Today, there are 2.8 billion active social media users (+21% YoY), or 37% of the world’s population, compared to 3.8 billion people, or 50% of the world’s population, who are connected to the internet (source: according to GlobalWebIndex). In 2016, social media continued to experience several changes that require marketers to take notice. The first transition concerns the multitude of social platforms and the rise of chatting apps. The second transition has been changes in mobile and video usage. The third transition involves the integration of social features into online commerce and content websites, or the development of “social core”. The increasing penetration and use of mobile, has turned messaging apps into an important type of social networks. In 2016, 27% of the population accessed social media from mobile devices – 1.97 billion people. In 2017, 34% of the world’s population, or 2.55 billion people, use social media on their mobile phones (+30% YoY). Messaging apps are very popular among younger users, with Snapchat the most-used social media platform among 12 to 24-years-olds.

1. Social Media Trends & Innovations
Hamutal Schieber | March 2017

2. Introduction
• Social Media platforms have been changing the way we interact, network,
and collaborate, for years now. More recently, they began to change the
way we shop, consume and share content, and work.
• With mobile penetration increasing, messaging apps have become the
most important type of social networks. The importance of video content
drives social networks towards development of video making, uploading,
sharing and consuming solutions.

3. The Development of Social Media
Social networks,
desktop + mobile
Social networks,
desktop + mobile
Chat apps
Chat apps
“Social cores” –
social media is an
enabler rather than
a utility; user in the
center
Peer to Peer
Brands
Peer to Peer
Brands
ambiguity and transparency
From channel specific to consumer specific: Trends in Social Media

4. Understanding Social Media to Develop a Social Core
• It is important to understand the different characteristics of the platforms in order to understand what
the consumer expects on each platform; and at the same time, to look beyond the platform to create
a personal experience leveraging the unique benefits of each.
• This presentation examines main platforms and behaviors in the “social media” sphere, as well as
best practice in addressing each trend:
WHO WHERE WHEN HOW WHY WHAT
Users &
Demographics
Platforms Social media & the
path to purchase
Devices and
usage
What consumers are
looking for
Content and
behavior trends

5. The Social Media Landscape, 2017
Globally, there are 2.8 billion active social media users (+21% YoY), or 37% of the
world’s population, according to GlobalWebIndex, compared to 3.8 billion people, or
50% of the world’s population, who are connected to the internet.
Source: WeAreSocial, Hootsuite, Jan. 2017

6. -100%
-50%
0%
50%
100%
150%
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Monthly Active Users (Million)
Nov. 2015 Jan. 2017 % CAGR
Leading Social Networks
Source: WeAreSocial, Jan. 2016, Jan. 2017 | *Tumblr data is WeAreSocial estimate-based so this
figure may not be accurate.
Whatsapp Feb. 2017 stats according to Facebook: 1.2 billion MAU
As this graph demonstrates, Facebook, Instagram and Tumblr*, achieved both a solid base and an impressive growth
between Nov. 2015 and Jan. 2017.

7. Chat Apps, Monthly Active Users (millions), Nov. 2015 vs Jan 2017
900
700
860
650
300
200
249
211
1200
1000
877 846
399 399
249 217
WHATSAPP FACEBOOK
MESSENGER
QQ MOBILE WECHAT SKYPE SNAPCHAT VIBER LINE
Nov. 2015 Jan. 2017
+30%
+43%
+100%
Among messaging apps, Snapchat, Messenger, WhatsApp and WeChat achieved the fastest growth between Nov.
2015 and Jan/Feb 2017.
Leading Social Networks | Messaging Apps
WhatsApp Feb. 2017 stats according to Facebook
+33%

8. Social Networks | Demographics
• The most active social networkers are 18-29 year old users;
participation decreases with age.
• With a 72% adoption rate, Snapchat is the most-used social
media platform among 12 to 24-years-olds.
• As Facebook seeks to engage a younger audience, it may either
try to continue and leverage Instagram as a Snapchat rival,
maybe even integrating Messenger into Instagram, instead of the
other way around.
0%
20%
40%
60%
80%
100%
18-29 30-49 50-64 65+
Social Networks Use by Age
Group, Pew Research Center,
Nov. 2016
38%
35%
30% 30% 29% 29% 29%
25%
Snapchat Instagram Twitter Facebook
Messenger
Youtube Linkedin Whatsapp Facebook
% of engagers/contributors who are 16 - 24 years old, source: GlobalWebIndex Q3 2016

