By Adam Fraser
A recent piece of research from Edison Research highlighted some interesting insights around the podcast market.
The 2016 Podcast Advertising Study is the latest piece in a series of research Edison have performed on the podcast sector. The trend in their reports shows a notable increase in interest from US consumers in podcasting.
There is a lot of information in the report, but the 5 stats which caught my eye were:
- For the first time a majority of Americans have heard of podcasting – 55% are now “aware of the term” versus 49% a year ago
- One in five Americans now listen to a podcast monthly (21%)
- Mobile is a key medium for podcasting – 71% now listen to podcasts on a mobile device versus only 42% 3 years ago
- Podcast listeners are more likely to follow brands on social media – 47% of podcast listeners do, versus 28% of general US consumers
- Podcast advertising influences brand preference – 65% of podcast listeners are more willing to consider products and services after they learn about them on podcasts.
Whilst the US often leads the globe in trends of this nature I would expect the broad pattern of increasing podcast adoption (albeit likely off a lower base) to be replicated in the Australian market.
By Adam Fraser
Another quarter, yet another powerful set of results from the world’s biggest social network. This blog post intro writes itself each quarter such is the consistency of performance!
If you want to dive into detail, you can find the detailed financials, investor presentation and management conference call. For those without the time to digest all of this, here are 10 key soundbites from the results:
- Monthly active users have reached 1.78bn from 1.71bn last quarter (4.4% growth) and 1.54bn a year earlier (15.7% growth)
- Daily active users hit 1.18bn from 1.13bn last quarter (4.5% growth) and 1.00bn a year earlier (17.1% growth)
- Almost 93% of MAUs and DAUs accessed Facebook via a mobile appliance with 59% of MAUs exclusively using a mobile
- Mobile DAUs approached the 1.1bn level and Instagram has over 500m monthly users (noting 100m per day are now using Instagram stories)
- On the investor call Mark Zuckerberg confirmed Facebook’s internet.org project has now connected 40m people to the internet, up from 15m people a year ago
- Total revenue was $7.0bn (exceeding market expectations) versus $6.4bn in Q2 (8.9% increase) and $4.5bn a year earlier (55% growth) – generating a net profit of $2.4bn
- Facebook has reasonably balanced global spread with around 50% of revenue coming from USA and Canada
- Average revenue per user exceeded $4 for the first time, up from $3.82 last quarter and $2.97 a year ago
- Facebook ended the quarter with a cool $26bn in cash – enough to buy Twitter twice
- Some interesting random stats: the Olympics drove 1.5bn interactions across the network, there are now over 30,000 messenger bots plugged into the Facebook Messenger API, Instagram has over 500,000 active advertisers and Facebook Workplace is being used by over 1,000 organisations
“We had another good quarter,” said Mark Zuckerberg, Facebook founder and CEO. “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”
Another sensational set of quarterly results.
By Adam Fraser
- Authoritative content that answers popular questions, such as ‘what is ..?’
- Strong opinion posts and political posts
- Content that provides original research and insights
- Content that leverages a trending topic but that also provides practical insights
- Authoritative news content on new products or developments
By Adam Fraser
Whilst stats about global user numbers for the main social networks are reasonably accessible, it can be quite a challenge to source Australian specific user numbers.
Hence I am grateful for the work done each month by SocialMediaNews.com.au who release a monthly analysis on local user numbers.
Whilst the numbers in the table below may not be perfect (global numbers have some mismatches in whether monthly or daily users disclosed; local numbers based on certain assumptions), it is interesting to analyse the trends in Australian social media user numbers versus the global patterns.
The table below summarises the best available information on global and Australian social media users; the ratios show Australian users as % of that network’s global users, as well as a % of the total Australian population of 24.25m:
|Worldwide users (millions)||Australian users (millions)||Share of Global Users %||Share of Australian Population %|
Some interesting take-outs:
- As it does in so many “league tables” on social networks, Facebook leads the way – more Australians use Facebook than any other social network, with 62% of all Australians using the platform
- Australians are passionate YouTubers; the highest share of Australian/Global users is YouTube; the lowest shares are Pinterest and WhatsApp
- Despite the hype, there are still more Australian Twitter users than Snapchat users
- Whilst WhatsApp’s share of global users is at the lower end of the table, in absolute numbers, it exceeds Twitter and Snapchat
- Instagram remains a very important social platform, ranking third in users globally and fourth within Australia
- Both globally and in Australia, Pinterest seems to be getting relegated to “niche specialist” rather than “global powerhouse”
As an overall takeout, the table probably fairly summarises Australian’s position in worldwide social media adoption; a deep, relatively mature market but niche in the global context and slightly behind the USA and the UK in terms of broader business adoption.
