Category Archives: Social Media

Twitter Shares Fall Further

Twitter shares fell over 10% after the fourth quarter revenues have disappointed. Growth in sales has fallen for tenth quarter in a row to $717 million. The net loss was $167 million, which stands for 23 cents per share. Without certain expenses, Forbes reports, the company would have earned close to $120 million.

 

In comparison to Facebook, Twitter monetizes its users at 50 percent the rate. Meanwhile, monthly active user base has grown to 319 million, representing 4% increase. Last quarter, two million new users were added. Twitter also announced first quarter expectations. The earnings before taxes are expected to fall between $75 million and $95 million, which is far less than $190 million expected previously by the analysts covering the company.

 

According to Twitter’s Chief Operating Officer, Anthony Noto, growth in revenues will lag. One reason is increasing competition for advertising dollars, the other is related to de-emphasis of certain products.

 

“We’re focusing our investments on revenue products that strengthen our unique value proposition, especially in live and video,” claimed Noto. He added that positive feedback has been received from advertising partners.

 

In comparison to Facebook, Twitter is losing steam when it comes to attracting a larger user base. For instance, Facebook-owned Instagram has 600 million monthly users. And when users were asked which social media platform they’d choose if they had only one choice, two-thirds said they would choose Facebook, while only six percent would opt for Twitter.

 

Back in 2014, Twitter shares were trading close to $70, now the price has fallen under $16. After a new social media IPO came from Snapchat, analysts are already comparing the latter company to Twitter rather than Facebook. Presently, Snapchat’s market cap exceeds $30 billion, while Twitter’s is around 40 percent of it. On the other side, the market values Facebook is close to $400 billion.

 

Snapchat Goes Public

Snapchat is six years old and has become popular among younger generations. It allows users to take pictures and add cartoonish images with this app. This social media company just went public and now trades on NADSAQ under symbol “SNAP.”

 

Within the first couple of days, the stock price rose substantially, and now the company is worth $30 billion. This makes a Price/Sale ratio of 77, while the company isn’t profitable yet. This worries many analysts who feel the price isn’t warranted by fundamentals. But, speculators love to trade it.

 

According to CNN Money, Snapchat is now worth more than Delta Airlines or CBS. In fact, its market value is higher than that of nearly 400 companies on the S&P 500 list.

 

The company lost over $500 million last year, and this is up from over $370 the year earlier.

 

In the past, investors who bought Facebook and Google have prospered. But Twitter has disappointed investors. What makes Snapchat so special to warrant its valuation? Some believe the company has lots of potential when it comes to monetization. Others don’t think this stock is worth the money.

 

“It is significantly overvalued…We value Snap at $10 per share,” claimed Brian Wiesel, an analyst at Pivotal Research.

 

What’s more, Snapchat’s user growth has halted in the last months of 2017 after Facebook launched Instagram feature that copies much of what Snapchat has to offer.

 

Whether overvalued or not, investors won’t have much to say yet. The majority of the votes are in the hands of Snapchat’s founders.

 

 

 

Snap’s Core Mission Powers Its Rise

Social media connects consumers directly with a digital product and/or service. That kind of reach, coupled with instant gratification, has changed how businesses offer products and services and even how they establish business structures. Take Snapchat, or Snap Inc., as it is now called. The company is now a camera company, not a social media company. On March 2 it went public and earned $3.4 billion on the first day of trading.

 

What follows is a quick timeline explaining how a social media app transformed into a high-tech company. Here’s a hint: self-confidence and adherence to a core mission.

 

By now, most people know that the Snapchat app distinguished itself from other social media apps by making pictures and posts disappear. For teens, whose social media is prone to adult monitoring, this fulfilled an essential need. It took some time before the app caught on, but once it did the number of Snapchat users surpassed the number of Poke users, the Facebook competitor. When Facebook offered to buy Snapchat for $3 billion, Snapchat CEO Evan Spiegel turned it down. That’s the example of self-confidence.

 

An example of core mission adherence is seen throughout Snapchat’s evolution. When Snapchat offered new services to remain competitive, they stuck with their original mission. They stuck with photos and pictures. From geo-filters to funny filters and photo-based stories, Snapchat never offered extraneous options or branched out into non-photo-based services.

 

Before going public, Snap Labs was hard at work on smart glasses. These glasses are meant to take pictures. Simultaneously, Snapchat shifted its industry description. It is now a camera company. Social media companies and start-ups should pay attention. Snap’s social media has become a platform for its products. The platform is no longer the product. Photos, not social media, were always the core mission.