9. Major Trends
Trend Description
Mobile • In 2016, 27% of the population accessed social media from mobile devices – 1.97 billion people.
• In 2017, 34% of the world’s population, or 2.55 billion people, use social media on their mobile phones (+30% YoY).
Video • Brightcove’s “The Science of Social Video”, a survey of 5,500 consumers in the UK, France, Germany, US and
Australia, found that consumers were spending an average of 6 hours a week watching video content on social
media networks.
AR/VR • Virtual reality (VR) is a growing technology, enabled by more affordable devices that were not available in the past.
With 360 degree video making, VR may become integral to marketers’ strategies within a few years.
• Facebook sees VR as a strategic, but more long term investment, as it keeps leveraging the Oculus acquisition;
however, it has acquired an Augmented Reality (AR) company and might expand its abilities there.
Commerce • GlobalWebIndex’s research shows that over 30% of US adult Facebook users turn to social media when they are
researching products online. With 8 in 10 US Facebookers purchasing products online each month, there’s clearly a
huge opportunity to bring some of these purchases inside social networks.
Wearables • Cashing on the “internet of things” growth, especially in wearables, Snap launched “spectacles” in 2016, which
record videos to be uploaded to its Memories section. At the same time, wearable companies – such as Nike, Fitbit –
integrate social networking, but without specific focus on this component.
Voice • Following text, emoji and video, voice might be the next trend, with apps such as Bubbly

10. Major Trends | Mobile
• Messaging apps are
becoming more
valuable due to the
rise in mobile – esp.
in younger people;
companies engage
consumers by giving
them tools – such as
emoji keyboard.
• Dunkin’ Donuts: a special emoji keyboard for
Valentine’s Day 2017; suitable for all chatting
platforms.
GlobalWebIndex’s Q1, Q2 & Q3 2016 online research

11. Major Trends | Mobile
• Schieber Research believes that apps such as Slack (which has a mobile version as well) –
that provide a “one stop shop” on one hand, but enable ultra-specification on the other, will
be the future of messaging apps.
• Slack was intended for use as an internal business network,
but people started using it for personal use, as well.
• In October, 2016, the company reported that it boasts 4 million
Daily Active Users, or 5.8 Million Weekly Active Users. This is a
far smaller number than the aforementioned platforms;
however, the integration with various apps, the integration of
bots for service, and the fact that 1.25 million users (more than
25%) are paying users – lead us to believe that Slack is the
rising star of social media.

12. Major Trends | Video
• Brightcove’s “The Science of Social
Video” survey of 5,500 consumers in
the UK, France, Germany, US and
Australia, found that consumers were
spending an average of six hours a
week watching video content on social
media networks alone. Two-thirds
(67%) said that this amount had
increased in the last twelve months –
one fifth said considerably so – and
three fifths expected it would continue
rising over the next year.
Source: GlobalWebIndex Q3 2016 | Base: Internet Users aged 16-64
• The research also pointed to a connection between watching a video on social media and their
purchasing decision-making process: nearly half (46%) said they had actually made a purchase as a
result of watching a branded video on social media, while another third (32%) had considered doing so.
• GlobalWebIndex Q3 2016 data shows that right now, only 20% of Facebookers upload videos to the
site, but on Snapchat a third are sharing videos and, on WhatsApp, the figure reaches nearly 50%.

13. Major Trends | Video
• Live + 360 degree video are
the latest trends in social media video,
delivering a rich real-time and personalized
experience to video, and bridging the physical
world with the digital world.
• Google is a leader in 360 degree video, as a
result of 2 assets owned by the company:
Youtube 360 videos delivering content – and
Google Cardboard, delivering the watching
device and providing an immersive
experience. Google even developed 360
cameras in collaboration with GoPro.
• However, in 2016, live video garnered more
attention than 360 degree videos: This
segment is led by Facebook.
Source: GlobalWebIndex Q3 2016 | Base: Internet Users aged 16-64

14. Major Trends | Video | Facebook
• To make it easier to find and watch videos, Facebook added a
tab at the bottom of the Facebook app with top videos and
recommendations.
• Facebook reported New Year's Eve its biggest live moment
ever. The company is experimenting with live 360 video, audio-
only live for people with slower connections, and live face
masks and more camera effects.
• On its Q4 2016 conference call, the company said it is looking
for ways to grow the ecosystem of video content on Facebook
to turn it into a place for interesting and relevant video content
from professional creators as well as from friends.

15. Major Trends | Video | Facebook
• Facebook is using Facebook.com, Instagram,
Messenger and Whatsapp, to respond to
trends in mobile and video demand on the one
hand – and to competitors, first and foremost
Snap, on the other hand.
• Lenses, “stories”, limited time – these
Snapchat-like features were integrated into
Instagram with “Instagram Stories” (boasting 150
million monthly active users just 5 months after
the launch), and more recently into Messenger’s
“day in a life” feature, enabling users to upload
photos/ videos and define reach and durability.
• In light of its recent acquisitions, the company
will experiment in augmented reality, on top of its
VR strategy – further strengthening the
company’s lens capabilities.

16. Monetization Strategies
• Social media platforms are
building towards monetizing
their large user base,
integrating advertising,
marketing tools, service and
finally, commerce.
• Facebook’s $ 8.8 billion
revenue is almost entirely
composed of advertising-
derived revenue, with other
types of payments generally
decreasing. Total revenue grew
by 51% YoY and advertising
revenue was up 53% to $8.6
billion.

