—creating their own conversations and also understanding what topics are trending in other Spaces. (While Spaces is in beta mode, people cannot create conversations unless they have access to Spaces, but they can listen to them. However, Spaces will open up for general use soon.)
  • Take this opportunity to get your Twitter house in order. Make sure you are engaging on Twitter and building your brand there. Your involvement in Spaces will likely draw attention to your own Twitter account. Make sure your Twitter is ready for increased attention.

In short, be ready for when brands can really play on Twitter Spaces!

Contact True Interactive

Interested in social audio but not sure where to start? Contact us. We can help.