The final 2012 quarterly results are in for social network giant Facebook and it seems that users are becoming increasingly more mobile than ever when checking in, updating their status and posting random thoughts. New figures show mobile daily active users outweighed desktop daily active users for the first time in last year’s fourth quarter.
Releasing its results for Q4 2012, Facebook also reached 1.056 billion users in the three months to December, a 25% year-on-year increase from Q4 2011.
The largest increase of users emanated from Asia, most notably Japan, while global daily active users grew to 618 million, a 34 million increase from last quarter.
Facebook reports that some 680 million of its monthly active users use mobile devices, an increase of 248 million since Q4 2011 (57%).
On the move and connected, exploring the world for business or pleasure – that’s the new status quo for Facebook users. It’s a capture-everything-around-you type mentality. Around 157 million of those monthly active users are mobile only – a 108% increase year on year.
Principal analyst at Ovum, Eden Zoller, believes that Facebook has accelerated and revamped its mobile presence in order to bring back the advertisers after key players, General Motors and Kia, lost faith with its online advertising last year.
“Mobile is helping boost advertisers’ interest in the social network,” says Zoller.
“What stands out from Facebook’s Q4 results is the centrality of mobile for its service strategy and growth. Revenues from mobile advertising accounted for 23% of total advertising revenues compared to 14% in the previous quarter, with sponsored stories in the mobile news feed and app install ads proving effective,” she adds.
Over the next quarter, it will be interesting to see the effect brought about by the recently-announced Graph Search, the feature Zuckerberg and Co. will be hoping attracts increased advertising dollars via sponsored search.
The recent float of Facebook has brought into focus a number of questions about the effectiveness of marketing through social media. Marketers are asking, “How does social media actually fit into our marketing effort?” and, “Does social media marketing actually work?” These questions are exactly what should be asked as they get to the heart of a social media, and broader, digital marketing strategy.
The recent news that US-based General Motors has ceased its $10 million Facebook display advertising provides a great example of marketers not asking these questions early enough. So what went wrong? The General Motors Facebook page starts to tell the story. Once you land on their page there is a lot of great content. There are some well-produced videos, some great images and the timeline has been well developed to tell a story around their brand. Facebook users are engaging with GM and the brand is being well managed. However, there is nowhere obvious to sign up for a test drive, nowhere to get in contact. In short, there is no clear conversion goal. So no matter the investment in advertising, it is unlikely they would see an impact on sales without a connected conversion process to back it up. Even if they directed Facebook clicks to another destination outside of Facebook to address this, it is unlikely to be successful. Users don’t like to leave Facebook during a session.
What GM failed to do was to understand where Facebook fits into broader social media campaigns and overarching marketing frameworks. It is a common mistake. The regular attention that social media demands means brand building, corporate communications, customer service and customer acquisition can get confused. These different organisational objectives are often run in separate departments, and can be poorly integrated. The problem is the customer doesn’t care about these differences. They perceive a brand as a single entity, and they expect a cohesive message.
A well developed social media strategy defines what your customer will be doing when they get to your page and what they expect. It also understands what frame of mind they will be in. Think of it in terms of awareness. Traditional marketing works well close to the time of purchase (unless you can spend a lot on broad spectrum branding), search works well when your market is researching a product, and social works best before any of this. The customer may not be thinking about making a purchase, but you can capture their information and begin to lead them down the right path, meaning that by the time they get to Google they are searching for your brand, not your category. This means spending less on search, display and above the line marketing. You may not replace them but you can spend wiser.
This is why spending the time and money to develop a quality social media strategy is so important. It defines why you are investing in social media, what you are expecting the audience to do, the most valuable data to collect, the way to measure success, and how you are going to convert interest into sales.
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The roll call for Super Bowl ad slots has been finalised, and doesn’t disappoint with a who’s who of American pop culture including Jerry Seinfeld, Jay Leno, Matthew Broderick, The Pussycat Dolls, supermodel Adriana Lima, Donald Trump and David Beckham.
