Facebook goes public, FB shares open at $42.05
Facebook's IPO is a huge milestone for a company that is arguably unlike any other to come before it. Launched in 2004 from a university dorm room, Facebook has risen to become more than just a multi-billion dollar consumer internet star -- it's a cultural phenomenon used by close to a billion people.
But the company's public debut is hardly the end of the story Mark Zuckerberg wrote. Instead, it's just the beginning of what could prove to be either one of the greatest tech investment opportunities ever or a passing fad that brought irrational exuberance back to internet stocks. Which one will it be? Naturally, it depends on who you ask.
On one hand, Facebook is a force to be reckoned with. It has nearly a billion users, billions in revenue, one of the best-recognized brands in the world and some of the best engineering talent in Silicon Valley. Facebook boosters thus argue that the company is just getting started and its best days are ahead of it.
On the other hand, Facebook's current valuation is based on its potential more than its relatively modest earnings and faces significant challenges in realizing all of its potential, including mobile. Skeptics will point out that the company is no spring chicken, saw a quarter-over-quarter revenue decline last quarter and that key insiders are selling in the IPO, hinting that they may believe Facebook's valuation has peaked (or is close to peaking).
One thing is for sure: the initial movement in FB shares (up or down) in the next hours, days and weeks will make for great entertainment, but it's what happens in the coming months and perhaps even years that will determine whether Facebook is the next Google, or the next Groupon.
36% of consumers read marketing emails on mobile
The basic rules of email marketing still apply on mobile, “but we need to be smart in how this translates to a mobile version of an email - fewer characters on a far more personal device”.
A third of respondents (33%) said that they use their mobile to screen emails, before reading them later on a desktop, though this does contradict the Knotice stats, which found that in 95% of the cases, the email open is occurring on only one type of device, which removes one excuse not to optimise for mobile.
Data included in an infographic from Return Path shows that 41% of Europeans would either close or delete an email not optimised for mobile.
However, stats from our Email Marketing Census 2012 found that with 39% of companies said their mobile email strategy was “non-existent”, and 37% said their strategy was “basic”.
Therefore it seems a huge number of brands are wasting a lot of effort and missing out on conversions simply because they haven’t optimised their emails for mobile.
The importance of an effective mobile email campaign is further underlined by engagement statistics form Steel’s report. Among those who open emails on a mobile, 42% of respondents have clicked through to a website and 30% claim to have made a purchase from a mobile email.
In reality 30% seems quite high, but it does suggest that a significant proportion of consumers are encouraged to make purchase decisions from mobile marketing.
Steel recommends the following five steps to improve your mobile email messages:
Simplify your emails: reduce the number of categories, sub-headings, links and images.
Limit your calls to action and make them obvious: use a small number of obvious call-to-actions, ensuring clickable areas are no bigger than a fingertip (44x44 pixels).
Use a clear, methodical hierarchy and keep it short: create a clear headline followed by secondary messaging, and keep it as brief as possible.
Use capitals in titles to distinguish text and content areas.
Stick to one or two columns of content: if using more than one column, centre the text in each column to maximise the visual space between them and improve legibility.
The data in Steel’s report came from a nationally representative survey of 500 respondents.
Mobile is the future, just ask Facebook
Driving the mobile usage surge is the proliferation of smartphone growth. IDC recently revealed that 59% of all mobile phone owners possess a smartphone as opposed to a basic mobile device, with that percentage expected to rise sharply over the next five years as smartphones continue to replace traditional handhelds.
Mobile-social growth impacts everyone, from consumers to brands to investors, though for slightly different yet similar reasons. Facebook needs to monetise that growing number of mobile users without disrupting the user experience.
Too many ads, users cringe. Too few ads, revenue decreases and the markets notices.
Today’s social marketer needs to stay on top of these trends as consumers are increasingly interacting with content via smartphones. Marketers must understand the demand that puts on their social content strategy.
