5 Key Insights from the 2020 Facebook Marketing Report
Each year, Facebook releases marketing insights that enable marketers to understand consumer behaviours during the holiday period and all-year round. As this year has been one of the most disruptive years for the global economy, it is essential for marketers to understand the online buying behaviour and help businesses capitalize on the usual influx of purchases during the holiday period. Covid-19 has brought changes to all aspects of life, forcing consumers to create new habits that form new trends for 2020 and beyond. To help marketing agencies on a global scale, Facebook IQ has released the 2020 Facebook Holiday Package Trend Report and enables marketers to understand the shift in consumer behaviour around the holiday period, as well as due to Covid-19, and act accordingly.
In this blog post we will recap the most significant findings, as well as what we, Human Digital would recommend based on the opportunities and threats carried by these trends.
Insight 1: Gen X and Boomers dominate global mobile and ecommerce growth
We’ve all experienced the effects of Covid-19 on both our personal and professional lives, and have made people rely on technology more than ever. The digital economy has seen an incredible influx in usage, especially on e-commerce platforms. The Coronavirus research of April 2020 resulted in 1 out of 3 shoppers globally saying they spend significantly less time shopping in-store, and are shifting to online shopping solutions. This rapid and powerful shift to ecommerce platforms has proven to be a challenge for business as 82% of global mobile shoppers surveyed experienced issues whilst shopping online.
Facebook IQ Recommends businesses to reduce friction across the digital and physical path to purchase, as it may cause shoppers to abandon their purchase. Furthermore, businesses need to improve and streamline their communication channels on messenger apps and through live-chat as this will be the main channel of communication for customers.
Human Digital recommends businesses to take the time and map out the customer journey, both on-and-offline, to see if there are any bottlenecks or issues that can be resolved. Experiencing the online purchasing process through the perspective of your customer will help you understand what they go through when shopping in your online store.
Insight 2: People may prioritise Mega Sales in the face of economic challenges
The global pandemic has affected both businesses and consumers globally, causing consumers to feel insecure about their future financial stability and affect their spending patterns. In Australia, 37% of the surveyed people expect a big impact on their personal finances, while in New Zealand the percentage is 34%. According to FacebookIQ, the solution to capture the growing pool of price-sensitive shoppers is called Mega-Sales. Mega Sales day shoppers tend to be younger and are very comfortable going from discovery to purchase on mobile devices, requiring your business to have an integrated framework to support these purchases on digital platforms.
Facebook IQ Recommends to tap into automation and machine learning to find the right audience, at the right time and the best price, and then boost liquidity. In addition businesses need to consider how you can use technology to bring the uniqueness of your brand, store experience and even your product experts into shoppers’ hands.
Human Digital recommends for businesses to create a marketing campaign across their digital channels that resonates with both their existing customer base, as well as connects with a new audience of potential customers. Well-thought out content strategies and well targeted, creative advertisements that are both dynamic and engaging are two elements that can significantly affect the successfulness of a Mega Sale event.
Insight 3: Self-gifting and seasonal shopping can be positive outlets in difficult times
People have resorted into self-gifting in order to cope with difficult times and give themselves positive rewards. This offers a great opportunity for businesses to focus on sales strategies based on what shoppers can afford, and how products can be advertised to have a positive impact on the lives of the customers after purchase.
Facebook IQ Recommends to create a customer journey where shoppers are connected with interactive content based on what their interests and previous searches are. Dynamic ads are a great way to reach people who have expressed previous interest in your products, or products similar to yours. In addition, using AR technology to create a “try before you buy” experience that enhances the effectiveness of your sales funnel.
Human Digital recommends to create a customer journey that is customised to the customers online behaviour and interests, to create a feeling of exclusivity for the customer whilst looking for products or services. Newsletters featuring products that have been selected for the individual customers is also a great way to create value out of the opportunity of self-gifting.
Insight 4: Disruption drives receptivity to new products and services
The effects of Covid-19 have changed the way most people live their lives, but also created an opportunity for people to try new products and services that offer better price, quality or convenience. In China, where the COVID-19 outbreak first took place, 84% of survey respondents tried at least one service for the first time during that period. This increase of interest takes place across all different markets and therefore require businesses to pay close attention to their communication with the different audiences.
Facebook IQ Recommends to take the opportunity to spark new connections and help people identify with products meeting their preference. They advise to use immersive, engaging, and captivating content and advertisements. Stories are a great way to advertise and reach customers that are engaged and active on various social media platforms. The second recommendation is to reach new audiences with branded content by collaborating with creators. This helps businesses to tap into existing relationships and promote their products through a different type of channel.
Human Digital recommends to connect with local creators in your area and collaborate to connect with a new audience. When looking at creators, it is very important to make sure that you align your brand values and voice with the creator’s. If this is done correctly, smaller creators can lead to a much higher effectiveness and return on investment!
Insight 5: People look for affordability, brand authenticity and alignment with their personal values
Consumers will continue to care about price points, discounts, and deals in order to save money in a more insecure period. But as a result of Covid-19, people care about businesses more than ever before, especially ones that create a personal relationship with their customers. Social responsibility and brand authenticity are more influential than ever. Social media content from businesses needs to be authentic, informative, and trustworthy. The business actions both on-and-offline are under the customers magnifying glass as they are expected to take actions beyond marketing to positively impact their operation surroundings and the lives of their customers. How a brand responds to the pandemic will have a huge impact on their likelihood of acquiring and retaining customers.
Facebook IQ Recommends to create a brand marketing strategy that shares your business values with the world and showcase how your brand supports the community through the pandemic. Authentic communication and charitable initiatives such as voluntary donations linked to a product purchase are great ways to support the community and promote your brand. Brand partnerships are another way of supporting the local community whilst marketing one-or-more services of your business.
Human Digital recommends to really focus on impactful collaborations and create a free introductory service such as our own digital assessment. By offering a free service that consults and benefits other businesses, you create an image that is built on authenticity and a genuine care for the people around you. It also gives potential customers a risk-free opportunity to understand if you can meet their needs.