Microsoft just bought LinkedIn. This is a huge move into the world of social media.

Microsoft has announced a $26 Billion acquisition of Linked In. This is Microsoft’s first entry into the social media world. (or second if you count MSN). My first reaction was “WOW. Just wow.”  I was expecting something, but didn’t see it coming now, and with Microsoft. But good for them. And this is the first move, not the last move.

linked in.002I normally hate mergers and acquisitions, but this one is pretty interesting. Microsoft is making an obvious play at the business world. While the Nokia experiment failed, I wouldn’t be surprised if they keep pushing into the portable device space. The surface has done fairly well (I’m 100% Apple guy, but I see them around). And now  Microsoft will now be able to package Surface + Office + LinkedIn + Slideshare + Skype.

In an email to staff, Microsoft CEO Satya Nadella touted the pairing as a way to improve both companies by integrating LinkedIn’s content and network with Microsoft’s cloud computing and productivity tools. “This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you’re trying to complete. As these experiences get more intelligent and delightful, the LinkedIn and Office 365 engagement will grow,”Nadella wrote.

Honestly, I have no idea where the current world of social media settles in, and who owns what. But the world of convergence will happen over the next 5-10 years. From a social media point of view, most of these sites are just about expresses ourselves, just in slightly different ways. If I look at my news feeds on Facebook, LinkedIn, Twitter or Instagram, they are starting to look similar, some days almost too similar. Not all of them will survive or need to survive. There are already apps that allow one to post on each site. Why not take it a step further and just have one site, with 3 or 4 window. Facebook could easily have a personal window, business window, entertainment window or politics window. I don’t see a need for Twitter, do you?

I could easily see Apple and Facebook getting together.

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By the way, shares of LinkedIn surged 48% after the announcement, while Microsoft’s stock was down 4%. Trading in Microsoft had been halted briefly for news pending before the announcement of the all-cash deal. So maybe the market’s first reaction isn’t so strong. I think this is a great fit for Microsoft and the market will settle in.

Your move next Apple.

 

At Beloved Brands, we lead workshops to help teams build their Strategic Thinking, helping Brand Leaders to think differently in terms of competitive strategy, consumer strategy, getting behind your core strengths and being aware of the situational strategy. Click on the Powerpoint file below to view:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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In advertising, what comes first: the MEDIA choice or the CREATIVE idea?

Of course the consumer always comes first. However, as you begin the advertising process, Brand Leaders need to figure out whether the creative determines the media choice you make or the media choice helps frame the creative. When I started in marketing, way back in the mid 90s, life was a little simpler because the media and the creative were both under one agency roof. The meetings were simple: you’d see your various TV script options, give some feedback and then the room would go silent and the account person would say “now let’s look at the media plan” and the media person would take you through a 15 page presentation on where else the idea of your TV script could go. You would see some magazine, OOH and even some sampling idea. Back then, there was no internet advertising yet.

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Then one day, our media folks from our agency were spun off, had a new name, moved offices and had a new President. It now just meant we had two presentations and the Brand Leader now had to make sense of things and try to piece it together. About a year into that new relationship, I was sitting there confused and asked the question: “So what comes first, the media choice or the creative idea?” The room went silent for about 5 minutes. Then of course both sides talked over each other, both saying it was them that came first.  

All Marketing Execution has to do something to the brand–getting the consumer to think, act or feel differently about your brand. Media is an investment against your strategy and creative is an expression of your strategy. Both media and creative are only useful if they connect with consumers. Great advertising must connect through very insightful creative that expresses the brand’s positioning and told in a way that matters to those who care the most. Great advertising must be placed within the consumers’ life where it will capture their attention and motivate them in the expressed desired way to meet the strategy. So really, the consumer comes first and strategy comes second. Media and creative need to work to jointly capture the consumer and deliver the strategy.  

With separate agencies, the problem now rests with Brand Leaders to figure it out. While one could theoretically argue that if the Creative Idea of the advertising is so big, it should work in every medium. That’s just not always true in reality. Some ideas just work better in certain mediums. Yet the media people could also theoretically argue that if you go for the most efficient and effective media option, the media will do the work for you. That’s also not true. The best overall advertising should work focus on what has the most impact and what has the highest efficiency.  