Super Bowl 2012’s commercial break entertainment will be characterised by dogs, almost 20 separate car-related ads and first-time showings from auto brands Acura and Lexus. Also making an appearance is tax-prep software 2nd Story, real estate giant Century 21, yogurt maker Dannon and retail clothing chain H&M.
Old stalwarts Coca-Cola, Anheuser-Busch, CareerBuilder, E*Trade, Go Daddy, Mars and Volkswagen are reported to have booked spots for the big game also.
The game’s exclusive beer advertiser, Anheuser-Busch, is dedicating the first two of its six Super Bowl ads to Bud Light Platinum, a new higher alcohol line extension aimed at younger, urban drinkers who have abandoned beer for spirits, according to AdAge.
Coke is bringing back the polar bears and taking a contextual approach this year, deciding which ad to run in its second-quarter slot once it sees which team is winning.
The pre-released videos below include full ads, teaser spots for what will be 30 second ads, and extended versions, such as the Star Wars dog choir which will not even be in Volkswagen’s ad (The actual ad is top secret, with the company under pressure to outdo it’s wildly popular ‘The Force’ from last year).
Ed’s note: In a first for Marketing this edition of the Top10 features 13 items (It’s best not to over-think these things).
Acura
Agency: rp&, Los Angeles
This extended version of Acura’s 60-second spot features Jerry Seinfeld and a cameo by Jay Leno. Seinfeld is trumped by Leno at the last minute, in his attempts to bribe a man who’s ahead of him on the waiting list for an Acura NSX.
Audi
Agency: Red Tettemer + Partners, Philadelphia
This teaser spot introduces a 30-second ad for real estate giant Century 21 that will air in the third quarter. Starring Donald Trump, Deion Sanders and Apolo Ohno, it will sing praises to the skill of Century 21’s agents.
Century 21
Agency: Red Tettemer + Partners, Philadelphia
This teaser spot introduces a 30-second ad for real estate giant Century 21 that will air in the third quarter. Starring Donald Trump, Deion Sanders and Apolo Ohno, it will sing praises to the skill of Century 21’s agents.
Coca-Cola
Agency: Wieden + Kennedy, Portland, Oregon
The first Coca-Cola ad of the night, featuring two polar bears barracking for opposing teams, is reported to be airing in the first quarter. It will be followed by one of two different 60-second commercials in the second quarter, depending on which team has the upper hand.
Doritos
Agency: None (consumer-generated)
Doritos’ ad was taken from the top-voted out of five finalists in the brand’s ‘Crash the Super Bowl’ contest.
General Motors
Agency: Goodby, Silverstein & Partners, San Francisco, and Fallon, Minneapolis
The above ad preview for the Chevy Camaro will accompany another spot for the Cadillac ATS sport sedan.
Go Daddy
And:
Agency: In-house
Go Daddy has a very clear target market. Two 30-second ads are expected to run, one starring a naked woman being painted with body paint (which concludes by directing viewers to the uncensored online version) and the other starring the Pussycat Dolls. The messaging promotes .co domains.
H&M
Agency: In-house
Apparently women are still the underwear purchasers in American relationships. Starring David Beckham and his Bodywear collection for H&M, this commercial is expected to air during the second quarter.
Honda
Agency: RPA, Santa Monica, California
At 2:25, the extended version of Honda’s 60-second ad for the fourth quarter is rather long. The ad stars Honda’s CR-V compact crossover and Matthew Broderick as Ferris Bueller.
Samsung
Agency: 72andsunny, Los Angeles
This teaser spot for the tech company’s Super Bowl spot seeks to introduce the phrase ‘You’ve been Samsunged!’ into the public’s vocabulary. Two spots are reported to be booked, one plugging the Galaxy S II and the other knocking Apple’s iPhone.
Skechers
Agency: Siltanen & Partners, El Segundo, California
Skechers have dropped Kim Kardashian for a dog. The 30-second spot puts a French bulldog in sneakers to outrun some greyhounds at a dog track.
Toyota
Agency: Saatchi & Saatchi, Los Angeles
Toyota is running two 30-second slots for the 2012 Camry. They feature a reinvention theme, developing the concept by showing improved versions of people and things, such as ‘the reinvented police officer – he’s also a masseuse’.
