Tag’s Predictions for 2012
Posted by Headblogger @ Tag | Posted in Advertising, Cool Stuff, Digital, Internet, Marketing, Online, Social Media, Tag Communications, tagcommblog, Viral, Web Opinion, What's happening in adland? | Posted on 16-02-2012
Tags: Show Pony Fashion
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I can’t believe it has taken me this long to publish a blog entry – it’s been a busy start to the year. 2012 is well and truly here and the early year honeymoon that normally gives a tiny bit of respite never really arrived.
I am proud to say that 2012 is a bit of a milestone year for Tag as we celebrate our 15th year in business.
So none of the normal introductory dribble this time around I’ll cut straight to the chase about my 2012 thoughts and what I think will be hot. There are two big areas of focus this year, social media and mobile technology. Whilst they have been well and truly on the radar for some time, I believe the big shift will start this year.
Social Media
The growth and traction of most of the social media and networking platforms such as Facebook, Twitter, Linkedin and various blogs during 2011 was very strong. This year will see further growth and activity with more existing businesses either dipping their toe in the water or diving straight in with new applications. There will also be an increase in the number of new ventures that launch their business off the back of social media and why wouldn’t you when there are so many wonderful success stories?
The smart businesses that use savvy social media strategists or have them within their own ranks will leap-frog their competitors by actively engaging their audience. However, just be careful of anyone claiming to be a social media expert because frankly, I don’t believe there is such a thing. I honestly don’t think anyone can truly claim that title, because things are virtually changing daily. Developers are constantly trying new things, trying to integrate external codes with current social platform codes, testing new campaign ideas, linking back to other sites etc. I think a more apt description would probably be a committed social monitor. Someone that is constantly watching what is happening, monitoring various platforms – continuously and has tested various methods. Unfortunately in this genre there is a lot of trial and error and one size definitely doesn’t fit all.
Social media is not a discipline that can be easily conquered; it required constant activity to keep your audience interested. We are victims of our own success – the more you give the more they want and yes that includes you and me, unfortunately as consumers demand it regardless of whether its B2B or B2C. Bottom line is if it’s not interesting and it doesn’t communicate it won’t engage – your audience will simply move on to something else.
Back to the success story; I recently read about a small but rapidly growing fashion house called Show Pony Fashion, they’re definitely social media forerunners and what I love most about this is they are an Australian business taking it to the world. As recent reports have indicated, the company started just over a year ago pretty much off the back of the owners credit card, along with a dream, lots of passion and a savvy strategy. Show Pony Fashion recently hit $1 million in revenue not long after their one year anniversary. The owner, Jane Lu’s secret from what I can tell is the use Facebook and [fashion] blogs in an engaging and intelligent manner. You’ve got to be doing something right if you have 34,200 ‘Likes’ and 1,400 are ‘talking about this’ on Facebook. Have a look and surprisingly most of the functions she uses are Facebook Apps, nothing fancy but clever, engaging and constant. Show Pony Fashion Facebook
I only have one caveat that I would place on introducing or ramping up a social media strategy and that’s to be committed to it. Please don’t take a half-baked approach, plan your strategy carefully and accept that it is a trial and error medium. If you can afford it engage an agency or assign one person within your organisation to be wholly and solely responsible for the content. To give it an heir of importance here it is in Latin “Consilium tuum socialis media diligenter”.
If you need any stats to get your boss excited about why a social platform is an intelligent option here are some.
- 800 million registered users
- 600 million active accounts
- 1 in 13 people on earth use Facebook
- 250 million people log in daily
- There are over 700 billion minutes a month spent on Facebook
- Every 20 minutes 1 million links are shared
Blogs
- 73% of internet users read blog reviews, discussions and comments on brands, products or services
- 43% of internet users have discussed or commented on a product, brand or service on blog type sites
- 42% have interacted with product, brand or service
- 175 million registered users
Twitter is a little different to Facebook in that it is more reactionary to an event, comment or after a conversation has already started, so to illustrate the power here are some examples.
When Michael Jackson died Twitter averaged 456 tweets per second.
In the recent Super Bowl telecast there were 13.7 million tweets about the Audi advert So long vampires which was also on YouTube – clever ad – take a look at what all the hype was about.