Here’s a solution for Brand Leaders 

The three questions you always need to keep in your head at all times: 1) where is your consumer 2) where is your brand and 3) how does the creative idea work? 

1.  Where is your consumer?

You should really understand who your consumer is, and who they are not. You need to make sure you understand the insights about them, because it’s those insights within your creative that allow you to connect with them. They’ll say “they get me”. You should always be mapping out a day in the life of your consumer. Get in their shoes and say “what does my consumer’s day look like and how will my message fit or interrupt their life?” Take a “be where they are approach” to your media. 

2.  Where is the Brand?

First thing you have to do is consider where your brand is on the Brand Love Curve where brands go from Indifferent to Like It to Love It and all the way to Beloved. At INDIFFERENT, it’s about announcement style such as mass media, LIKE IT becomes about separating yourself from the competition while LOVE IT and BELOVED you’ll start to see the growing importance of event marketing to core users or social media as a badge of honor to share with others.

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3.  How does the Creative work? (The ABC’S)

The best advertising should draw ATTENTION, be about the BRAND, COMMUNICATE the main message and STICK in the consumers head long beyond the ad.

  • Attention: You have to get noticed in a crowded world of advertising. Consumers see 7,000 brand messages per day, and will likely only engage in a few. If your brand doesn’t draw attention naturally, then you’ll have to force it into the limelight.
  • Branding: Ads that tell the story of the relationship between the consumer and the brand will link best. Even more powerful are ads that are from the consumers view of the brand. It’s not how much branding there is, but how close the brand fits to the climax of the ad.
  • Communication: Tapping into the truths of the consumer and the brand, helps you to tell the brand’s life story. Keep your story easy to understand. Communication is not just about what you say, but how you say it—because that says just as much.
  • Stickiness: Sticky ads help to build a consistent brand/consumer experience over time. In the end, brands are really about “consistency” of the promise you want to own. Brands have exist in the minds of the consumer. 
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In the reality of advertising, not every ad execution will be able to do all four of the ABC’S.  When I’m in the creative room, I try to think about which of the two ABC’S are the most critical to my strategy. If it is a new product, I want all four, but I have to have: Attention and Communication. If the brand is in a competitive battle I have to have Brand and Communication.  If the brand is a leader and beloved, I need to make sure the advertising is about the Brand and that it Sticks.   

What I recommend you do:

In a sense, you have to work the creative and media together. But that’s impossible. So what I do is hold off on making any media decisions until you see the creative idea and how it is expressed in a few media options. With all the potential media options now available, I ask for 3 executions for each creative option:

        1. Video version
        2. Billboard 
        3. Long Copy Print

Sounds simple, but here’s the logic. With those 3, I can now imagine how the advertising might work across all possible media options. 

  • The “Video” allows me to imagine how the creative would work for traditional 30-second TV ad, a 60-second movie theatre ad, 2 or 3 minute viral video for sharing or even a video you could put on a website.
  • The “Billboard” allows me to imagine how it would work with traditional media options such as out-of-home billboard, bus shelter, in-store poster, packaging copy and the back cover of a magazine.  Or if we want to look at digital, it could be a digital billboard, Facebook photo, website cover.
  • The “Long Print” allows me to imagine what how it might work with a print ad, side panel of packaging, brochures, public relations story-line,  social media feed or even a blog on your website.  

With 3 simple asks against each creative idea, it covers off most of the traditional media options, even covering the digital media. So now as the Brand Leader goes to their Media Agency, they will know how the creative idea would work against any of their recommendations. 

Obviously, we always recommend that you focus. So we’ll likely recommend a lead traditional media and a lead digital and lead social option. You need to make the most out of your limited resources of dollars, time, people and partnerships. However, if we want a creative idea to last 5 years, seeing it work across this many media options gives me a comfort that should I need that option, I know the creative idea will work.

The media math from a client’s view

While the media agency owns the media math that blows your mind, here is some simple client side media math. As clients, we have to make the most of our budgets. 

