social media advertising impacts on algerian consumers : case study on mobile operators

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Analysis of Social Media Advertising Impacts on Algerian

Consumers : Case Study on Mobile Operators

Presented by: M. Karym BentebbalBranding, Marketing and Communication Professional

Teacher at the Algerian American Management Institute

EHEC Kolea, Algiers. Mai 16, 2016

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

I. GLOBAL STATISTICS ON SOCIAL MEDIA


Social media statisticsFor context, as of JAN 2016, total worldwide population is 7.3 billionThe internet has 3.17 billion usersThere are 2.3 billion active social media users91% of retail brands use 2 or more social media channelsInternet users have an average of 5.54 social media accountsSocial media users have risen by 176 million in the last year1 million new active mobile social users are added every day. That’s 12 each secondThere are 1.65 billion active mobile social accounts globally

https://en.wikipedia.org/wiki/World_human_population#cite_note-:0-1

http://www.statista.com/statistics/273018/number-of-internet-users-worldwide/

http://www.slideshare.net/wearesocialsg/digital-in-2016

http://www.adweek.com/socialtimes/yesmail-retail-brands-social-media-channels/622117

http://www.globalwebindex.net/blog/internet-users-have-average-of-5-social-media-accounts

http://www.socialmediatoday.com/social-networks/kadie-regan/2015-08-10/10-amazing-social-media-growth-stats-2015


http://www.jeffbullas.com/2015/04/08/33-social-media-facts-and-statistics-you-should-know-in-2015/

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Source: we are social, 2016 Digital Yearbook



Facebook adds 500,000 new users every day; 6 new profiles every secondThe average (mean) number of friends is 338, and the median (midpoint) number of friends is 200Half of internet users who do not use Facebook themselves live with someone who doesThere are an estimated 81 million fake Facebook profilesThe most popular page is Facebook for Every Phone, with 509,772,152 likesThere are 40 million active small business PagesBut only 2 million of those businesses pay for advertising

Google processes 100 billion searches a month. That’s an average of 40,000 search queries every second89.3% of all internet searches are carried out by GoogleThose searches are carried out by 1.17 billion unique usersEvery day, 16 to 20% of that day’s queries have never been asked beforeGoogle has answered 450 billion unique queries since 2003. More than half of Google’s searches come from mobile devices. By 2014, Google hadi ndexed 30,000,000,000,000 pages of the internet. To carry out all these searches, Google’s data centre uses 0.01% of worldwide electricity

300 hours of video are uploaded to Youtube every minuteThere are 3.25 billion hours of video watched each monthMore than half of YouTube views come from mobile devicesThe average mobile viewing session lasts more than 40 minutesThe user submitted video with the most views is “Charlie bit my finger”, with 834,956,899 viewsOn average, there are 1,000,000,000 mobile video views per dayYou can navigate YouTube in a total of 76 different languages (covering 95% of the Internet population)


http://www.pewresearch.org/fact-tank/2014/02/03/6-new-facts-about-facebook/

http://www.pewresearch.org/fact-tank/2014/02/03/6-new-facts-about-facebook/

http://www.statisticbrain.com/facebook-statistics/

https://www.facebook.com/f4ep

http://techcrunch.com/2015/04/29/facebook-40-million/?ncid=rss#.z2bwqv:ff9d

https://www.facebook.com/business/news/two-million-advertisers

http://mashable.com/2015/10/12/google-mobile-searches/#auY.TjeaIaqT

http://www.internetlivestats.com/google-search-statistics/

http://www.internetlivestats.com/google-search-statistics/

http://www.statista.com/statistics/216573/worldwide-market-share-of-search-engines/

http://searchengineland.com/google-worlds-most-popular-search-engine-148089

http://readwrite.com/2012/02/29/interview_changing_engines_mid-flight_qa_with_goog#awesm=~oiNkM4tAX3xhbP

http://readwrite.com/2012/02/29/interview_changing_engines_mid-flight_qa_with_goog#awesm=~oiNkM4tAX3xhbP

