Posted in Football, Latest Blog, Social Media

The Evolving Science of Social Media Marketing

Social Media Objectives

According to Pricewaterhousecoopers (PWC) and Internet Advertising Bureau (IAB), social media ad spends in the UK rose from £265m to £585m between 2011 and later part of 2013.  In 2014, there was a further 71% increase in social media spending. Despite this increasing trend, marketers have voiced concerns that increased spending has not been accompanied by a commensurate rise in effectiveness in social media. There are school of thoughts that believe, social media is meant for brand that their customer’s bases are web savvy or just young people – this is not actually the case. Businesses are now therefore looking beyond “like” button and started talking about return on investment as they always do on every marketing campaign.

Social media icons

Should marketers be worried their social media spend is being wasted?

I think there are a couple of things going on here. First, a lot of social media marketing has been done on blind faith. It’s often lacked an analytical backbone or a fully agreed set of key performance indicators to assess what the value is. A lot of brands have spent big money without being able to point to an exact return on their investment (ROI) – but things are changing now. Where people were chasing followers and “likes” a few years ago, they are now thinking more about getting clicks to their sites and sharing.

So what is your main social media objective as a Brand?

Previously, building up a large community social media follower’s was the main aim of brand investing and spending time on social media project. This is now beginning to change as major brand are now looking beyond driving site traffic and improving conversions using social media channels. According to Young Group and B2B marketing, some research is beginning to show a net change in traffic and also young social media. Brand website visit from their social channels have gone up by 33%, while Facebook is down 15% and YouTube 23%. Given its size, engagement metrics and the nature of its News Feed, Facebook has long been the social traffic referral leader. In July, it contributed 74% of our clients’ total social traffic, with Twitter a distant second at 16% according to the Define Media Group.

Social Media SMART Goals

What is driving this change and social media trends?

Most brand in the retail, education, travel and leisure industry are using social media as a powerful – interactive tool, educational, conversational and conversion into sales tool as this makes it much easier to do an ROI analysis looking at how such traffic converts.  With most brands having a transactional framework on their website, its smoothens the path to converting traffic and followers into revenue so a goal can be achieved at the end. This further emphasises the fact that a large community of followers is not that important anymore.

There has been a proliferation of social media channels now and this trend would keep changing and evolving over the coming years just as technology is. Around 1.6 billion people use messaging apps like Snapchat and WhatsApp as this would be growing overtime and therefore I can understand why technological firms would be making strategic acquisitions just as Facebook did to WhatsApp. Brand websites need to be deeply integrated with social networks, facilitating the easy sharing of content and making them a more friendly place to land as using social network as just a conversion tool normally back fires. The younger generation like brands that make life easier for them, not those that want a conversation and sales. They also want things that work with the technology they own and would share – say to their friends its ‘cool’.  With most people now having smartphones (74% and rising quickly), watch TV on their laptops (75%) and many will be using kindles and tablets for their studies this year (around half will own one of either in 2015/16). These are the insights marketers should look to when planning for success and to be able to get ahead of the game going forward.

The best piece of social media marketing I have seen this Year?

Thierry Henry goes back in time to prove that the Premier League is the best league in the world as part of a new advertising campaign for Sky Sports which was launched on the 17th July, 2015 at facebook.com/SkySports. As a teaser to the new 2015 premier league season, this new advert uses ground-breaking special effects and takes two-time Premier League winner Thierry back to a series of iconic moments. It starts from 1993 with him joining the celebrations of Brian Kidd and Sir Alex Ferguson (a bit of Fergie time)  when a late win over Sheffield Wednesday set Manchester United on course for a first Premier League title as part of a as part of Sky Sports’ hi-tech new advert.

Sky Sports pundit |Henry
Thierry Henry goes back in time to prove that the Premier League is the best league in the world.
As a global football icon and Sky Sports pundit Henry said: “Both as a player and now working for Sky Sports, I know what makes the Premier League the best league in the world and this advert helps explain why. It was a fascinating process to be part of, very technical with the effects used to take me back to those memorable moments. This advert has 206k likes, 22k comments and 17 million views as of this week – Incredible right?  This is where it going and the power of social media comes in. It’s not always all about self-promotion and websites now.

Which social networking sites do you think we should be watching going forward? Which do you think are on their last legs? Let me know in the comments below!

Follow me on Twitter @gmfrem for more insights, predictions, and expertise.

Posted in Business, Latest Blog, News

Predicted Long-term Macroeconomic Trends for 2050

Long-term forecasts and scenarios are vital for businesses that are making strategic business decisions over long term periods. It is also true that firms that are able to make predictions and forecast in relation to macroeconomic trends do make exceptional profit, an example being Apple – when it first launched the Iphone in January 2007. With many firms making strategic business decisions over long time frames, such long-term projections are essential to provide information to facilitate their business decisions as well as profitability.