  • Your production budget should be around 5-10% of your overall advertising plan. If you have small budgets, that may creep up to 20%, but that’s it. Every time you do a new piece of creative, the production dollars go up and the media dollars go down. I’d recommend you focus on one main traditional media and have only one secondary option. This keeps your spend focused. 
  • When it comes to social media, keep in mind there is no free media options. Instead of financial capital, you are now exhausting people capital. Just like the traditional options, I would recommend one lead social media and one secondary focus. Do not try to be all things to all people.  
  • The other reason to focus is to ensure you do great executions and not just “ok”.  Pick the media that maximizes the power of the creative. Don’t exhaust the team by spreading them against too many activities.   
  • Allow 80 to 90% of your media spend be on the highly effective highly efficient media plan. That means 10-20% of your media spend can now go against high IMPACT creative ideas that you know will break through.  

Work with both the creative and media at the same time, figuring out what gives the highest return on your investment

 

To see a training presentation on getting Better Marketing Execution: 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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Barbie is trying to inspire girls to believe that “you can be anything”

Barbie faced major declines

Barbie has been heavily criticized over the last few decades for projecting an unrealistic image for girls. Launched in 1959, Barbie was the blonde all-American dream, but a complete fiction that many believe to be doing more damage of the self confidence of girls. The modern Moms didn’t want their daughters playing with Barbie anymore. All of a sudden, Barbie sales declined 20% in 2012 to 2014. The brand needed to make a dramatic change.

Barbie took a dramatic step forward–even if just to catch up to where they should be–by launching new possibilities with realistic options for body type (curvy, tall and petite) and various ethnicities (seven skin tones) They needed to create a Barbie that Moms would think acceptable for their girls to play with. These moms wanted a good symbol for their daughters, not something unrealistic and unattainable. The new Barbie is a good first step.

 

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Next, the supporting Advertising for Barbie has gone viral with over 20 Million views. The ad starts by showing a young girls in situation as a College Professor, a Museum curator, a Veterinarian or a Soccer coach.  The supporting copy: “When a girl plays with Barbie, she imagines everything she can become.” with a bold tag-line:  YOU CAN BE ANYTHING. This is a great ad with a new message that should fit with the modern moms.

 

Barbie sales are up 8% this past holiday period, a good start to the turnaround. 

Here are five lessons for Brand Turnarounds

  1. Ensure the right people in place: Before even creating the plan, you need to get the right leadership talent in place. Talent, motivation, alignment. Mattel brought in new CEO last spring who reshuffled a lot of the executives in an effort to turn the business around.
  2. Look to close leaks on the Brand: Use brand funnel to assess, using leaky bucket tool to close leaks. Find out where the specific problems are coming from. Barbie has done a nice job in listening to their consumers, the moms who were rejecting the brand due to stereotypes.
  3. Cut the fat, re-invest: go through every investment decision, invest only in programs that give you an early break through win. Even faced with Sales declines, Mattel made a smart move to cut costs by 10% to drive profits back into the business. It is hard to do a turnaround while the profit keeps falling.
  4. 3-stage plan: In stage 1, find early/obvious win, halts slide, helps motivation. In stage 2, invest behind new positioning/new plan, focused decisions, take risks. In stage 3, make adjustments to plan, build innovation behind new ideas that fit plan. Barbie started talking about the plan a year ago, listening to consumers and preparing for the big launch. So far, they’ve stemmed the decline, but now they need to build a plan for the next 3-5 years that grows this business.
  5. Motivating a demotivated team: Losing can be contagious to a culture/team. Recognize wins to fuel performance driven culture. People on the team needed new leadership and needed room to take chances with this iconic brand.

We run workshops on Strategic Thinking that looks at brand strategy including competitive war games, focusing on your core strength, building connectivity with consumers and situational strategy.

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept.

custom_business_card_pile_15837We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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How to lead the entire Brand Planning process on your business

4 stages of the planning process

Our  planning process starts with a deep-dive business review, lays out the brand positioning. We use the Brand Plan to get everyone on the same page, helping make decisions, resource allocations and set up the brand’s execution. We then build an execution plan that helps every stakeholder to contribute their part to the brand.