 

Snap Inc. is Introduced to the Stock Market

Snapchat took the world by storm in 2011 after it was developed by three friends from Stanford University. The unique feature behind this application is that the pictures and videos sent can only be seen for a short period of time before they are deleted. This feature brought a new system of communication to the social media platform. With popularity soaring and daily usage reaching in the millions, Snapchat founders changed their business name to Snap Inc.

After large success and receiving offers from major competitors like Facebook, Snap Inc. decided it was time to go public. They made their announcement about publicly selling shares of their business to the excitement of investors around the world. March 2, 2017 marked their first day of public trade. The hype surrounding this stock was massive. Unsurprisingly, Snap Inc. became the most active stock on the NYSE on its debut day. Snap Inc. grew an impressive 41.2 percent from its original pricing. This put the company at $24 a share from the beginning. These numbers put Snap Inc.’s market capitalization at $33 billion. In comparison to other social media giants, this is an impressive opening market cap. All signs point to steady growth as the first day of trading is closing out.

Supporters point to the potential success of Snap Inc. along with the visionary leadership of the company’s CEO Evan Spiegel. Critics on the other hand see the company’s reported $515 million loss last year as a sign of trouble for the future. Regardless, the excitement and hype surrounding the IPO of Snap Inc. has led many people to invest. While much of the predictions are simple speculation, time will tell whether or not the new social media company will be able to capitalize on these investments and continue to grow their brand.

Teen TV Star Launches Talent Agency with $1 Million

Many young people are chasing the dream of becoming social media only to find that the business side of social media has become very competitive. Worse still, these aspiring web personalities have trouble finding mentors. If only there were an experienced, young social media star to provide some guidance to these young people. As it turns out, there is.

According to TechCrunch, teen star Jake Paul (best known for the TV show “Bizaardvark”) plans to transform himself into a social media titan. His new company, TeamDom, has raised $1 million to fund its talent management business. Paul plans to leverage his millions of social network followers and his experience as an influencer to help minor social media stars become major social media stars. He has already had some success doing just that.

Paul, undeniably, knows what it takes to create a social media following, but does he have what it takes to run a successful business? That remains to be seen. Even very popular social media stars have found it difficult to monetize their success. It seems challenging, therefore, for a business to monetize the monetization of social media stars.

That does not mean that it cannot be done, though. A few years ago, it would have seemed inconceivable for a teenager to become a TV star based on his social media videos, but that is exactly what Paul has done. His originality could translate into success for TeamDom.

It is also a safe bet that small-time social media stars will flock to the new start-up. They will likely see in TeamDom a group of mentors who are peers and who understand the ins and outs of gathering a social media following. If the demand for TeamDom’s services are high enough, the company could be a success.

 

Fake News Stories Impact Brands in Social Media

The fake news phenomenon was first discussed during the surprising election of Donald Trump as President of the United States. Now that we are in the early days of the Trump administration, the issue of fake news is boiling over and starting to inflict collateral damage on businesses that engage in social media marketing.

 

According to a January survey conducted by Ipsos Public Affairs on behalf of BuzzFeed, the majority of Americans no longer trust the news stories they see in their social media news feeds. Facebook is the second most popular source of news stories for most Americans; only broadcast television is more popular by just one percentage point.

 

Credibility is an important aspect of a solid social media strategy; marketers are worried that the fake news scandal that rocked the 2016 presidential election could erode trust between established brands and the public. Brand managers should remember that the current political climate is too risky.

 

The digital marketing landscape has been tarnished by fake news stories. Even though American law enforcement officials are investigating these incidents, social media strategists believe that the damage will have lasting negative consequences. Brand managers should steer clear from discussing fake news stories with their social media followers for the time being. Unfortunately, this issue is very divisive from a political point of view; therefore, online brands should avoid any mention of this sociopolitical phenomenon over the next few months.

 

Social Media Comments Cause a “Brew-ha-ha” in California

The owner of a craft brewery in the Golden State has learned some very hard lessons about the role of social media in modern business.

 

According to a January report broadcast by CBS13, a Sacramento television news station, the 12 Rounds Brewing Company is facing a boycott by local craft beer lovers who do not approve of Facebook updates posted by owner David Murphy, who appears to be a supporter of U.S. President Donald Trump.