Volkswagon
Agency: Deutsch, Los Angeles
This teaser spot features a canine chorus in follow-up to Volkswagen’s runaway 2011 Super Bowl success, ‘The Force’. The actual 60-second ad will not feature the canine chorus, but will be dog-themed to promote the 2012 Beetle.
Speculation is rife about a potential Facebook IPO rumoured to be taking place sometime this week in what’s being called a defining moment for the internet.
The Wall Street Journal reports that ‘people familiar with the matter’ have said the IPO could come as early as tomorrow in the US. These sources also said that Facebook executives were considering filing in a few weeks’ time or sometime between April and June, so only time will tell.
Facebook is yet to comment on the rumours, however, according to Mashable the social network has shown signs of preparing for public offer having halted its trading in secondary markets for three days last week and is pushing to get Timeline and other product offerings in place. On its blog, Facebook announced that all users will be forced to adopt the Timeline layout in the next few weeks.
Mashable says that, “If and when Facebook does file its S-1 paperwork, it will be forced to enter a ‘quiet period’ – without product announcements, interviews or any other public statements.”
The social network has still given no word though on when Timeline will be rolled out for branded Pages, which has been slated as a creative way for advertisers to engage in social media campaigns.
The Facebook float would be the largest tech IPO in history, anticipated to value the company between US$75 and US$100 billion, well above Google’s post-IPO valuation of US$23 billion in 2005.
It’s reported the company could raise as much as $US10 billion from the IPO, well ahead of the capital raised by tech’s largest IPO to date – $5.9 billion in 2000 by German-based Infineon.
According to The Wall Street Journal, a $10 billion Facebook offering would rank fourth among IPOs for US companies behind Visa, General Motors and AT&T Wireless, and value the social network on level pegging with McDonald’s.
The WSJ says Facebook increased its global advertising revenue from $738 million in 2009 to $3.8 billion in 2011. Data released overnight by comScore shows the social network increased its share of the display ad market, up to 27.9% in 2011, compared with 21% in 2010.
Principal analyst at Ovum, Eden Zoller, says Facebook’s goal is to become the centre of people’s digital lives, and the dominant platform for rich communications, commercial content and advertising.
“Facebook’s user base continues with its impressive growth trajectory which should comfortably pass the one billion mark this year, with particular opportunities to build the base in emerging markets and to extend its reach via mobile devices,” Zoller says.
“The challenge, and it is a big one, is whether Facebook can keep its users active and engaged in a context where Google is pushing hard into social media and many home grown social networks are looking to up their game, notably in China.
“The money raised from the IPO will give Facebook more resources to invest in acquisitions, service innovation and advertising analytics.”
Homepage image derived from this image courtesy Guillaume Paumier / Wikimedia Commons, CC-by-3.0
Marketingmag.com.au chats to Janina Geraghty – marketing and web coordinator at the Paul Wakeling Motor Group. If you
would
like to see a certain
marketer profiled, please email your suggestion to Kate Kendall, online
editor, on kate.kendall@niche.com.au.
1. What do you do?
I’m the marketing and web coordinator at the Paul Wakeling Motor Group. The Group incorporates three locations, 12 new and four used car dealerships and three service and parts centres. I report directly to the managing director and my job description includes coordinating advertising, organising events, website maintenance, social media marketing, creating newsletters, direct mail, promotional material, CRM and the list goes on and on.
2. What was your first job?
As soon as I was old enough, I got a part-time job as a ‘check-out chick’ at the local Kmart. My sister got a job at Cut-Price Deli next door and I remember her being furious as she watched me fall asleep at my register while she slaved away slicing, wrapping and cleaning for almost half my wage.
When I left school I hit the big city and got a clerical job at an insurance company. I worked in the insurance industry for most of my career between having babies.
3. What did you study?
I completed my Associateship of the Australian Insurance Institute while I was expecting my first child, did a couple of short courses at TAFE, but it has only been recently that I have become seriously interested in further education. I started a Bachelor of Business (Marketing) degree at UNE last year, studying part-time by distance education. It’s not easy getting back into study, but I’m not putting any unnecessary pressure on myself.