17. Monetization Strategies | Marketing
• Social media platforms allow marketers to create tools for use in the app, advertise and use proprietary
data to learn about users.
• It is important for marketers to adapt to the different characteristics and main user motivations of each
platform, so as not to be considered as a distraction.
Using Instagram
Stories to reveal
new products,
designs
Instagram
Starbucks launched a
Keyboard for mobile –
its first emoji app
Messaging Apps
Using the sponsored lens
format; promoting causes
and launching initiatives
SnapChat
A strategic partnership
with WeChat’s holder,
co-creating a new
social gifting/ in store
payment
WeChat
Starbucks uses a mix of social media channels to convey different messages, tailored to the
demographics and uses of the platform. As a result, the company enjoys a high rate of
engagement

18. Monetization Strategies | Marketing
• According to Facebook, premium fashion brand Michael Kors
collaborated with Facebook, as well as Facebook Marketing
Partner SocialCode, to develop a full-funnel campaign. Using a
combination of link ads and carousel ads, the fashion brand
drove traffic to its physical stores, and then used offline
conversions to measure the impact its ads had there.
• Results: 33% increase in attributed return on ad spend; 31%
increase in attributed transactions; 25% increase in attributed
revenue
Source: Facebook

19. Monetization Strategies | Marketing | Snapchat
• Snap, which recently completed its IPO, reported a 2016 revenue of $
404.5 Million with $ 514.6 million loss, compared to 2015’s $ 58.7
million revenue and $ 372.9 million loss.
• The company’s revenue model is based on advertising (98%) as well
as 3rd party content. the company boasts 158 million daily active users
with 2.5 billion daily snaps.
• The company offers “geofilters” – self designed filters that are
connected to a specific location and are free for “communities” but
carry a fee for businesses.
L’Oreal offered a
Valentines Day lens
with bright lipsticks.
The company launched
Snapchat Specs – connected
spectacles that are sold online
(after being sold exclusively
through vending machines) and
Snapcash payment options.

20. Monetization Strategies | Marketing | Snapchat
• Sports drinks brand Gatorade found success with the
Sponsored Lens in Feb. 2016, featuring Serena Williams
featuring a lens which let users experience a virtual dumping
of the drink. As a result, Gatorade received 165 million views,
and saw an 8 point increase in purchasing intent from those
who engaged with the Lens.
• In August 2016, the brand offered a tennis Snapchat game,
with Williams’ pixelized character.
In May 2016, for Cinco de
Mayo, Taco Bell launched
the most-viewed Snapchat
lens ever. The lens
allowed users to turn their
face into a taco. It resulted
in 224 million views in one
day, according to AdWeek.

21. Monetization Strategies | Commerce
• GlobalWebIndex’s research shows that over 30% of US
adult Facebook users turn to social media when they are
researching products online. With 8 in 10 US Facebookers
purchasing products online each month, there’s clearly a
huge opportunity to bring some of these purchases inside
social networks.
• At the same time, online and mobile commerce websites
integrate social-media components – and physical stores
integrate to social media (e.g., through dressing room photo
sharing enablement via smart mirrors)

22. Case Studies: “Social Core”
“Collaboration economy” websites are usually based on social networking components. But
beyond that, many companies begin integrating social components such as peer to peer
chats and recommendations and UGC based content.
Airbnb’s success is largely attributed to the successful
creation of an online community, built on the mutual
interest in “collaboration economy”. The community
shares ideas and tips from hosts and guests, and
provide inspiration. The company even offers specific
subject-related groups – and encourages face to face
meetups.
On November 2015, TripAdvisor launched a “Travel
Timeline” feature for its mobile app that helps travelers
conveniently log and share experiences from their
trips. Once activated, the feature automatically creates
a timeline of the places travelers have visited and the
photos they’ve taken at each location, which can be
viewed in chronological order or as a route on a map.
Whirlpool leverages social media content on a website,
EveryDayCare. It is based on 44 thousand pieces of
UGC, and aimed at positioning the brand through
emotions rather than product benefits. The company
gained 6.6% sales lift (compared to 4.9% for the
category) and emotional engagement improved
significantly.

23. Case Studies: “Social Core”
Social networks are becoming more mission-specific, catering to users’ behaviors on the
one hand and to unmet needs on the other hand.
Facebook launched a job search tool and a
recommendation tool. After writing a post
asking for a recommendation, Facebook
changes it to a ‘recommendation’. As soon
as other users react to the post, Facebook
recognizes the business and displays it on a
map, as well as its rank and reviews.
Emerj has developed an on-demand
mentorship app designed to connect women
with relevant mentors in their organizations
in order to increase their employees’
engagement, satisfaction, and retention
levels.

24. Summary and Recommendations
• Social Media has changed our everyday lives. We turn to social platforms for information,
content sharing, buying/ selling of products, and brand communication.
• We expect social commerce to rise in the next 2 years, as a result of consumers’ current
purchase behaviors and the need for monetizing the user base.
• When marketing on social media, make sure to follow the next principles:
– Relevancy and consumer focus – aimed at providing value, rather than being perceived as
a nuisance
– Building platform-appropriate tools and communications, according to the destination’s
consumer motivations
– Understanding the value of social media pre-purchase research in order to offer
information and service integration

25. Thank You!
The research was conducted by: Hamutal Schieber
Schieber Research | Market Research & Competitive Intelligence
www.researchci.com | hamutal@researchci.com
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