As social matures, led by Facebook, brands will need to develop a more integrated POEM (Paid, Owned & Earned) strategy. Facebook underscored this with the introduction of Sponsored Stories and Reach Generator.
Consumers are increasingly making the social web the center of their digital world. Yesterday’s brand website is becoming today’s Facebook Page. But this presents incredible opportunities.
Below are just a few key ideas for marketers to consider as they strive to better reach today’s mobile-social consumer:
Mobile optimisation now includes social
With more people accessing Facebook via mobile Web, Facebook announced at Mobile World Congress that the company is focusing on building out more effective mobile solutions to aid in app discovery, payments and mobile browser fragmentation.
Marketers should be eager to execute on the bevy of new opportunities this presents to optimise content for mobile and achieve maximum engagement and effectiveness. If you don’t, then you are missing almost 50% your audience, with 488m monthly mobile users (and growing) on Facebook.
Bridge the digital & physical worlds
Effectively engaging your social consumer while on the go provides many added benefits. Think commerce, location-based apps, and real-time targeting. Mobile marketing allows brands to reach and engage with a consumer when they are closest to activities such as shopping and eating.
Delivering consumers real-time deals and coupons by location and activity can achieve tremendous results. It’s about delivering relevant content at the opportune time. It’s the blending together of the digital and physical worlds, giving brands a chance to expand and enhance the consumer relationship.
Understand behavior and usage differences
As consumers continue to upgrade from traditional cellphones to smartphones, mobile behavior will further evolve, and marketers must stay abreast of the latest mobile consumer behavior data. If you understand the behavior and usage differences, you can deliver more relevant and engaging content.
In our white paper, Social Mobile User Engagement, we explored performance metrics via mobile including: image and text posts perform better; Thursdays – Sundays are more effective posting days; shorter posts are more effective; and post with links receive higher engagements, to name a few.
Further, as smartphone usage expands and speed and download times increase, look for video and rich media content engagement to also increase.
Facebook recently unveiled new App Insights metrics, offering mobile referral data from their dashboard to help “understand the traffic your app receives from Facebook mobile sources” and “continue optimising distribution via mobile social channels”.
Ensuring that a Facebook app is Flash-free and optimised for whichever screen users are using is vital. Facebook’s new App Insights metrics is a great tool for helping marketers understand where broken experiences may be occurring and helping them hone in on behavior and usage differences between mobile and non-mobile devices.
In the mobile kingdom, content remains king
Facebook had never talked so much about mobile than it did at its Facebook Marketing Conference (fMC) earlier this year. It has continued that focus leading up to its IPO.
Revealing Timeline for brand pages, unveiling ads for mobile devices along with several other features and functions, Facebook showed it understands how the location of premium ads needs to be different in a mobile environment vs. desktop web.
All of this followed Twitter’s announcement they it is expanding its mobile advertising strategy, “making promoted tweets visible in its apps for iPhone and Android devices”.
All of these upgrades are about content – promoting and highlighting premium content in feeds is just one piece of the puzzle. To garner attention, the content still has to be engaging, feel personal to the consumer, and exhibit relevance.
In conclusion
The industry is still in the very early stages of the mobile-social revolution, but we know this space will move forward rapidly, bringing changes, developments and opportunities daily.
From our own data, we see that mobile engagement on Facebook more than doubled in just six months for the brands we manage.
The percentage of Likes from mobile across our client base went from around 15% in the middle of last year to 40% of all Likes by December. We expect that to hit 60% by the end of the year. By staying focused and having the right partners, marketers can achieve success with today’s new mobile-social consumer.
Ten interesting digital stats we've seen this week
Multi-screen usage
Stats from our Multi-Screen Marketer report, produced in association with the IAB, show that 65% of the respondents with a tablet in our study said they were likely to be using a second device while watching television.
Even most people with only two screens (TV + computer) are more likely to be online while watching than not (52%).