http://mashable.com/2015/10/12/google-mobile-searches/#auY.TjeaIaqT

http://www.statisticbrain.com/total-number-of-pages-indexed-by-google/

http://www.statisticbrain.com/total-number-of-pages-indexed-by-google/

http://www.statisticbrain.com/youtube-statistics/


http://vope.net/27-mind-blowing-youtube-facts-figures-and-statistics-backed-by-data/

https://www.youtube.com/yt/press/statistics.html

https://www.youtube.com/watch?v=_OBlgSz8sSM



https://en.wikipedia.org/wiki/YouTube#Localization

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It is clear that from these statistics, marketers are faced with new challenges, one of them being (not to say the most important) : UNDERSTANDING CUSTOMER BEHAVIOR, and thus engaging in new relationships.

The conventional advertising approach of mass media communications aims at reaching a broad group of customers, hoping to stimulate the few interested ones.

Decline of mass media advertising is now a reality accepted by the industry see: CONSUMER TRUST IN TRADITIONAL ADVERTISING DECLINES IN UK, WHILE A RECOMMENDATION FROM FRIENDS REMAINS MOST CREDIBLE NIELSEN 29-09-2015

http://www.nielsen.com/uk/en/press-room/2015/consumer-trust-in-traditional-advertising-declines-in-uk-while-a-recommendation-from-friends-remains-most-credible.html



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With the proliferation of information received every day, more stimuli bombardments forces individuals to be more cautious, hence filtering information and allocating attention to what concerns us more.

Thus it is even more important for marketers to address specific customer’s concerns, talk to customers individually or in communities.

Today, organizations need to put the customer back at the center of their business, if they want to benefit from the opportunities provided by the social media new era. Thus, marketers need to understand the changes that are occurring in customers behavior.

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II. SOCIAL MEDIA



A. DefinitionBeside any definition found on the Internet, we acknowledge that: “Social Media has created a new landscape in supporting the socialization of information (Solis 2007)”.In summary, we recognize three factors of Social Media:

Facilitate and enhance communication flow between always more people Spread useful information with potentially large online audiences Conversation on media locally but with a global impact

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II. SOCIAL MEDIA



B. Types of Social MediaWe can identify 5 different categories of social media outlets:1) Social Networking Sites, 2) Social News, 3) Media Sharing, 4) Blogs, 5) Microblogging.

In Algeria, Facebook totalize more than 7.8 M users in 2015. Algerians are not using Twitter (38 000 users) very much and they prefer YouTube when it comes to Media Sharing platforms. With the introduction of the 3G bandwidth, mobile operators have provided low-price to free access to Facebook in an attempt to increase their data-users market share.

C. Social Media MarketingIt refers as leveraging the “social” through “media interaction” to “market” offers

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II. SOCIAL MEDIA



C. Social Media MarketingDefined as leveraging the “social” through “media interaction” to “market” offers.

In summary, Social Media is a Marketing tool that: Empowers individuals and businesses to promote their business to a wide

audience Is more efficient than traditional advertising in reaching specific target

audience Transforms marketers from broadcaster of information to aggregator of

consumers and communitiesThe web should not be considered as an ordinary advertising channel but rather as a place where marketers can listen and respond to consumers’ communities, promote relevant content and optimize the formed relationships.

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III. CONSUMER DECISION MAKING PROCESS



Consumer Behavior is wide in scope and breadth; such study requires the collection of a vast amount and data to inspect. Instead, and to narrow the scope of this presentation, the focus today will be on understanding the Consumer Decision Making Process which associates social media and advertising. From the trigger of an advertisement, to the active evaluation phase up to the moment of purchase, the various steps in the process will derive meaning on how customers engage with digital content on social media, the internet and on mobile phones. Ultimately, marketers will identify the pitfalls and opportunities linked with the new marketing world.

