Teens losing interest in Facebook
Retail marketers take heed: Facebook's appeal is fading among teens even as two other platforms continue to pick up momentum.
Facebook’s community of monthly users in the U.S. will grow 2.4% this year to 172.9 million people, thanks to increased adoption by older internet users, according to a report by eMarketer. But the social network’s monthly user base among the marketer-coveted 12 to 17 age group will fall 3.4% over 2016 to 14.5 million people, marking the second consecutive year of expected usage declines by teens and up from the 1.2% slip recorded in 2016.
Monthly Facebook usage among those under 12 and ages 18 to 24 will grow more slowly than previously forecast, too, the report said.
“We see teens and tweens migrating to Snapchat and Instagram," said eMarketer senior forecasting analyst Oscar Orozco. "Both platforms have found success with this demographic since they are more aligned with how they communicate — that is, using visual content."
Indeed, eMarketer’s latest forecast has Snapchat overtaking both Instagram and Facebook in terms of total users ages 12 to 17 and 18 to 24 for the first time in 2017. As a result, Snapchat’s share of U.S. social network users will grow to 40.8%.
Those teens and tweens who still remain on Facebook seem to be less engaged, Orozco said, logging in less frequently and spending less time on the platform.
“At the same time, we now have ‘Facebook-nevers’ — children aging into the tween demographic who appear to be overlooking Facebook altogether, yet still engaging with Facebook-owned Instagram," he added.
eMarketer has increased its projections for Snapchat usage. The social network’s U.S. user base is now expected to grow 25.8% to 79.2 million monthly, with the biggest upward revision made to the 18-to-24 group where usage will escalate 19.2% this year.
Similarly, monthly Instagram usage in the U.S. will grow 23.8% in 2017, a rate higher than previously forecast, to 85.5 million. Within that figure, Instagram will expand its user base among those under 12 years old by 19.0% and those ages 12 to 17 by 8.8%.
“Facebook is fortunate that it owns Instagram, which remains a strong platform for teens,” said eMarketer principal analyst Debra Aho Williamson. “Although usage of the main Facebook app is declining among teens, marketers will still be able to reach them on Instagram.”
Visa and Uber take rewards program nationwide
Uber riders nationwide can now earn credits for shopping and dining under a rewards program with Visa.
The program, Visa Local Offers with Uber, launched last year in the San Francisco and Los Angeles markets. It has been relaunched to be made available to Uber riders across the country. The program is open to Uber riders with an eligible U.S.-issued Visa card on file in the Uber app.
Once enrolled in the program, riders can receive Uber credits that can be applied towards future Uber rides. Riders can use the same Visa card on file with Uber to shop or dine at over 5,000 featured merchants. After qualifying purchases, credits automatically add up in the Uber app, and riders can then choose to redeem their Uber credits on their next ride or save them for later. (In a change from the test last year, the rewards are now automatic based on the displayed offer.)
“As we continue to move towards a cashless culture, programs like Visa Local Offers with Uber are representative of new ways that merchants will be able to unlock business value while also rewarding consumers in simple and seamless ways for everyday purchases,” said Terry Angelos, VP, Visa Commerce Solutions team, Visa.
According to VisaNet data from July 2016 to June 2017, Visa found a strong connection between Uber riders and local businesses.
"More than a quarter of Visa cardholders who used Uber, made a purchase with their Visa card at a physical store within 30 minutes of completing an Uber ride, making this program a great way for our merchant partners to engage new and existing customers while also offering consumers secure, simple and consistent purchasing experiences," Angelos said.
Survey: Millennials don’t mind if retailers track their purchases
Millennials are on board with personalized marketing.
While security may be a concern with older shoppers, 70% of millennials are comfortable with retailers tracking their purchasing and browsing behaviors if it means they’ll receive more relevant communications, according to a report from SmarterHQ, a multichannel behavioral marketing platform.
The report noted that many retailers have shifted their omnichannel marketing efforts to focus heavily on the online shopper, especially for the younger, more tech-savvy millennials. But one of its findings is that 50% of millennials actually prefer shopping in-store – meaning some retailers may be missing the mark in engaging this 80 million strong demographic.
“While we’re seeing much more mobile traffic than we ever have in previous years, especially with the younger buyer, our survey found that brick-and-mortar is alive and well with millennials, and the need for a strong, well-executed and cohesive omnichannel presence beyond online is key when capturing millennial spend,” said Michael Osborne, CEO of SmarterHQ.
Key survey findings retailers and marketers should keep in mind when targeting millennials include:
Don’t bombard millennials with marketing tactics: 74% of millennials said they are frustrated with too many marketing communications, and the majority prefer one to three marketing emails per month. Quality not quantity – with relevant content – will make those emails truly count.
Brand loyalty is limited: Only 6.5% of millennials respondents considered themselves brand loyal, however, those who prefer personalized communications have a 28% higher brand loyalty than those who do not.
Personalized emails trump batch and blast: 70% of millennials are frustrated by brands sending irrelevant emails, and prefer to receive personalized emails offering certain info like sale notifications for previously carted items, sale notifications for previously browsed items or categories, and recommended products based on their interests.