Multi-screening can be positive for publishers and advertisers. Those with tablets are significantly more likely (47%) to take an action (voting, purchasing, etc.) in response to what they’re watching than their peers with three screens (37%).
47% of tablet owners have used a mobile device to respond to something on the screen and 28% have downloaded an application that’s related to a show they watch.
Chance of using a mobile device to take action from television prompt:
Mobile web usage
Almost two-thirds of UK smartphone owners (59%) access the mobile internet everyday, according to stats from Google.
85% of UK mobile users seek local information on their smartphone, and 81% take action using the local content.
Mobile search has grown 500% in the past two years.
Online research and in-store purchases
More than a third of Homebase customers research online before going in-store, according to the retailer's Head of Multichannel Andy McWilliams.
Reducing online returns rates
By using the Shoefitr tool, which helps shoppers to find the best fit for them, US retailer Running Warehouse has reduced fit-related returns by 23%.
The app has enabled Running Warehouse to increase its profit margins by 2.5%.
Previously, around 65% of the retailer returns were due to size related issues, but now 20% of orders come in from customers that have used the app.
Social media and customer service
More than a third of UK consumers (36%) have engaged with brands through social media, according to a survey from Fishburn Hedges.
68% of those who have engaged with brands through social media believe that it “allowed them to find their voice”.
More than two-thirds (65%) also believe that it is a better way to communicate with companies than call centres.
Twitter's mobile users
Twitter now has 10m UK users, of which 80% access the site using mobile.
This makes the UK Twitter's fourth largest audience behind the US, Brazil and Japan. It has 140m users worldwide.
Tablets
One tablet generates as many website visits as four smartphones, according to data from Adobe's Digital Index Report.
By the end of Q1 2012 smartphones accounted for 6.1% of site visits compared to 4.3% on tablet (mainly iPad).
Within a year of its launch in Q2 2010 the iPad accounted for 1% of total website visits, reaching 4.3% of total visits by the end of 2011.
Facebook and customer acquisition
More than a third of UK businesses (36%) now use Facebook to attract new customers, according to data from Basekit.
This makes it more popular as an advertising tool than local business directories such as Yellow Pages and Thomson, which are used by 27% of the 500 small businesses surveyed.
The use of online advertising is now almost as common as print advertising (20% vs. 21%), and Twitter is also quickly gaining popularity (17%).
Marketing emails and mobile
Research by STEEL finds that 36% of all consumers are already reading marketing emails on a mobile device. This figure rises to 55% for 18-34s.
However, one in four find marketing emails too difficult to read on their mobiles.
The top area of dissatisfaction is too much scrolling (42%), while 29% state that the layout of emails isn't right for their mobile device and 27% feel there is too much content.
Reasons for opening emails on mobile:
Shazam and TV ads
According to ITV and Shazam, around 50,000 viewers used the Shazam app to tag the Pepsi MAX and Cadbury ads shown during ad breaks in Saturday’s Britain’s Got Talent final.
Shazam recently announced a partnership with ITV to provide interactive TV ads.
This week's top six infographics
The Potential Of Facebook’s Newsfeed Ads vs. IPO valuation (Webtrends)
Why do users become disengaged with your email? (Litmus)
The ultimate mobile web infographic (Bootstrapper's Guide)
Bounce rate demystified (KISSmetrics)
This is actually an old one, but a) I haven't seen it before and b) it's good...
Facebook vs Google Display Network (Wordstream)
The ROI of tag management (Tealium)
(From Econsultancy's The ROI of Tag Management report.)
Content trends: six things everyone’s talking about
1. Can you COPE?
COPE, as in Create Once Publish Everywhere. Originally this phrase was simply a sell for clever publishing software. It’s now become shorthand for planning and creating content that can be published and re-used across many platforms, ideally cutting the cost of creation, production and (especially) translation and localisation. Lately we’ve heard it bandied about a lot in editorial meetings.
Obviously if you are going to publish the same content (or elements of the same content) across many platforms, you’ll need to indulge in some pretty sophisticated content planning work first.