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First, you need to go deep to gain an understanding

Every situation has unique challenges. It is important to do the work to understand where your brand is today, what is holding it back from the expected growth. Whether that means doing a deep dive on the business or challenging your people with key questions that will highlight the challenges facing the brand.

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To read more on conducting a Deep Dive Business Review, here is our workshop that we run to help make brand leaders smarter:

Create a winning brand positioning statement for your brand

You need to create a brand idea and brand positioning that will help your brand win in the market. Find a winning brand positioning, that balances the rational and emotional benefits.  Work to create a Big Idea that frames the external and internal promise of your brand. We recommend that you validate a Brand Concept with your consumers to see if  you have something unique, own-able and motivating.

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To read more on developing a unique, own-able and motivating Brand Positioning Statement, here is our  workshop that we run to help make brand leaders smarter:

Write a Brand Plan that everyone can follow

The main goal of writing a focused strategic brand plans is to get everyone on the same page, so that everyone in your organization can follow. Here, you want to get your team lay out a long range strategic road map and brand plan that includes a vision, purpose, goals, strategies and tactics. Then, work with your team to create actionable project plans for each tactic with goals, milestones and budget.

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To read more on building a Brand Plan that everyone can follow, here is our workshop that we run to help make brand leaders smarter:

Build the marketing execution plan that drives growth for your brand

We use the Big Idea map to lay out a plan every consumer touch point–including the brand promise, brand story, innovation, purchase moment and brand experience. From there, we match up with the consumer buying system to focus on moving consumers from awareness to purchase to repeat and on to becoming loyal. This sets up the communication brief that frames both the creative and media, helps drive the innovation plan, sets up the culture of the organization as the backbone to the experience and manages the purchase moment through channel management and merchandising.

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To read more on getting the most from your Marketing Execution, here is our workshop that we run to help make brand leaders smarter:

 

We run workshops that help Brand teams make better decisions on the way to smarter action plans

We are big believers in the workshop process. We think it’s the best way to get the decision makers in the room, push for alignment, make decisions and drive the team towards action. The most noticeable point of difference we offer is that we will challenge you with new ideas to get your brand and your team in a better position for future growth. As the facilitator, I bring my executive experience into the room, ready to challenge the thinking and pushing for better answers. It’s like having another VP Marketing in the room.

While anyone can recommend a strategy, we recommend a realistic strategy that drives towards action. Quite frankly, I’m not big on consultants that just bring in big presentations that just sit on the shelf and never make it to the market. They cost a lot, take a long time, and in general they are written by consultants that have never run a business. Even Ad Agencies can recommend strategy, but they usually bring an agency bias and just give strategies that set up work they want to make–whether it drives growth for your business or not. I’ve run many businesses and I understand the pressure you’re facing on driving growth.

My personal promise to you is that I will get your brand in a better position for future growth

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. custom_business_card_pile_15837We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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No brand does Social Media better than Taylor Swift

B2WXKxRIUAA8EY-Yes, every star these days has millions of fans following them on Twitter and Instagram. But it’s what Taylor Swift does with her following that really separates her out from the pack, and helps turn her into a Beloved Brand.  I know you want to be cynical and think “well, she likely has a team of people”.  Yes she does, but she has the vision, direction and final say for how her brand is portrayed. Justin Bieber might have similar followers, but in between throwing eggs at the neighbor’s house or driving too fast, the most interesting thing he ever tweets is “Hello Chicago” on the morning of his concert or dropping the names of other celebrities that he’s hanging out with. It reminds me of Michael Jackson back in the 1980s–everyone was using video, but MJ was just using it better than everyone. 

I’m not a fan of TSwizzle’s music, but she does an amazing job portraying herself as an average girl living a celebrity life. She tries to do “normal things” that someone her age would do for her friends, and in this case she treats her fans as though they are her friends.The creative programs Taylor does choose give you a feeling that it’s not just about awareness, but rather about connecting. She uses surprise and delight marketing in many of the things she does, which is a great tool that bridges “pop star” lifestyle with the “average girl” image.   

