Editor’s note: Social Media Insights will be delivered exclusively to subscribers of Business Insider Intelligence beginning January 2, 2014. Non-subscribers will receive a shorter afternoon version. Sign up for a free two-week trial to BI Intelligence here.
Facebook is losing teens faster in international markets than it is in the U.S., according to a recurring survey conducted by GlobalWebIndex.
- 63% of U.S. Internet users ages 16 to 19 used Facebook monthly in the third quarter this year, compared to 56% of international users who did so.
- Facebook usage among teens in the U.S. has declined 16% between the second quarter of 2012 and the third quarter of 2013.
- The Netherlands has seen the largest decline in Facebook usage among teens, dropping 52% since the second quarter of last year.
- In fact, 19 markets, including Brazil and Mexico, are seeing a faster decline in Facebook usage among teens than the U.S. is. (GlobalWebIndex)
In “The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators,” authors Jeffrey Dyer, Hal Gregersen, and Clayton Christensen uncover the origins of “innovative-and often disruptive-business ideas.”
“Five primary discovery skills — skills that compose what we call the innovator’s DNA — surfaced from our conversations. We found that innovators ‘Think Different,’ to use a well-known Apple slogan. Their minds excel at linking together ideas that aren’t obviously related to produce original ideas (we call this cognitive skill ‘associational thinking’ or ‘associating’).
But to think different, innovators had to ‘act different.’ All were questioners, frequently asking questions that punctured the status quo. Some observed the world with intensity beyond the ordinary. Others networked with the most diverse people on the face of the earth. Still others placed experimentation at the center of their innovative activity. When engaged in consistently, these actions — questioning, observing, networking, and experimenting — triggered associational thinking to deliver new businesses, products, services, and/or processes.”
Most of us believe that the ability to think creatively is genetic. It’s not.
Most of us believe that some people,! like (S teve) Jobs, are simply born with creative genes, while others are not. Innovators are supposedly right brained, meaning that they are genetically endowed with creative abilities. The rest of us are left brained — logical, linear thinkers, with little or no ability to think creatively. … (You’re wrong!) At least within the realm of business innovation, virtually everyone has some capacity for creativity and innovative thinking. Even you.
Behaviors drive innovation.
A critical insight from our research is that one’s ability to generate innovative ideas is not merely a function of the mind, but also a function of behaviors. This is good news for us all because it means that if we change our behaviors, we can improve our creative impact.
The five specific skills that are key to generating novel ideas are:
- Associating: Innovators associate ideas that are previously unconnected either to solve problems or create something new. This is how Gutenberg created the printing press. When forming teams, keep cross-pollination of experiences and perspectives in mind. But you also need the glue. You need someone in the room with loose associations who can pull ideas together.
- Questioning: Innovators ask a ton of questions. In fact, they treat the world as a question. Managers ask ‘how’ questions — how are we going to speed that up, how are we going to stop this from happening. Innovators ask ‘why.’ They are the kid at the back of the class the teacher hates (and often, the person in the meeting the manager hates.) Not only does this help you filter bullshit, but it helps jolt people from the status quo.
- Observing: You can’t learn if you don’t observe. You need to always be observing. This mindfulness is what allowed Sherlock Holmes to solve cases.
- Networking: Talking to people is a great source of ideas. People offer different perspectives. They may have just failed at something but you may be able to apply the same idea to a different problem. You need to be open to these perspectives, even if you just file them away for another day. (see #1)
- Experimenting: If the world is their question it is also their lab. Fail often. Fail fast. Fail Cheap. Try again. Never give up.
You can see how these are somewhat synergistic. They all fit together, each one making the other parts stronger. If you can only pick two focus on asking questions and networking.
A recent survey found that mobile video viewers are happy to watch long-form content. But, according to FreeWheel’s latest quarterly report [download page], most of them simply aren’t. The data indicates that during Q3, 72% of ad views on Android phones were derived from content less than 5 minutes in length, with the corresponding figure at 77% for iPhone users. As might be expected, viewing on larger screens and OTT devices (such as game consoles and connected TVs) more closely mirrors the TV experience.
During the third quarter, one-quarter of ad views on PCs and Macs were derived from long-form content (more than 20 minutes), with that figure at 32% for iPad ad views and 53% for OTT device ad views.
Research released earlier this year found that video ads were more effective when viewed during TV shows online than during short-form content online.
Separately, FreeWheel data shows that video viewing on mobile devices is indeed increasing rapidly: year-over-year ad view growth was pegged at 365% for tablets and 235% for mobile phones. But – as always – taking these figures out of context muddies the overall perspective. Even with that dramatic growth, tablets (4%) and mobile phones (8%) account for a far smaller share of ad views than PCs (86%).
7 in 10 adult consumers in the US and UK read consumer reviews before making purchase decisions, details Bazaarvoice in newly-released survey results. The company says reviews are consulted more than any other content – a result not too hard to believe given other research suggesting that 8 in 10 American consumers trust online customer reviews as much as personal recommendations. At the same time, Bazaarvoice finds a healthy level of skepticism about the validity of those reviews: roughly 1 in every 2 survey respondents believe one or more reviews they read online is fake.
A majority also believes that companies remove negative reviews.
Consumers have good reason to believe that some of the reviews they read are fake – and perhaps more than half should be skeptical of them. A study released [pdf] earlier this year by MIT’s Sloan School of Management suggested that even loyal customers post negative product reviews. Yelp has acknowledged that somewhere in the realm of one-quarter of reviews submitted are fake, though it said that while touting its review filter.