If your company operates in a series of content silos, with one team ‘doing email’ and another responsible for ‘social’, you’ll struggle to get this off the ground. But if you can join your internal content owners up to develop a truly inclusive content strategy, then COPE may well prove efficient for you.
On a practical level, for written content, this will usually mean coming up with highly adaptive modular copy formats that everyone signs off on and subscribes to. Cue stakeholder pistols at dawn…
2. Post-Panda SEO for peanuts?
You can’t stuff your content with keywords any more. So what now? Those whose businesses stand or fall on their search results are out there trying to source content that will both keep customers engaged and satisfy a Google algorithm that rewards content quality. But how much are they willing to invest in it really?
As far as we can see, the SEO copywriting market has polarised. While we can report a recent large influx of clients prepared to invest in quality copywriting, along with the editorial planning, format work and quality control that requires, we also notice a proliferation of extremely low-cost content providers.
There will always be people prepared to churn out repurposed gobbledegook for buttons (£6.50 for 700 words, anyone?) and also those who insist that software could “seriously, like, replace Shakespeare”.
But the truth is that anyone who is prepared to write you an on-brand, optimised, customer-facing, usable piece of content, mapped to your business objectives, legally compliant, sub-edited and proofread for a fiver, is either living in a country where that’s a day’s wages, living off a trust fund or has repurposed it from someone else’s work.
Really good content costs. Sorry.
3. Micro-content fixes
The rise of the copy nudge. The double-dip has forced companies to focus even more on the bottom line. So what content gives the greatest return on investment?
Last year we started suggesting that budget-strapped content owners identified quick copy fixes with high ROI. After all, if your conversions increase as a result of your emails, then why not focus on a more compelling email sign-up, or on messages which dissuade customers from unsubscribing?
Re-working a key call to action, a button, or split-testing the benefits on a product page is quick to do, requires minimal design input and can produce instant results.
The king of all quick copy fixes is the online form. We have case studies showing up to a 35% increase in conversions from fixing the reassurance and instructional text in transactional areas.
So maybe instead of that big ambitious content migration, you should simply ‘sweat the small stuff’ instead?
4. Mobile, tablet and yet more mobile
Making content mobile and tablet friendly is definitely what’s keeping content owners up at night. Last year, Jakob Nielsen revealed that content is twice as hard to understand on a mobile device. "When reading from an iPhone-sized screen, comprehension scores for complex web content were 48% of desktop monitor scores," he reported.
So what is the answer? In short: write short, clear sentences. What’s the problem? This is very hard to do well, especially when summarising the terms and conditions of a home contents insurance policy.
And what about tablet? While we’re still in learning mode as to what works best, certain content issues are already pretty clear. Overly-long lists and menus, information ‘too small to tap’ and serving up splash screens are all out. It appears you do need a distinct content approach for tablet after all…
5. Govern or be damned
"Quality is doing it right when no one is looking," said Henry Ford. Unfortunately, all the best editorial set-ups rely on lots of people looking. Looking, editing, checking, and then looking again in fact.
While most content teams weren’t initially set up with anything like this kind of QA process in place, we are seeing a rise in demand for content training and guidelines which support governance and help benchmark content quality.
For many clients this is ensuring that (a) best-practice samples and execution guidelines exist for each content typeand (b) someone is making sure they actually get followed. For others, this means regular content auditing followed up by training and mentoring.
It’s fantastic to finally see the old-school rigour of print publishing being embraced by the digital world. Better content should come of it.
6. Content ideas brainstorm boom
The trend to embrace content marketing as a discipline in itself continues apace. But this is primarily an editorial endeavour. And great editorial depends on an ongoing flow of high-quality ideas. When the ideas run out, it’s all over.
As original ideas can be hard to find (especially for the more complex B2B brands), the ability to brainstorm clever content ideas, formats and executions has become powerful content-marketing currency.