Excellent interview; thanks @johnsmibert and Adam Fraser! Business strategy should drive social strategies! http://buff.ly/2eZ44x5
— Tamara Schenk (@tamaraschenk) November 2, 2016
By Adam Fraser
Twitter has released its Q3 2016 results to the stock market.
Nothing spectacular but a solid set of results, with moderate growth in revenue and users, and an announcement around job cuts to drive better future financial performance. The stock market liked what it saw with shares increasing around 5% when the results were announced.
If you want to dive into all of the detail, you can check the financials, investor presentation (also broadcast via Periscope!), shareholder letter and investor conference call. If you want the key highlights here are 10 key takeaways:
- Monthly active user (MAU) numbers grew slightly to 317m from v 313m last quarter (up 1.3%) and 307m a year ago (3.3% growth); the steady growth is encouraging but the pace remains insignificant compared to other social networks – Facebook continues to grow in the tens of millions while Twitter crawls in single digits
- 21% of Twitter’s MAUs (67m) are based in the USA; user numbers in the USA are broadly flat with most of the growth coming internationally
- Attempts to drive greater engagement and more regular usage on the platform are working, with Daily Active Users growing at 7% on prior year v 5% last quarter and 3% in Q1
- Mobile MAUs were 83% of users, indicating Twitter sits in between Facebook ( 90%+ mobile users) and LinkedIn (approx 60% mobile users) for mobile penetration
- Revenue at $616m was 2.3% up on the prior quarter of US$710m and 8.3% higher than a year ago; this exceeded market expectations and the shareholder letter detailed a number of areas where the ad platform was working better
- The breakdown of revenue for the quarter was broadly consistent with recent periods, with just under 90% of revenue coming from advertising and circa 10% coming from data licensing/other (the ‘big data’ aspect has huge potential for Twitter). Video ads are the most popular and effective form of ads on the platform
- Total ad engagements grew 91% year-over-year
- Twitter made a loss of US$103m for the quarter but also discloses “adjusted EBITDA” which showed a profit of US$181m after adjusting for stock based compensation, depreciation and amortisation. Twitter ended the quarter with US$3.6bn in cash.
- Live streaming video represents a key strategic growth area for the business; audience numbers for Thursday Night NFL games (3m viewers) and the Presidential debates (3.3m viewers) have been encouraging; Twitter has signed more than a dozen live streaming partnerships with the Melbourne Cup this week streamed in Australia for the first time
- Making it easier for new users to sign up and understand the platform remains a key focus: to this end, the service is being refined in 4 key areas being onboarding, home timeline, notifications and tweeting
With steady growth, cost rationalisation (9% of the workforce will be cut) to stabilise financial performance and some exciting developments in streaming video, this was a reasonable set of results from Twitter. However with underlying losses and the continuing strength in other social networks (Facebook and Snapchat in particular) leading to fierce completion for ad spend, challenges remain for the network everyone loves to talk about. Jack’s influence has been a positive one since he came back as CEO a year ago, but the takeover rumours will continue with overall performance (and the market cap) at these levels.
A tool to use to gain credibility and trust.
“Podcasting is a tool that can give salespeople an edge?” – Interview with John Smibert
Adam joins John Smibert to talk about the use of podcasting as a tool for sales. See the full interview here.
By Adam Fraser
I was lucky enough to attend a recent conference run by Brandwatch in the UK – Now You Know Europe.
Brandwatch is the worlds leading social intelligence company (with whom EchoJunction partners in the Australian market) and the conference provided a fantastic update into both future developments in the Brandwatch platform as well as social intelligence trends more broadly and case studies of brands effectively using social listening,
So many insights in a jam packed 2 days, but my 5 headline take aways were:
- Social listening is maturing; in the early days it was all about tracking brand mentions (something which of course remains important) but the leading brands are now also using social listening as a form of market research to deepen understanding of customer insights and customer psychology. This could relate to the brand but also more general topics of consumer interest (eg buying a first home, drinking coffee, eating ice cream, 5G technology, Brexit etc). Some great case studies were presented around this.
- Image recognition is coming and will be an increasingly important aspect of social intelligence in the future. The entry level technology has arrived (but remains of limited value today) – the ability to bring up image recognition (eg brand logo) as well as valuable context is the challenge, and Brandwatch is planning on adding this capability to its platform in early 2017
- Social media is evolving to a more private environment (as I previously discussed) – a world of 1:1 or 1:few rather than everything being public. Clearly this represents a challenge for the industry as a whole.