Here are 5 brilliant and highly creative on-line moves by Taylor Swift that connect her on a deeper level with her followers:

1. Taylor woke up and flew to Ohio to surprise a fan by going to her bridal shower. She appears like a long-lost friend, hugging everyone and talking with ease among her “friends”.

2. While very small in nature, she has been well-known to just lurk around and comment on randomly comment on people’s Instagram page. Imagine how huge it is when her name randomly show up one day.  She’s even taken it a step further by providing advice to fans on Instagram–the type of advice that a friend would provide. 

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3. This year, “Swiftmas” gifts to fan, where they actually studied the social media pages of certain fans to give them gifts that were relevant to that person’s life–just like a friend–plus long hand-written notes. She visited one long-term fan with gifts for her son–spending two hours with the family. Just watch the reaction of these fans. This video has over 14 million hits.

4.  Taylor wrote a compassionate and supporting note on Instagram to a Fan who was bullied. Bullying is a very important topic and this note generated tons of positive PR for Taylor.

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5.  Visiting a Boston’s Children’s Hospital. What shows up in this video is how casual Taylor is–from having an un-tuned guitar to not overly prepared what to sing to a viral filming of the visit. 

Through each of these programs, Taylor Swift appears very open, authentic and genuine in her approach to fans. She grew up in such a video/on-line/social media world, that taking selfies, tweeting about waking up late and commenting people’s Instagram pages are just very “normal” things to do.

Taylor Swift uses Social Media to show up as”just an average girl”

Last year, I wrote about How Miley Cyrus used controversy to gain attention in a very strategic manner.  To read more on that, click on this hyper link:  Managing the Miley Cyrus Brand

At Beloved Brands, we run a Brand Leadership Center to train marketers in all aspects of marketing from strategic thinking, analysis, writing brand plans, creative briefs and reports, judging advertising and media. To see a workshop on THE BRAND LEADERSHIP CENTER, click on the Powerpoint presentation below:

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential. For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

 

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What will happen when Teenagers leave Facebook?

tumblr_lgfj0tfVVo1qdetk0o1_400I have two teenagers at home, so I can safely call myself the world’s foremost EXPERT ON TEENAGERS!!!   Actually, as a parent of teenagers, I have absolutely no clue what’s going on.  But that’s a whole different blog.  What I have noticed in 2013 is that my two teenagers aren’t using Facebook at all.  A sample of two:  my 16-year-old has only 5 posts this year and my 15-year-old has 7 posts. I know 40 year-olds that have that many posts in a day, posting anything from photos of cute cats rolling on the grass to a hilarious video of an old lady dancing to 28 photos of their 3-year-old at the zoo pointing to a Lion or commenting on “what’s a color without the letter E in it”.  

And we can’t figure out for the life of me why teenagers would want to leave this cool and fun party?  Actually, the answer is pretty easy: “YOU GUYS ARE SUCH LOSERS”. I hear that one every day. Keep in mind, we drop them off where we can’t be seen. This is the same thing that goes for social media. Don’t embarrass me!

Facebook was originally developed by College Students for College students and then quickly followed by High School students.  It became the place to be around 2007. Then 20 somethings got on, then Moms then snuck on in 2010 and now….Grandmas are on there. The biggest growing demographic is 55+. And they are commenting on photos. OMG!!!  WTF!!!  IKR!!!  GTFO!!! We had to tell my mom not to comment on my daughter’s Facebook page anymore for fear she would be unfriended and blocked. We are already blocked so we know what that feels like.   It stings.

This is pure comedy, an example of the horror teens are facing. It’s a mother trying to defend her son, on his girlfriend’s Facebook page.  My guess is they are no longer dating. 

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Are we starting to get a picture of why the teens are leaving Facebook?  Just keep repeating this and it will help you understand teens: “YOU GUYS ARE SUCH LOSERS”. And then maybe go slam your door.  