 

Murphy started the “brew-ha-ha” with a post that was not well received among those who follow his brewery on Facebook. Murphy’s post slammed the people who participated in the Women’s March against Trump, a protest that largely overshadowed the Presidential Inauguration. In his social media update, Murphy referred to protesters as “garbage.”

 

It did not take long for Murphy to realize that he incited the fury of the social media machine. Within hours, Facebook followers of this East Sacramento Brewery started organizing a boycott; the initial action was followed by hundreds of negative reviews on Yelp.

 

Business owners these days must exercise caution when expressing religious and political positions on their social media channels, particularly on Facebook.

 

Murphy felt the backlash and did exactly what a business owner should do in this situation. He posted heartfelt apologies on Facebook and Yelp. Some of his most loyal customers came to his defense, explaining that he is entitled to make mistakes. In these cases, the damage does not have to be permanent and business owners can make amends with their customers.

 

Selecting the Right Social Media Platform for Your Business in 2017

Business owners and brand managers who did not get around to making a New Year’s resolution for 2017 should think about consolidating their social media assets down to a few meaningful platforms. Although having a widespread social media presence is not a bad idea, the time, effort and investment required to service all social networking accounts may eat away at your business resources.

 

According to a survey published by AllBusiness.com Facebook will continue to be the most popular social network in 2017. Nearly 70 percent of social media netizens choose Facebook as their favorite network; surprisingly, the second most popular is not Twitter. LinkedIn accounts for almost 40 percent of total social media usage, followed by Twitter with 34 percent and Instagram with 27 percent.

 

If you feel tempted to focus your social media marketing efforts on Facebook for 2017, you are not alone: 50 percent of American business owners plan to do so as well, and herein lies the problem: internet marketing analysts believe that this network is becoming too crowded and competitive. To this effect, most brick-and-mortar businesses will probably benefit from being active on Facebook; however, B2B companies should not ignore LinkedIn as a marketing platform.

 

Owners of micro businesses such as hot dog carts and food trucks find that a website and a Twitter account are their best options. Fashion boutiques and other businesses that thrive on visual content are better off using Instagram. Companies that mostly cater to members of the Millennial Generation should not ignore the power of Snapchat.

 

 

How to Take Full Advantage of Social Media Marketing

Social media marketing has become very popular of late and continues growing in popularity by the day. However, many businesses have either been doing it wrong or not using it to its full potential. They need to know how to find people discussing issues that affect their brand and engage with them. This is known as social listening. In order to make your social media marketing campaign effective, you need to invest in social listening. This means going out of your way to ensure that you know who is talking about your brand and what they are saying about it.

 

You also need to know the relevant keywords to use when looking to have a conversation with your target audience. Social listening is impossible without the right tools and it is, therefore, important to find out what tools are available and make use of them. You need to come up with a strategy on how you will engage with your audience without any group feeling left out. Finally, monitor the progress you are making in social media marketing and see whether you are meeting your objectives. If not, you need to make some changes to your social listening and engagement strategies.

 

Businesses need to learn how to engage with their audiences for their social media marketing campaigns to be more effective. By following the guidelines above, they will be able to know what content interests their audiences and therefore post only relevant content on their social media pages. This way, they will be able to address the needs of all people interested in their brand and make their services and products known to more people.

 

Facebook Messenger Begins Testing For Business Ads

Facebook is well known for keeping in touch with family and friends and for sharing funny videos. The test to integrate ads into Facebook’s Messenger has begun. The company has said that it will launch its characteristics as a small test in Thailand and Australia, which will for the first time allow businesses to have their ads placed on the Messenger home screen. This style of advertising entails a large thumbnail image followed by a text and a link of the same. These ads will appear below recent conversations.

 

The link will be able to direct users on taking different actions like clicking to learn more about the service or the business in question. This action is similar to the way that Facebook business pages today can directs users to start a chat.

 

Currently, the ads sit on a huge space on the home screen, which is below your favorites and up above the section that shows which friends are online. This feature about the Messenger makes it less user-friendly since you will have to scroll way past the large ads which you may not be interested in.

 

Facebook has, however, promised that the ads will not appear in conversations not unless the user clicks on the ad itself or chooses to start a chat with the brand being advertised. This will make it more convenient for its users.

 

Generally, businesses have been waiting for this moment for a long time when they can use the Messenger platform to reach to their customers and increase their sales easily, gain brand awareness and increase interaction with customers. It is clearly an exciting feature for them as it will lead to growth for their respective businesses.