Conference Presentation, Panel, Fireside Chat
Brand Battlefield: Mobile and Social Networks
Milken InstituteSean Amos, Josh Mandel, Bonin Bow, Jamie Goodfriend, David Rockefeller Jr., John McWhorter, Eric Schmidt, Josh Tenenbaum, Jimmy O., Kathleen King, Mike McDonald, Serena Rosso, Ron, Nick Smoot, Carolina Tolberti
- Social media and digital device usage are established permanent trends, with consumers spending more time on devices than watching TV and 50% of children under 17 accessing the web mobile-only, though current media spending on mobile remains below 1%.
- The US millennial demographic represents $200 billion in spending today and is projected to reach $400 billion in a few years, driving a massive takeover of business influence.
- 84% of purchasing decisions are influenced by friends and family, necessitating brands to shift from campaign mode to conversation mode and provide shareable content to engage this demographic.
- A shift is occurring where 60% of the 50 to 64 age group in the US is active on social media, making it the fastest-growing demographic on Facebook, and digital adoption is expected to become universal across all age groups over time.
- Trust is shifting from institutions to individuals, requiring organizations to leverage sales forces for authentic personal sharing and senior executives to act as practitioners rather than relying on outsourced "ghost-tweeting."
- Brands must embrace owning a point of view on social and political issues to meet millennial demands for transparency, a strategy that carries the risk of backfiring but offers opportunity if led with courage.
- Emerging markets represent a critical growth area where mobile is the primary media device, exemplified by platforms like WeChat in China which boasts 800 million users, a scale often underestimated.
- Digital companies migrating into older consumer packaged goods organizations will bring "digital affluence," challenging established firms to determine their competitive readiness.
- A "war on talent" is predicted for the next two to three years due to MBA graduates being unprepared for the digital economy, requiring corporate America to engage in re-skilling rather than relying solely on hiring.
- Marketing agility requires building process and muscle memory over a period of two and a half years, while compliance departments in financial institutions are gradually shifting ownership of social media programs to CMOs and sales heads within 24 months.
- Technologies are outpacing social, regulatory, and legal frameworks, creating an opportunity for regulators to learn these technologies.
- iBeacons and in-store technology are expected to transform the marketing loop, carrying a specific risk of brands using them for obnoxious spam.
- Consumers are willing to trade privacy for value, entertainment, or better deals when brands provide superior customer experiences.
- The ecosystem of the social web is expected to evolve into a collection of strong players rather than a single dominant platform, with current revenue for major platforms like Facebook, Twitter, and LinkedIn derived primarily from advertising.
- A shift toward software-as-a-service (SaaS) models with subscription revenue is identified as an underutilized opportunity for the industry.