If you want to understand how social media works, listen to the Facebook earnings calls. I tell people this.They don’t listen to me.
That’s why I’m happy to tell you my little secret here, because you probably would rather pay two thousand dollars to go to a half day workshop and listen to people who aren’t Mark Zuckerberg and Sheryl Sandberg talk about social media. That’s up to you.
And then Sheryl would have explained to you that social media is still a very small part of most brand’s marketing mix and that there is still a big job to do with marketers getting them to understand how to use and measure the ad products to demonstrate ROI. That would have explained to you the Twitter Australia/ Nielsen TV presentation last night and also the overly sorry apology from Twitter CEO Dick Costolo for not zapping enough trolls because they need to reposition Twitter as family friendly. The proactive communications machine roared into life well before the Twitter earnings results this morning which showed that, other than the Google deal, there wasn't much to say.
Apparently the Twitterati trolling politicians like former Prime Minister of Australia Tone Abetz for calling social media ‘electronic graffiti’ is not good content for top media buyer Woolworths selling 85 cent loaves of bread to working families so everyone needs to be a bit nicer so Twitter can attract newer, more gentle, kid’s lunchbox users and take some TV ad revenue. You would have heard Mark Zuckerberg explain very clearly to you that social media updates started as text and then went to photos- where Facebook got the big mainstream growth surge from- and that the next wave is mobile video. So if you want to make your posts to rank well on Facebook, perhaps you could post a video? Just a thought…
If you are the one person that heeds my advice, then the Twitter earnings call this morning is a walk in the park to understand. You would have heard Sheryl talk about the growth of video on mobile and instantly understood why Twitter have incorporated video into their mobile app this week.
You would have heard Mark talk about search and providing a search experience that ‘nobody else on the internet can provide’. By that he means Google. So then you would understand why Twitter has restarted their deal with Google to index data for search because everyone seems to go through the process of figuring out that a walled garden always seems like a good idea for ad revenue but it’s a big fail for content and discovery.
You would have heard Sheryl talk about ‘next generation’ products like Facebook Messenger and WhatsApp and understand why Twitter launched group direct message functionality.You would have heard the Facebook CFO chappie Dave say (at great speed) that ad prices went up 300%, mainly due to growth in mobile video ads and because they can measure stuff better now. Um what? Yes the prices are going up.
It’s brilliant, Facebook tells you everything. You have to be a bit more Turing code-breaker to pick the winners in the Google call because it’s basically everything they aren’t talking about that’s interesting. Analysts are spooned up some token numbers about ad network rates that don’t really mean much and then there’s a dismissive hand waggle to ‘emerging non-ad business’ and Google for Work’s plans to take over the world with their operating systems and work tools …look at the self-driving magic Noddy cars everyone!
Today, Facebook is setting the pace in social, definitely in a commercial sense and arguably in an innovation sense and they are worth listening to to give you clarity about the big chunky things that matter in the industry whether you personally like Facebook as a platform or not.
But that’s up to you.