Long-term forecasts and scenarios are also key to understanding some of the big economic issues that will shape global business in the coming decades. This research is based on The Economist Intelligence Unit long-range forecasts for 82 countries out to 2050. Not surprising to see the rise in China, India, Indonesia, Brazil and Mexico making the numbers as well. In 2050 the top three economies (China, US, India) will each be richer than the next five put together…

I was astonished to here HSBC announce they were practically ending its operation in Latin America’s largest economy (Brazil) – retaining only a few large corporate clients. The country’s interest rates are currently at an eye-watering 13.75% and expected to rise even higher this year Banks in Brazil are one of the few sectors that have been immune to the country’s slowdown. As Brazil heads for recession now, financial institutions are still posting record profits. In 2014, the country’s economy grew 0.1% – yet Brazil’s top five banks managed to increase their profits by 20%. HSBC, the sixth largest bank in Brazil still lost $247m (£160m) according to a BBC business report.

Nominal Gross Per-Capita 2014 Versus 2050 Going Forward

GDP Per country 2050

It still obvious China is expected to overtake the United States in 2026 in nominal GDP in US dollar terms and maintain its position as the largest economy to 2050. India is projected to move up the ladder to third place, with real growth averaging close to 5% up to 2050. Indonesia and Mexico are expected to spring into the top ten world economies from 16th and 15th place in 2014 to fourth and ninth place respectively by 2050 according to the EIU report. Representation of Western economies within the top-ten listing is not expected to be that significant. For instance, The USA, Germany, the United Kingdom and France will all move down the rankings, but only Italy will lose its place within the top ten.

The Economic Growth of Asia Endures

Nominal GDP 2050

By 2050 it is expected Asia will account for 53% of global GDP not as the same pace as experienced during the millennium era. The upsurge of Asia is not a new phenomenon; the rise of Japan and South Korea has been witnessed over the second half of the 20th century. The start of the new millennium saw another boom, with many Asian economies recording high growth rates that took their share of global GDP from 26% to 32% between 2000 and 2014.

 Nominal GDP for 2050 by Country

The top three economies of the world will be the US, China and India By 2030. China and India’s growth alone in particular by 2050 will be greater with each being richer than the next five countries (Indonesia, Germany, Japan, Brazil, and the UK) put together. Will China and India’s economic might, push them to take on a much bigger role in addressing global concerns such as climate change, international security and global economic governance? I do honestly doubt that…..

Largest increase in labour force 2050

Real GDP Growth 2050During the period between 2015-50, global working-age population will drop from 1.7% to 0.3% as predicted by the EIU report. It is expected majority of countries in Africa and the Middle Eastern region will benefit from an increase in their working populations, which will be an advantage in sustaining higher growth rates in the forecast period. Potentially, labour force of Angola, Nigeria and Kenya are expected to almost triple between 2014 and 2050, rising respectively from 9m to 28m, 56m to 161m and 18m to 48m. The labour forces of Algeria, Egypt and Iran are expected to increase considerably too, doubling in size by 2050. But the big question is – would there be enough jobs in these countries to reduce unemployment and sustain economic growth?

These economies will primarily benefit from favourable demographics in the forecast period, with higher birth rates supporting a healthy supply of workers. For countries with favourable demographics, the EIU forecasts assume that growth-friendly policies are pursued and are successful in providing jobs for a growing workforce and ensuring longer-term growth. Failure to achieve this will lead to a growing number of potential workers unable to find employment, resulting in a source of significant political instability and a missed opportunity in terms of seizing an advantage offered by favourable demographics as experienced like a country like Tunisia – where the Arab spring started in December 2011.

Labour Force & Real GDP 2050

Most of Europe and East Asia, by contrast, is expected to see labour-force declines, representing a severe drag on growth. Japan will see the greatest decline of over one-quarter, from 66m to 47m; China and South Korea are also expected to experience a 17-18% contraction in their labour forces according to the EIU. For Europe – Greece, Portugal and Germany will see their available labour forces decline by over one-fifth, falling between 2014 and 2050 from 4.8m to 3.8m, 5.2m to 4.2m and 45m to 35m respectively. Other, emerging European economies (with a few exceptions, including Kazakhstan and Turkey) will experience persistent declines in their available labour forces, ranging between 20% and 30% as these economies will see the drop in their labour forces act as a drag on growth.

In conclusion, economic policies to increase participation rates will be pursued to soften the negative effects of unfavourable demographics in the coming years, but these will not be sufficient though. Immigration policies will move up high on government agendas as most advance economies will be required to compete to attract a limited global pool of labour going forward.