Let’s look at the Facts

  • The active number of Facebook users in the US is down 7.4% in 2013.  The average age continues to climb every year, with 65% of Facebook users are now over 35 years old. The biggest complaint people have is that it’s boring. As my friend says “how come people will watch videos of cats falling off a sidewalk on-line, but if we said that’s a TV show, no one would watch it”. The answer is likely novelty.  
  • Moms have gone on Facebook in droves:  72% of Moms are now on Facebook. Half of them said they are really just going on to keep tabs on their kids. And 74% of Moms say they check their kids Facebook several times a week.  Slide1
  • On the flip side, one in three teens are embarrassed by their parents’ Facebook comments. The problem is that your teenagers know you’re spying. And they don’t appreciate it. Over 30% of teens say they have unfriended their parents. Teens complain they don’t get enough privacy on Facebook.  
  • Teens continue to turn to smartphones as their primary source and as a result prefer App based programs such as SnapChat, Twitter, KIK Messenger, Ask FM and Instagram. Adults can’t even find these and when they do, they can’t even work them. And when you figure it out, teens will just move on to something else.
  • Recent study found 33% of teens called Facebook the most important social network, closely followed by Twitter with 30%.  Twitter is significantly gaining.  Just 6 months ago, the scores were 42% to 27%.  

So now what happens? 

A few things come to mind.  

  • Kids want something that is uniquely their own.  It reminds me of what happened to the Gap Clothing store.  Back in the 1990s, it was the cool brand for teenagers.  Then Baby Gap and Maternity Gap meant teens would now be wearing the same clothes as their cute little nephew or their hugely pregnant Aunt.  Total Horror.  So the teens stopped going and then the pregnant aunt didn’t want to dress like someone uncool. So sales tumbled. This could be a metaphor for Facebook. Once you are everything to everyone, you end up nothing and to no one.   
  • One less chance for Control Freak Moms:  If a lot of moms are on Facebook only to spy on their kids, maybe they’ll now move on and stop using Facebook so much. How many pictures of Cats can we really “Like” while waiting for your little precious to post something you can tell her is totally inappropriate?   And other moms are likely only on Facebook because it’s the cool thing that teens do.  Once they find out it’s no longer cool, we could have our new version of the tipping point that Gap went through.
  • Advertisers are confused by Social Media yet again. Just as they were finally able to start putting numbers to social media, the whole world has changed yet again. Advertisers want to know reliable sources for where to invest their advertising dollars. They need payback and if the audience keeps moving, then it’s hard for them to have a steady reliable place to invest in.

The same problem continues:  How do we monetize Social Media platforms?

Most social media platforms follow the same pattern. They launch with a unique way of communicating that is a dramatic improvement over prior methods. There is minimal advertising because they are focused more on gaining a large following that might take a year or two. Plus, they are so unproven, making it very hard to get advertisers to buy into it. They end up with a large audience but no proven method of making money from that large audience. And then they take it public with a promise that “we’ll now use advertising to our huge audience to drive future revenues”. teens-on-cell-phonesThe claim is that the value of Social Media platforms should not be based on current revenue streams but on future revenue sources.  They say “trust us, this will be huge”.  Right?  You’ve heard this story before.  But as they said in Jerry McGuire:  “Show me the money!!!”  

We have to be able to see how a social media platform can make money. With some of these sites, I’m not seeing it yet.  But now, as Facebook is still trying to figure out how to monetize their huge user base, that user base is starting to leave. Down 7.4% is pretty significant for something that is free. The new mediums they are leaving for look like a total fad. How do these new vehicles make money?  There are no ads on Instagram or Snap Chat. Yes, Facebook now owns Instagram for a tidy $1 Billion.  But how do you now make money on it? By the time they figure out how to monetize, the teenagers are likely already moving on to what’s next. And the cycle continues.

Facebook had quickly become the wonder-drug of Social Media, the one powerhouse that everyone was engaged in and Advertisers were starting to understand. Will there be a new version of the mega social media platform or will the future just be fragmented into unique platforms for unique groups?  Does that make it harder or easier on Advertisers?  Yes, there will be better segmentation but confusion over how to go about reaching.  Too many executional options for too many media choices.  

Is Facebook at a tipping point? Will they just become the social media site for the over 30?

What’s your next move Facebook?

Here’s a presentation that can help Brand Leaders to get better Media Plans.  

 Positioning 2016.112