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Marketing goal is to reach customers at the moment that most influence the purchase decision:

e.g. : High Definition and XL TV sets in retail space to influence customers e.g. : Amazon recommendations to customers logged-in and ready to purchase

Marketing goal is to reach customers at the moment that most influence the purchase

decision.

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Consumer Behavior Model (Engel, Kollat and Blackwell EKB. 1978)

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To summarize the Consumer Decision Making Process: (1) Trigger of impulse to buy because consumer identifies a need; the trigger comes from internal or external sources i.e. media ads, family and friends(2) Recalls brands from own experience; accumulated brand impressions shape the initial consideration - Thus marketing claim or promise should be strongly penetrative(3) Filters messages received, consumer narrows down options and search for information to validate choices; Evaluation of P&S to lead to final choice(4) Purchases P&S, experience and influence can reinitialize the process(5) Post Purchase Decision: “Should I keep or trash that brand?”

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What is wrong today with this model?

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The TRADITIONAL FUNNEL is a linear

Adapted to a One-Way-Communication Process Marketer push marketing efforts at each step to influence behavior Fail to capture all the touch points resulting from consumer interactions on

digital channels Consumer are getting more clever Not adapted to the increase in products and options

It is not looking at the Consumer Decision Journey as a whole. The way consumers make buying decisions changes, resulting in a new

approach

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McKinsey circular journey model : CUSTOMER DECISION JOURNEY

1. The Initial Consideration 2. The Active Consideration3. The Closure4. The Post Purchase Experience

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Now Let’s take a look at the Algerian Consumer Decision Journey

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TRIGGER PHASEConsumer sees an advertisement on TV, or realizes the need for a good bargain prepaid offer and 3G. TV AD

The Consumer: “… Good, I need to make calls and connect with my friends on social

networks; now this sounds like a good deal! Let’s investigate that offer...And find out if a

better deal is to be found with other operators…”

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INITIAL CONSIDERATIONThe consumer has already subscribed to a post paid plan with operator X. However he wants the best possible rate plan to make calls, surf the web and stay connected with friends and family on Facebook, watch videos on Youtube and send text messages and chat on messenger. He knows other mobile operators have similar offers so he decides to find out more. (End of stage 1: Initial Consideration).

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INITIAL CONSIDERATION

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INITIAL CONSIDERATION – 1st change: Consumer may add brands at a later stage. Brand awareness matters: brands set in the initial-consideration CAN BE UP TO THREE TIME more likely to be in the final phase of the consumer journey.In some industries like skin care or electronics, the study shows that automobile shoppers added 2.2 brands in the initial-consideration set to their initial set of 3.8.Social media plays an active role at this phase of the CDJ. The change in consumer behavior offers an opportunity for less prominent brands to compete. Brands under consideration can no longer take the status for granted (McKinsey Report – The consumer decision journey.)

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ACTIVE EVALUATION – 2nd change: customer PULL informationThe customer now has the option to browse social media platforms and learn about the new offer. He can read the comments posted by other customers on Facebook and make his mind without going to an operator retail shop. Social media is becoming influential in Algeria, because it could be perceived as non authoritative.After reading reviews and comments, the consumer sets for a new plan with a competitor that offers internet access and free social media for 20% less than his current operator; he is happy and plans to use the extra-saving to subscribe to another bonus plan for voice and sms. (End of stage 2: Active Evaluation).

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ACTIVE EVALUATION – 2nd change: customer PULL informationMarketers drive promotion by pushing traditional and direct marketing, sponsorships and other channels. At each point in the CDM (traditional funnel) marketers attempt to “push” and promote to a large audience, hoping to reach the few interested through a process that lacks in precision and effectiveness.Customers today are reaching out to marketers. This is the second profound change in behavior:They “pull information from social media platform”, learn from resources on the internet, trust Word-of-Mouth both online and offline and recommendations from friends and family, as well as in-store interactions and recollection of previous experiences.