What marketers are after is ‘ideas with legs’, workable series of content that can be replicated week after week without flagging. Content mapped to customer needs and interests that is truly useful, usable and builds long-tail relationships.
In his post-Panda blog post Google fellow Amit Singhal advises content owners to avoid ‘mass produced’ content that is ‘shallow in nature’, and to strive for high-quality ‘original content’. He urges us to produce articles full of ‘interesting information that is beyond obvious’ and remove low-quality content from our websites.
And this is the biggest content trend of all: the culling of poor-quality content is finally beginning to happen. And we can’t wait to see the results...
MediaCom's six lessons for mobile marketing
1. Get the foundations right
Bardega said that the fundamentals of a mobile strategy are an optimised website, plus mobile focused search and advertising campaigns.
These key elements need to work on mobile – get them right before you move on to anything else.
Noting that 60% of UK businesses don’t have a mobile optimised site, he said marketers should also be aware that Google only displays the top two paid search results on mobile compared to three on desktop.
Also you get different spelling mistakes on mobile, so your keywords need to be aligned differently.
Looking at advertising, it is also important for marketers to ensure that their digital creative works on mobile.
A year ago 5% of ads were showing a backup GIF on mobile, but that has increased to 15% due to the number of people viewing ads on devices that don’t support flash.
Bardega said that MediaCom has seen a 20% improvement in mobile conversions for businesses that ensure their site, search and advertising are optimised.
2. Accept diversity
While media agencies will profess to be able to segment and identify a target audience on mobile, Bardega said that in truth it is difficult to predict behaviour using traditional demographics.
Agencies have loads of tools for understanding customers, but the reality is that there’s diversity among demographic groups in the way they interact with mobile.
3. Harness device attributes
Mobile is a personal space and offers excellent opportunities for engaging with consumers. Bardega highlighted research that looked at the relationship between how long users engage with a digital ad and the propensity to buy.
It found that after 30 seconds of interaction the likelihood to purchase increases by 6%, however it increases by 20% for users who engaged with an ad for 90 seconds.
Advertisers therefore need to find ways of delivering engaging adverts through the use of mobile technologies, such as augmented reality.
However, it is important to only use the ad formats that are right for your audience.
4. Integrate everything
Bardega suggested that businesses should integrate mobile into everything they do. He highlighted a campaign by Alton Towers that saw 5,500 customers attend the theme park for free using a check-in offer run through Facebook.
Similarly, Skoda used mobile AR app Aurasma to embed digital content in print ads, achieving 6,000 scans across four publications.
The same campaign achieved an 18% response rate from pre-roll ads and 4.3% from display ads.
Overall mobile helped drive a response rate that was 230% higher than average.
5. Be brave
Bardega admitted that often with new technologies brands need to be willing to try new ideas.
He said NFC marketing campaigns will be the norm in a few years, but for now advertisers need to be brave and trial the technology even if the results are unimpressive.
We need to test these methods with consumers. Don’t worry if it’s a success, but think about what learnings can you take forward.
6. Make new friends
Mobile is a rapidly changing environment, so brands and agencies should be looking for new partners to work with to help drive innovation in their campaigns.
New technologies create new opportunities, so look at who you can be working with alongside your traditional partners.
WSJ reveals readership trends across different devices
The news organization's tablet usage (mostly iPad) begins first, at five in the morning, with print following shortly thereafter. As people transit to and arrive at work those consumption methods fall precipitously.
Subsequently, mobile phone and desktop access rise, then hold steady throughout the remainder of the working day. Tablet usage begins to pick up again in the evening, and usage of WSJ Live, the company's streaming video app, peaks in the evening at 10pm.
Shapira said that this is evidence of either digital video consumption replacing television, or, additive second-screen viewing.
In either case, this level of advanced penetration of owned properties throughout an array of devices and content-formats is an impressive success for the 123 year old brand.
In part, the success of these products is no doubt attributable to the company's aggressive participation in numerous public-ish social media channels. According to a shared slideshow from March, the company maintains over 100 Twitter accounts, with over 2m followers.
