Instagram is the surging platform for businesses and why more brands are getting committed. Are you?


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Picture speaks a thousand words!

This explains why the Instagram is so popular nowadays. Within two years after its first launch at October 2010, it transforms from a mere app for people to post pictures which did not have a lot of marketing value to an effective platform largely tapped by business marketers as a channel to reach out to new audiences.

Just like Facebook and Twitter, Instagram allows us to immediately get the latest news happening around us. The advantage of Instagram over other typical social media platforms could be that it appears to be more classic and stylish – with all the filters and add ons for our pictures. It is an arising social platform for people from all around the world to be connected together. Furthermore, certain times when words are hard to explain for ourselves, pictures can actually do a better job! What’s more – pictures are able to attract more attention as compared to words.

These are the reasons why more and more businesses are leveraging on Instagram nowadays. As mentioned by Social Media Examiner, there are 5 ways a people can use the Instagram to promote their businesses:

  1. Use Instagram Profiles to Reach a Wider Audience
  2. Create Engagements with Contests
  3. Reward Followers with Promo Codes
  4. Feature your Customers
  5. Get more Interest in Your Events

With millions of users betting their money and time on visual social networks, marketers have extended their arms in grabbing all they can. Though engagement is heavily concentrated among certain brands, all the companies are soon catching up!

The photo-sharing smartphone app Instagram may have created a bit of controversy last year when it made changes to its privacy policy, but that doesn’t appear to have slowed brand and consumer uptake of the service. According to findings from social media measurement and analytics company Simply Measured, adoption by the Top 100 brands (based on Interbrand’s rankings) rose five percentage points (54% to 59%) from November 2012 to February 2013.

Although brand presence on Facebook-owned Instagram is light compared to their activity on social networks like Facebook, Twitter and even Google+, it is growing. The growth may be partially due to Instagram’s recent introduction of web profiles and feeds, both of which provide brands with a chance to better present their content and engage with followers.

According to Simply Measured, the top brands on Instagram include MTV, Starbucks Coffee, Nike, Burberry, Tiffany & Co., Gucci, Audi, GE, Ralph Lauren and Adidas – all of which have more than 100,000 Instagram followers.

Interestingly, Simply Measured made note that the top-followed brands on Instagram accounted for the vast majority of brand engagement on the platform. Currently, the top 8 brands are responsible for 80% of engagement. But that is down from November, when the top 8 brands accounted for 92% of engagement, suggesting that other brands are getting more involved and adept on the network.

Although the top Instagram brands have varying strategies and objectives on the platform, they share some common metrics and sharing habits. According to Simply Measured, 41% of the top 100 brands share more than 1 photo on Instagram per week.

MTV, which Simply Measured ranked as the No. 1 followed Instagram brand account, is less interested in using photo filters on Instagram. Rather, the company posts photos of musicians and celebrities, often behind the scenes of popular MTV programs. The photos receive a high level of engagement, especially when fans recognize famous faces in the photos.

Starbucks, the No. 2 brand on Instagram, takes an artsier approach than MTV, often posting filtered shots of coffee mugs and hand-crafted beverages. Nike, which saw engagement grow 6% since November, uses the platform to showcase its products in motion. Its photos of newly released sneakers appeal to a niche community of “sneakerheads” and tennis shoe collectors.

It makes sense that MTV, Starbucks and Nikeall of which have a stake in reaching younger consumerswould make Instagram a social media priority. According to the Pew Internet and American Life Project, Instagram may resonate more with millennial consumers than other age groups. Pew’s data indicated that 28% of US internet users between the ages of 18 and 29 used Instagram in December 2012, compared with 14% of those between 30 to 49. Very few Instagram users were older than 50.

Although Instagram is currently an immature social network compared to well-established platforms like Facebook and Twitter, the mobile social network may provide a good opportunity for marketers interested in visual content marketing. It gives brands a chance to be creative and connect with younger fans at a relatively low cost.

(Article by Lizhen, Ayushi, eMarketer)

Mobiles to match globe’s population


The number of mobile telephones worldwide is set to catch up to the globe’s population next year, the United Nations’ telecommunications agency said on Thursday.

The International Telecommunication Union (ITU) said mobile subscriber numbers looked set to top seven billion in 2014.

“More than half of all mobile subscriptions are now in Asia, which remains the powerhouse of market growth,” the ITU said.

By the end of 2013, overall mobile penetration rates will have reached 96% globally, 128% in the developed world, and 89 percent in developing countries, it added.

“Near-ubiquitous mobile penetration makes mobile cellular the ideal platform for service delivery in developing countries,” said Brahima Sanou, director of the ITU’s telecommunication development bureau.

The ITU also forecast that 2.7 billion people, or 39% of the world’s population, would be using the internet by the end of this year.