- Never confuse correlation with causation – lots of sessions with big data analytics specialists dissected this topic and showed why high quality, specialised analytics capability is critical to extract maximum value from social intelligence
- Data merging – some of the best brand examples came where social data was being blended with other data – whether internal (eg sales, CRM etc) or external (e.g weather, political, economic indicators) to derive business insights of demonstrable value.
The Brandwatch blog has a much more detailed commentary around many of the presentations and I highly recommend you have a browse.
By Adam Fraser
Facebook is making a serious play in the business arena.
Its presence to date in the workplace has largely been via staff looking at their personal Facebook pages, but a year ago it launched “Facebook at Work”.
Having tested Facebook at Work with over 1,000 organisations over the past year, it is now making the service open to all businesses, and has renamed the service Worplace.
The application brings many of the features from the main Facebook platform which users will be familiar with – newsfeed, groups, live, chat and trending posts – as well as new features such as dashboard analytics and easier integration with other IT systems.
Collaboration features also allow working groups to be formed with people outside the organization.
It’s an interesting move from Facebook and partly encroaches on the worlds of many other enterprise platforms operating in the communication and productivity space (think LinkedIn, Microsoft and Salesforce) . Priced at $1-$3/user it’s an important diversification for Facebook away from its current advertising dominated business model.
Incumbent players will be looking nervously over their shoulders – the 800 pound gorilla has made its move and it seems to be serious about its aim to penetrate the workplace enterprise software market.
By Adam Fraser
Twitter is many things to many people but I have long focused on the customer service aspect around Twitter’s functionality.
As previous podcast guest and well known author Joseph Jaffe said:
“It is the greatest customer service tool ever created bar none. And nothing else on Twitter makes sense in my opinion.”
To understand the impact of customer service interactions on customer relationships, Twitter designed a research study in partnership with Applied Marketing Science to figure out the potential revenue benefit to businesses who help their customers via Twitter. The results showed some demonstrable benefits of effective customer service on Twitter.
Some of the key findings were:
- When a customer Tweets at a business and receives a response, they are willing to spend 3–20% more on an average priced item from that business in the future
- Customers are 44% more likely to share their experiences—both online as well as offline—after receiving a response from a business on Twitter
- Customers are 30% more likely to recommend the business, and respond an entire point higher (2.66 vs 3.66) on customer satisfaction surveys
- It pays to reply rapidly. When an airline responded to a customer’s Tweet in less than six minutes, the customer was willing to pay almost $20 more for that airline in the future. Similarly, in the telco industry, customers are willing to pay $17 more per month for a phone plan if they receive a reply within four minutes, but are only willing to pay only $3.52 more if they have to wait over 20 minutes.
- 69% of people who Tweeted negatively say they feel more favorable when a business replies to their concern. (HT to Jay Baer re his book Hug Your Haters)
- Aspect Research found that consumers like coming to Twitter because they perceive it as significantly less frustrating than other customer service channels – even preferring it slightly more than in-person interactions.
Whilst clearly Twitter’s research is self serving, it confirms my fundamental belief on the importance of social listening and social response as foundation aspects of any enterprise social media strategy.
By Adam Fraser
Facebook and Publishers. Happily married? Or just staying together for the kids?
The journey has been an interesting one. Lured by the gateway drug of (free) organic reach to access consumers with their content, (which was subsequently choked via various algorithm tweaks), many publishers jumped fully into bed with Facebook via Instant Articles – publishing directly on Facebook rather than their own platforms. The temptation of the massive audience Facebook can offer (over 1.7bn monthly active users), with a revenue share, proved too great for many. Owned land was abandoned. Rented land was seized.
Alas the honeymoon is well and truly over in this somewhat forced marriage between Facebook and traditional publishers. Further algorithm changes have again hit publisher reach on Facebook, and the shared ad revenue has not been as significant as hoped. With Facebook and Google now utterly dominating the online advertising sector, it’s increasingly clear where the power lies.
An interesting opinion piece in the Guardian “Why Facebook is Public Enemy Number One for Newspapers and Journalists” took this issue further by questioning whether the entire future of journalism was at risk from Facebook’s dominance.
It is a thought provoking article, well worth a read. One extract in particular drives home the point:
“Facebook’s increasing dominance over advertising is causing the laying off of journalists, the people who produce the news that it transmits to its users. The logical conclusion to that process is not only the destruction of old media, legacy media, mainstream media, whatever you want to call it, but the end of journalism as we know it.”
Heavy stuff. The implications are broader for society as a whole as competition lessens in the news media space, with millennials increasingly getting their news via Facebook (algorithmically determined by Facebook).
Media control (and any perceived media bias in news reporting) is not a new phenomenon. Facebook has truly disrupted many aspects of the media sector with many positive impacts. The market has talked. The unintended consequences of the fall out from this for news consumption and independent journalism are still to play out in full.