Marketers need to influence consumer-driven touch points

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ACTIVE EVALUATION Consumers are taking advantage of technology, hence have more control to check, add or remove brands and evaluate options.

Brand selection expands, rather than narrow as consumers seek information. In our example, the consumer may discover other benefits associated with another brand and this may alter the journey towards purchasing.

Unique opportunity for marketers to reach “The Right Consumer”, thus SM can bridge new relations by offering targeted and relevant content to influence consumer choice.

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ACTIVE EVALUATION McKinsey research found that 2/3 of the touch points during this phase involve consumer-marketing driven activities and word-of-mouth recommendations from F&F, as well as in-store interactions and past experiences recollections. Company driven marketing account for 1/3 of the active evaluation phase.“The Algerian consumer has now the possibility to learn about new offers, by accessing a wide range of information available on the Internet and social media, thus making new decisions and changing initial brand consideration along his purchasing journey”.

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PURCHASE AND LOYALTY LOOPPost purchase experience shape consumer’s opinion for subsequent decision in any category, making the journey an ongoing cycle.

After purchasing an offer, DZ telecom consumers are seeking for support or additional information about their offer on the operator’s Facebook or tweeter page.

This touch point in the CDJ was unthinkable before; it provides an opportunity to turn consumers into loyalists and brand promoters.

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PURCHASE AND LOYALTY LOOPThere are two kinds of consumers: passive and active Loyalists. It is then possible to convert passive Loyalists to adopt another brand.

Social Media is now providing a context in which a brand can give consumer’s reasons to switch, not excuse to stay: optimizing the relevant touch points is a marketer’s priority.

Telco should try to focus efforts on expanding their active Loyalists base. Hence, budget should be allocated to this relevant touch point.

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Key Learnings: Telecom brands are not leveraging the full strength of social media. They are fighting

the battle for ATTENTION, allocating most of their marketing budget to the initial consideration.

They are fighting the wrong battle: consumers are looking for the best options in a saturated market. That means they are searching, evaluating, seeking recommendations, reading and posting comments on social media.

In a market where consumers are multi-SIMers, it is possible to provide a reason to switch by allocating budget on new touch points.

Looking at the traditional marketing funnel’s front and back end, marketers are missing opportunities to optimize the most important touch points of the CDJ, and to target the right consumer at the right moment.

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Key Learnings:“They are fighting the battle for attention, allocating most of their marketing budget to the initial consideration phase”.

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Key Learnings: DZ Telecom marketers should develop a deep knowledge of how consumers

make decisions.

The marketing efforts may need to change direction, from advertising on the initial consideration phase to developing internet and social media content that will help consumers gain a better understanding of the brand and offer during the active evaluation.

Consumer driven marketing implies that consumers are pulling content therefore marketers should provide them with information, support and experience they want to reach decisions.

Algerian Mobile Operators may need to retool their loyalty program and focus on active loyalists

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Key Learnings “The Algerian mobile communication consumer decision journey will increase in complexity, therefore organizations need to redistribute marketing budget along the new pathway, identifying customer touch points to leverage”.

“This implies understanding and measuring consumer behavior and attitudes, brand performance and marketing expenditure through the entire process”.

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…That’s it for today! Thank you for your interest

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Resources:http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journeyhttp://www.digitaltonto.com/2014/mass-personalization-is-coming-are-we-ready-for-it/http://www.forbes.com/sites/gregsatell/2015/10/12/marketers-need-to-drastically-rethink-the-customer-decision-journey/#10163aef3f28http://www.mckinsey.com/business%20functions/marketing%20and%20sales/our%20insights/demystifying%20social%20media

http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey



http://www.digitaltonto.com/2014/mass-personalization-is-coming-are-we-ready-for-it/

http://www.digitaltonto.com/2014/mass-personalization-is-coming-are-we-ready-for-it/

http://www.forbes.com/sites/gregsatell/2015/10/12/marketers-need-to-drastically-rethink-the-customer-decision-journey/#10163aef3f28