Europe will remain the world’s most connected region, with 75% internet penetration, far outpacing the Asia-Pacific region at 32%, and Africa with 16%, it said.

“Household internet penetration – often considered the most important measure of internet access – continues to rise. By end 2013, ITU estimates that 41% of the world’s households will be connected to the internet,” the agency noted.

Over the past four years, household access has grown fastest in Africa, with an annual growth rate of 27%, it said.

10% connected

But despite a positive general trend, 90% of the 1.1 billion households around the world that are still unconnected are in the developing world.

It also highlighted disparities in the field of broadband internet.

It said the star performers in terms of access speeds were South Korea, Hong Kong and Japan, alongside some surprises in Europe, including Bulgaria, Iceland and Portugal.

The cost of fixed-broadband services has dropped precipitously over the past five years, declining by 82% if measured as a share of gross national income per capita, it said.

In developing countries, however, such services remain relatively expensive, with residential fixed-broadband accounting for just over 30% of average monthly gross national income per capita.

Broadband is most affordable in Europe, where a basic subscription costs on average less than 2% of gross national income per capita, the ITU said.

(article News24, AFP)

Eurobarometro: Internet unico medium italiano in ascesa


Gli websurfer quotidiani passano dal 37% del 2010 al 45% del 2012. Ma la tv resta la piattaforma più amata dall’84% degli abitanti. In calo stampa e radio.

Internet si conferma il secondo mezzo di comunicazione più utilizzato dagli italiani, superando la radio, ma la televisione resta il medium più seguito. È quanto emerge dal capitolo su “Gli italiani e i media” inserito nel rapporto sull’Italia  dell’Eurobarometro, il sondaggio più importante condotto a livello europeo sulle opinioni dei cittadini Ue.

La rete segna una regolare crescita e anzi è l’unico mezzo di comunicazione che guadagna utenti in Italia: dal 37% di utenti quotidiani nel 2010 è passata al 45% del 2012. Anche i social network, come Facebook o Twitter, aumentano costantemente la loro popolarità tra gli italiani. Un intervistato su quattro dice di collegarsi ad una rete sociale circa una volta al giorno, mentre nel 2010 la percentuale era del 15%.

Oltre la metà del campione (51%) ritiene che le reti sociali siano un modo innovativo per tenersi aggiornati sulla vita politica. Il 24% degli intervistati si mostra invece scettico.

La stessa maggioranza (51%) ritiene  i social media un modo per partecipare attivamente alla vita pubblica, e non solamente per informarsi. Ancora una volta, il 24% del campione non crede in questa funzione dei social media.

Seppure considerati quindi dalla maggioranza assoluta degli intervistati uno strumento moderno per aggiornarsi e per discutere di questioni politiche, tuttavia i social non hanno ancora la piena fiducia della popolazione. Soltanto il 34% del campione ritiene che ci si possa fidare di Twitter o Facebook su temi politici. La stessa percentuale è invece convinta che non siano affidabili. Il restante 32% non sa rispondere.

Ma la tv resta la reginetta incontrastata dei media. L’84% dei connazionali la guarda con cadenza giornaliera attraverso i consueti apparecchi tv, ed un altro 4% segue i programmi televisivi quotidianamente su internet.

In calo stampa e radio. I giornali sono usati quotidianamente soltanto dal 24% degli italiani, contro il 29% rilevato nel 2010, mentre la radio è ascoltata quotidianamente dal 33% del campione, una quota nettamente ridimensionata rispetto al 44% del 2010. Per entrambi i mezzi di comunicazione i dati italiani sono ampiamente inferiori alla media Ue, dove invece il 37% legge i giornali quasi ogni giorno e il 53% ascolta la radio.

Week’s review: Reasons to be fearful


Mixed economic messages, threats from North Korea, and a wary outlook on Europe’s telco sector means it could be time to head for the hills.

At times this week it has been impossible to know which way is up; right from left; Pepsi from Coca-Cola, and so on.

After years of economic doom and gloom, the Dow Jones Industrial Average twice hit all-time highs this week, while on this side of the Atlantic, the European Central Bank revised down its Eurozone growth forecasts for 2013 and held interest rates at 0.75%.

One minute North Korean dictator Kim Jong-un was embracing retired basketball nutter Dennis Rodman and hanging out with the Harlem Globetrotters, the next he was tearing up the armistice with his southern neighbour and threatening the U.S. with pre-emptive nuclear strikes.

Spring fleetingly arrived in the U.K., albeit for just one day, as temperatures in some areas of the country reached a balmy 17 degrees Celsius. However, a day later forecasters were warning us to prepare for the return of snow next week.

And as for telecoms, analysts at Berenberg Bank released a report on Wednesday that contained six reasons to be optimistic about the European telecoms sector… but seven reasons for pessimism.