My final point is to help emphasise the power and influence social media and the online world is having on business decisions and it comes from Proctor & Gamble’s CEO, Bob McDonald. He said they [P&G] spend around $10 billion a year on advertising media and the ad spend simply can’t keep going up year upon year. He is considering cutting 1600 marketing jobs. Why? Because he believes that a well planned and executed campaign on Facebook and Google is more effective and gains more cut through than many of the traditional media channels and he cites the Old Spice ‘The man your man could smell like’ campaign which yielded 1.8 billion free impressions. That’s pretty impressive. But it was also a bold campaign that cost a lot of money to produce and they still needed all the printed POS and collateral to support the campaign, but you get the point. Here’s the campaign creative if you’ve forgotten or have yet to see it.
Mobile Technology
This is another area that is still maturing but is moving in leaps and bounds. When there are 6 billion mobile subscribers worldwide you know one day they will all have a smartphone of some kind and that day isn’t too far away and with those kind of user numbers businesses really need to sort out how they will interact with their target audience.
Once again some companies are already surging ahead and using mobile devices cleverly, while their competitors are still stuck on old-school methodologies. In reality, the companies that haven’t made the shift won’t necessarily be left behind, but it will become increasingly difficult for them to match the ease of offering to the same clientele so maybe they will lose some market share. It’s a bit like the retail store that doesn’t want to offer eftpos facilities – cash only, sure they’ll survive but they’ll never have a lion’s share.
There will definitely be some decent advancement this year but it will be over the next 2-3 years where we’ll really see some significant changes happening with so many new smartphones and tablets earmarked for release during this time.
When it comes to usage the Australian statistics don’t appear to be reflecting the trends from around the world. Apple has an enormous presence down-under [comparatively speaking] and takes the lead. On the world stage they are actually ranked No.3 to Nokia and Samsung.
The introduction of Android will give Apple a serious run for its money but what this will also do is open up greater opportunities for businesses to deliver information more effectively. Admittedly it may be more expensive development wise at first as content will have to be configured to more than one platform but I believe this is a good thing. Rest assured Google will be working extremely hard on something special with all its new technology patents recently acquired with the purchase of Motorola. Reports predict Nokia to be the dark horse based on their pillow talk with Windows. And let’s not forget about companies like HTC, Sony Ericsson who both have great pedigree and even Huawei is snatching some market share – watch them carefully as they have the world’s largest test market. What saddens me most is the demise of Blackberry, as a former advocate I think it will die a death by 1000 cuts.
The long and the short of it is, all of these companies have seen the light and are moving towards it as fast as they can and the major benefactors are the end users and of course smart businesses wanting to deliver information and engage more interactively with their customers. So hang on and get ready for the ride.
When it comes to smartphones, this year will see mobile browsing improve exponentially as operating systems process faster and mobile web developers writing better code with faster loading speeds not to mention the clever interactive stuff. Location based services will improve and be better utilised as will near field communications. Push notifications will be taken advantage of and used more strategically. Finally I think mobile advertising will continue to grow as consumers want more and more information for free such as applications and content and companies will provide it to win over customers, but as we all know nothing is for free and the only way companies can monetise this is to get advertising revenue and thus the cycle begins.
In regards to the tablet market, ditto with most of what I said above plus I believe this is where we’ll see the biggest shift this year, especially across the B2B landscape as more companies move away from printed material and laptops and have the convenience and wow factor of a smaller finger swipe device with clearer pictures, greater power and more possibilities.
Built-in Wi-Fi and 3G makes them even more powerful, especially with companies engaging developers to create central hubs that push and pull dynamic data to and from each device. This delivers a benefit to all parties involved, management can see what is happening, the field force members have all the information they need at their fingertips and the customer receives a far more interactive experience.
Think about the applications that are already helping businesses. Many medical and pharmaceutical companies are using them to present their products to doctors such as Abbott and Medtronic. Airlines like Qantas and Jetstar are using them for in-flight entertainment. Mercedes Benz in the US rolled them out to dealerships to allow the sales people to complete loan applications and all the other paperwork there an then – imagine this could actually be done whilst the customers are still in the vehicle. The Inter-Continental Hotel chain provided them to their concierges because it provided better and faster local destination advice. The IT Infrastructure giant SAP rolled them out to provide their field force with real-time access to important business intelligence and enabling videoconferencing to happen anywhere, anytime.
We’re proactively working on this kind of stuff for a number of our clients and it’s great because it’s not only different, but for the client’s that are a little bolder we are able to discover new technologies and navigate through uncharted waters, which definitely adds spice to the day and keeps the young digital minds interested and a few of the older ones.
Are you reading this on your smartphone, tablet, laptop or desk top?