Social sharing within Facebook is the largest source of traffic referral, and the company maintains 14 brand pages with 600k likes. The company has additionally embraced Pinterest, and is active on Instagram, where it has over 15k followers.
As brands consider implementing content strategies, they would be wise to pay attention to publications like this. At one point, the Wall Street Journal was just a newspaper. Now, it has the potential to poach eyeballs away from TV advertisers.
It isn't that every brand should desire to become a full-fledged news service, it's that the opportunity to deeply penetrate into the lives of consumers is there, for those who can figure out how to do it.
Your tablet loves Mad Men: new report explores the multi-screen reality
There has been a great deal of attention and research directed at the multi-screen recently, and with good reason. 65% of the respondents with a tablet in our study said they were likely to be using a second device while watching television...and that number goes up for those 18-44 years old.
Even most people with only two screens (TV + computer) are more likely to be online while watching than not (52%).
The Multi-Screen Marketer explores some of the effects of these behaviors, and tries to lay out an approach for publishers and advertisers.
How does the distraction of the second screen affect attention?
When someone has another device at the ready, their attention can shift from the screen the moment they lose interest. Whether it's a commercial break or just a break in the action, they're off and mentally running. Studies have already shown that commercial blocks invite the heaviest multi-screen behavior.
We wanted to measure how this could impact advertiser recall. Respondents were asked to identify their favorite television program, and then asked if they could identify specific advertisers associated with it. We expected that the less people fit the mold of the multi-tasker, the more they would recall, but that's not what we found.
Overall, 46% of survey takers were able to identify between one and three advertisers. Surprisingly, four screened respondents (TV, computer, smartphone and tablet) were more likely (53%) than those with only two screens (42%). Again, younger tablet owners did even better...61% could recall at least one advertiser.
Of course, this doesn't capture some very important pieces of information; we don't know anything about messaging recall or sentiment. You can be sure that studies will fill in these gaps.
Does the type of content (TV program) correlate with multi-screen behaviors?
Television programs aren't all the same, even if it feels that way when you've got a remote in your hand. Respondents were asked to identify their preferred program types (procedurals, sports, reality, etc.) and given three randomly chosen questions about their behaviors from a total of six possible questions (to avoid overload).
Three of the behaviors were "commercial" - related to online shopping, product searches, etc., while the others related to general online surfing and searching for media-related information.
Findings are broken down in detail within the report but one of the highlights was discovering that independent drama (Mad Men, Breaking Bad, etc.) is a hotbed for both commerce and non-commerce related second screen behaviors.
People are somewhat more likely to shop for products they've seen during the program (show + commercials) and to do things like connect on social networks, than during any other program type. At the other end of the spectrum are procedural dramas.
Where are we headed?
Connected TV is already here, but few people have bought them so far, and those that have often aren't using them to their full potential.
We asked respondents to describe television of the future and the televisions of the future, and to gauge the impact of these expected changes. At the top of the list is the ability to watch anything, anywhere, anywhen. Not surprising and unlikely to be fulfilled any time soon, because of the basic business models of the primary players.
The second highest priority is for a television that listens and more importantly, does what we tell it. Voice recognition scored well, as people acknowledge that between multiple remotes, hundreds of channels and piles of accessories, it can be complicated to find or record the content we want.
Other top priorities center around the multi-screen experience. People expect to be able to watch programming on any device, and then move it simply from one device to another as they travel.
Naturally, we gravitate to the best available device, but often that is the most available device. Watching a film on a smartphone is sub-optimal, unless you're on a subway, in which case it's sublime.
Other Findings
The Multi-Screen Marketer looks at a number of other topics including how social is really a private activity, how multi-screeners use online information during the purchase process and how TV viewing is shared among devices.
Thanks to the sponsorship of the Interactive Advertising Bureau, the report is available to all Econsultancy members, bronze and higher.