The Bazaarvoice results aren’t the first to show consumer skepticism towards online reviews. In July, a Maritz Research paper [download page] indicated that one-quarter of respondents believe that information found on ratings sites is unfair. 6 in 10 tend to look at the actual comments rather than the numerical ratings – and only 53% of ! responden! ts who had read reviews at Yelp believed that most or all of the information was an accurate representation of customers’ experiences.
Just a few months ago ZenithOptimedia predicted that mobile would contribute almost as many dollars to new advertising spending as TV in the period spanning 2012-2015. Now, the researchers have updated their forecasts and are projecting mobile advertising to generate more new ad spending ($31.8 billion) than TV ($29.8 billion) for the global ad economy from this year through 2016. That’s fairly remarkable, considering that ad spending on TV is currently about 15 times higher than on mobile. The end result is that mobile will pass radio, magazines and outdoor to become the world’s 4th-largest ad medium.
By 2016, ZenithOptimedia forecasts that mobile internet ad spending will account for 7.7% share of global advertising dollars, almost tripling the estimated 2.7% share from this year. That 7.7% share will exceed the share of ad spend captured by outdoor (6.9%), magazines (6.3%) and radio (6.3%), and will be behind only newspapers (14%), desktop internet (18.9%) and TV (39.3%).
While mobile will likely cannibalize some desktop internet ad spending, the forecast isn’t too dull on the desktop side of things. Desktop internet is projected to be the third-largest contributor to global ad spend growth from now to 2016, with an additional $21.5 billion in spending forecast for the medium, which will increase its share of ad dollars by a point to 18.9%.
The rise of online advertising is coming almost entirely at the expense of print – with magazines (down 1.6% points to 6.3% share) and newspapers (down 3% to 14% share) likely to see not only decreases in ad market share, but also in ad spending volume.
Overall, the researchers p! redict th! at global ad spending will increase by 3.6% this year, before growing by 5.3% next year and by 5.8% in both 2015 and 2016.
[Editor's Note: This is the latest quarterly update to this article, this time containing Q3 2013 data and trend analysis.] There’s a strong perception that with the rise of all things digital, youth have turned away from TV – with this collective shrug taken as a sign of TV’s impending death. An analysis of more than 2 years of data, including figures from Nielsen’s latest quarterly cross-platform report [download page], indicates that while youth are indeed watching less TV, it’s not yet as precipitous a decline as one might be led to believe.
Nielsen’s most recent study indicates that the 18-24 group watched a weekly average of roughly 21-and-three-quarter hours of traditional TV during Q3 2013, about a quarter-hour less than they did a year earlier. That equates to 2 minutes less per day.
Of course, compared to two years ago (Q3 2011), the drop-off is more stark as the losses mount: 18-24-year-olds watched almost 20 minutes less per day during Q3 than they did 2 years ago. But that translates to less than a 7% drop-off in daily viewing from 2 years earlier – hardly falling off a cliff.
Amazon has 16.7 million Prime subscribers, according to a new research report from Consumer Intelligence Research Partners (CIRP).
According to CIRP, this is up from 9.7 million a year ago. It also says that 93% of Prime subscribers are happy with the service and plan to stick around for another year.
CIRP got its numbers through a survey of 300 Amazon.com users.
Prime is $79-per year service that gives users free two-day shipping, as well as access to Amazon’s Netflix-like video streaming service. It’s a pretty good deal for anyone that uses Amazon frequently.
Amazon Prime members spend “$1,340 per year, compared to $708 per year for non-Amazon Prime customers, and account for 56% of US product sales,” says CIRP in its press release on the findings.
Sometimes, something is so big that you don’t notice it for a long time. You suddenly realize you’re in a massive crater, say, or that a building is towering overheard. Or, in this case, a gaping security void in the internet. And someone’s been siphoning massive amounts of data out of it.
Each time Spotify plays a song, your favorite singer or band gets as little as 0.6 cents, the company said.
At that rate, a song would need to be played 166 times for the artist to earn $1 in royalties (100 cents divided by 0.6 = 166).
The info comes from a fascinating — and hugely welcome — article Spotify published on its revenue model. In a single post, Spotify has done more to demystify artist royalties in streaming music than Pandora and Apple have ever done, combined.
But before you get angry at the fantastically tiny amount of cash that bands get for each song, remember that those fractions of pennies add up.
This is Spotify’s revenue picture (below). The company says it has 6 million users paying $9.99 (or £9.99 or €9.99) in 2013: That would imply its gross revenues from users are somewhere north of $720 million annually:
The company also said it will pay out $500 million in royalties this year:
Spotify says it pays 70% of its gross revenue in royalties to artists. Again, that would put Spotify’s annual revenue from users at around $720 million. (Spotify didn’t talk about advertising revenue, which it generates on top of that.)
In terms of per-song fees, Spotify said: “Recently, these variables have led to an average ‘per stream’ payout to rights holders of between $0.006 and $0.0084.”
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
Collaborators – Digital Profs
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Bitcoin Developer Sells $8 Million Worth Of Hardware In 24 Hours, As Mining Technology Arms Race Goes Insane
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- The JKWeddingDance video was real; the viral effect was MANUFACTURED - Post 1 of 2
- WPP Will Buy Interpublic Group To Reclaim Top Spot In Ad World [THE BRIEF]
- Samsung 52 inch HDTV $9.99 at BestBuy - purchase receipt below (6:21a eastern time August 12, 2009)
- social media benchmarks
- Social Media Experiment In Public Shows Anyone Can Be Like The NSA
- Brand Advertisers: Escaping an Ecosystem of Digital Advertising Fraud
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- December 2013 (47)
- November 2013 (111)
- October 2013 (116)
- September 2013 (214)
- August 2013 (210)
- July 2013 (200)
- June 2013 (87)
- May 2013 (87)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (94)
- August 2012 (93)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (12)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)