Although I’m enjoying formal study and see the value in it – I’d have to say I’ve learnt a lot looking over people’s shoulders, reading, asking lots of stupid questions and making mistakes.
4. Describe a typical day?
My day starts about half an hour after my alarm has gone off, then its full steam ahead. I get myself and my four school-aged kids ready, stop them from killing each other in the car and deliver them to school (roughly) on time.
After checking the backseat to make sure I haven’t forgotten anyone, I proceed to work.
Once in my office, I check my emails, news, analytics and manufacturer programs over a coffee before tackling whatever the day and inbox brings. A lot of my time is spent online maintaining our sites and accounts on social networks as well as liaising with our advertising agency. There’s always something on the go, whether it be the opening of a new showroom, launch of a new car or our Wakeling’s Women on Wheels program that keeps me occupied.
After work, I go home to dinner my husband has cooked (I don’t like cooking!). We still manage to eat dinner together at the table with no TV as it’s probably the only time we are all together. Following dinner the evenings can vary from watching TV, playing Wii with the kids, studying or hanging out in the kitchen with my husband as well as some housework and preparing for the next day. Naturally I’ll be tweeting in between and usually right up till I go to sleep thanks to my beloved iPhone.
5. What is on the agenda for the next year?
Personally, as well as my studies, I want to write more. I have been doing car reviews for Autochic.com.au, which I have enjoyed immensely and am about to start my own blog.
Professionally I am excited about managing the redevelopment of the group website as well as a few other upcoming projects. Despite the economic climate and negativity in the media, this really is an exciting time for the auto industry.
6. What brand do you love the most? Dislike the most? Why?
Working in a dealership you work with a lot of wonderful big car brands. My favourite brand is Holden. I admire that the brand has entrenched itself in the Australian way of life. Just as you can identify yourself as either a Vegemite or peanut-butter household, regardless of what brand car you own, you are either a Holden or Ford person. The loyalty to the brand here has not wavered despite the troubles of its parent company General Motors in the US and the slowing economy.
The brand I can’t stand at the moment is the Advanced Medical Institute (AMI) and their nasal spray technology. If it weren’t for their tacky prime-time radio ads, I wouldn’t have my six-year-old asking me to explain premature ejaculation!
7. What do you believe has been the most significant moment in the history of marketing?
I believe the current GFC is changing marketing forever. As budgets tighten around the world, no sector is feeling it like marketing and advertising and it has been a huge wake up call to those agencies that have been banking on the co-dependence of business to traditional media. The sudden rush to social media as the cheap alternative to reach customers online has forced companies to re-evaluate strategies and the way they communicate with their audience. They have to start engaging and listening again. The GFC is a cleansing for the industry and reminder of what comes first, the customer.
In a 40-page document of financial results released today, General Motors Corporation has disclosed that it will slash marketing in the US by $800 million this year alone, including vehicle incentives.
A report from AdAge.com says that in a December 2008 filing, GM had said it would cut advertising and marketing spending in the US by $600 million by 2012. In document released today, the automaker says the cuts were necessary due to lower sales volumes.
Ray Young, GM’s chief financial officer, says that the automaker had to use a lot of incentives in the fourth quarter to offset the lack of credit from GMAC, but still eliminated leasing in Canada last year and is reducing leasing in the U.S.
“That’s an expensive form of incentive,” explains Young.
GM reported a global net loss of $30.9 billion for 2008, including a net loss of $9.6 billion in the fourth quarter.
All four of GM’s regions around the world moved into the red, but the biggest losses were in the US.
GM’s debt balance grew to $45.3 billion in the fourth quarter, which includes the $13.4 billion the company has already received in federal loans since late last year.
It asked the US government for $16.6 billion more in February, saying it needed another $4.6 billion within weeks and an additional $12 billion more to avoid bankruptcy.
GM has also reported that its net liquidity slid from $27.3 billion in the fourth quarter of 2007 to $14 billion at the end of December 2008.