Because one size doesn't fit all: A Redken case study
The purchaser reigns supreme
For Redken, a hair-care brand and L’Oreal subsidiary, the purchaser rules the day. The company demonstrated its commitment by funneling funds toward a third-party research effort last May before it embarked on a large mobile initiative.
It was a key decision that helped the company better understand its industry; for instance, Redken learned that 16% of the hair-care sector uses iPads and tablets, with the former predominating. Of that percentage, 44% skewed towards a younger age bracket.
The company also learned that 63% of hair-care professionals owned smartphones, a finding that had Kress skeptical. Hairstylists have “always been late adopters,” she said. “They don’t sit at a computer. They’re never online.” Not so the modern stylist.
The findings prompted the company to design mobile strategies unique to its three target groups:
Cosmetology students,
Hairdressers.
Consumers.
However, this still allowed it to apply an overall strategy to make the most of Redken’s existing network and existing purchaser behaviors. Next the company identified business objectives for each group because, like its mobile strategies, no one objective unified all.
Approach to students
For its student target group, education was Redken’s goal. The company used its nationwide network of franchise schools, and because it had learned that iPads predominated among that group, created an educational site designed especially for that device.
Emphasizing responsive design in its approach and understanding that visual learners compose its audience, Redken produced 100+ videos for the site and partnered with YouTube to stream the videos in a cost-effective manner.
The results?
The company has saved on textbooks it formerly published for its schools. Redken has also saved on time and labor because it finds it easier to update the site than to revise textbooks.
Plus, applications to its schools are up, and the company can now capture student data in a way not available to it in the past.
Approach to stylists
Although stylists are now online more often, they’re still on their feet during most of the workday. That understanding pushed Redken to focus their attention on apps informed by stylists’ habits and what actually takes place in a salon.
Following the customer journey, for example, a stylist’s client would first decide on a color shade. Hair swatches are typically used during this step, but Redken created an app that displays different hair colors:
Most people follow routine and gravitate toward the same 10-15 shades, but Redken wanted to expand that selection to include its underperforming products so it began integrating those products into the formulas for the dyes that stylists would have to mix.
Finally, its app incorporated a look-book feature that allows stylists to capture cuts and dyes they’ve done in the past to not only show off their work, but also to give clients options.
Throughout the mobile push, the company was focused on frequency or how many times their app was used, not how many times it was downloaded. “We didn’t want to just have a download party,” said Kress.
The results?
Redken saw a 13% increase in the usage of its underperforming products, as well as an 18% jump in the sales of new products. (The app gave the company another forum in which it could showcase new products, Kress said.)
It also saved costs because the company no longer had to print books that featured its hair-color formulas.
Approach to consumers
Here Kress was adamant about Redken’s attitude toward the wide swath of consumers it targets (women age 18 and older): “We are not ecommerce,” she said. “We believe in the hair stylist and the hair professional, so it’s really about driving consumers to the salons and services to buy our product”.
To that end, the company had to make a choice: Did it want to focus its attention on a mobile website or an app to get consumers to salons?
Redken chose the former, with Kress supporting Redken’s decision by leaning heavily on the recent finding that more Facebook traffic arrives via the mobile site than through the company’s app.
She explained how Redken partnered with Google for paid search and SEO, which yielded the perhaps unsurprising finding that Saturday is the most popular day for mobile traffic seeking salons.
Other results?
The company learned that 18% of traffic to Redken.com is via a mobile device. There’s also been a 22% rise in visitors using the company’s salon-locator feature.
Conclusion
1. Know your audience. Conduct thorough research, said Kress. While ComScore data is valuable, you shouldn’t rely on it alone.
2. Understand the technology but don’t get caught up in it. The hype around Pinterest is exciting and important to follow, she said, but marketers should be more cautious in their approaches.
3. Evolve. Of all the platforms, Kress believes mobile changes the fastest, and marketers should be flexible about their strategies and workflow.