First, the good news.

Berenberg said increasing talk of M&A – think Verizon buying Vodafone out of their U.S. mobile joint venture, and the latter linked with a move for Kabel Deutschland – is positive because it could open up new investment opportunities, improve scale and ease competition. Of course, it is just talk at the moment, and there are no discernible signs that regulatory concerns about either in-market or regional consolidation will go away any time soon.

Meanwhile, “increased fibre take-up in many markets is driving improved ARPU trends,” claimed Berenberg, while increases in line rental fees in the U.K. fixed market may provide “more reason for optimism”, if they are replicated in other countries.

It also pointed to the EU’s softening stance on regulated wholesale copper prices; no fresh regulated cuts in mobile termination rates or roaming charges in the offing; and the potential for further cost-cutting as reasons investors should be cautiously optimistic.

However, some of Berenberg’s six reasons to be cheerful rely on things that might happen, rather than things that have actually happened, and they contrast starkly with its seven reasons that may cause one to run to the hills, craft a tinfoil hat and hoard canned goods.

“Capex has generally been on the increase in the sector as incumbents commit to more aggressive roll-out plans associated with fibre, and also accelerated roll-out associated with 4G,” said Berenberg. It said 2013 capex estimates have increased by 4% on average.

That’s before we get to the myriad threats and structural problems afflicting Europe’s telco sector.

European mobile players are still seeing flat or falling service revenue growth, noted Berenberg, thanks to the combination of the aforementioned regulation of MTRs and roaming, and intense competitive pressure.

Indeed, you only have to look at some of the recent numbers from the sector’s big names to know that: Telefonica saw revenue at its European business fall 6.7% in Q4; during the same three-month period, Deutsche Telekom saw group revenue contract 1.4%; and on Thursday Telecom Italia announced full-year revenue fell 1.5% in 2012 compared to the year before.

Berenberg also warned quad-play services could put the squeeze on pure-play mobile operators, increasing downward price pressure, with “73% of consumers citing cost savings as their primary motivation to bundle, looking for an average cost saving of 20%.”

While we’re on the subject, “while pricing for mobile operators has been deflationary, the cost base has been inflationary,” Berenberg said, citing increasing smartphone subsidy costs and rising commission fees as a growing proportion of new customers are added via third-party retail partners.

The bank also raised concerns about ongoing free cash flow leakage driven by restructuring, pension top-ups, and spectrum costs among others. That, combined with decisions by some telcos to go on the hunt for more equity financing, KPN being a recent example, is also making credit agencies twitchy too, it warned.

If all that wasn’t terrifying enough, there is still the threat of some pesky new entrant coming along and stealing a chunk of your revenue.

Iliad is the most recent high-profile example, its Free Mobile unit capturing an 8% share of the French mobile market within 12-months of launching and forcing the country’s incumbents to slash prices.

“For France Telecom, for example, contract ARPU declines are running close to 10%, while Q4 voice ARPU declined by 16%,” said Berenberg.

In summary, “we are retaining a cautious stance on the sector,” it said, which I would argue is a somewhat mild way of putting it…

Moving on, and reports this week revealed that China is expected to issue ‘4G’ licences this year, although China Unicom Chairman Chang Xiaobing said an exact date has yet to be announced, and so itdoes not expect to spend much on its 4G infrastructure in 2013. This is a contrasting approach to rival China Mobile, which aims to deploy 200,000 TD-LTE base stations by the end of the year.

Another country that looks set to get 4G soon is Iraq, after it emerged that Alcatel-Lucent has been contracted by local player Regional Telecom to supply it with equipment for the country’s first LTE network.

Elsewhere, Dutch cable operator Ziggo announced that Deutsche Telekom’s outgoing chief executive, Rene Obermann, will become its new CEO from 1 January 2014; O2 Health’s U.K. arm brought its Help at Hand mobile monitoring service to high street retailers; BT announced it will reuse dormant fibre cables to bring high-speed broadband to the remote Isles of Scilly; Millicom said it aims to approximately double annual group revenue to $9 billion over the next five years; Juniper Research predicted operator billing revenues will reach $13 billion worldwide by 2017; and IDC expects globalsmartphone shipments will outstrip feature phone shipments this year.

Finally, Deutsche Telekom announced a partnership with crowd-sourced WiFi provider Fon; the U.S. Justice Department raised no objections to T-Mobile’s proposed merger with MetroPCS; India said it will go ahead with its plan to allow holders of BWA spectrum to offer basic mobile services; and the EU slapped Microsoft with a €561 million fine for not giving Windows users the option to use rival Web browsers.

(article by N. Wood – Total Telecom)

1993 – First report on the Internet (CBC prime time news)

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