Welcome to Trusted Shops’ monthly recap where we look at e-commerce trends and news for the UK and Europe. In this month’s blog, we’ll be looking at some surveys about social media as well as how local businesses are losing trust (don’t worry- there’s an easy fix!) and international fear of the GDPR.
Younger audiences trending away from Facebook
According to a report by eMarketer, the popularity of Facebook is declining in younger demographics. In the 18-24 age bracket, currently 83% of social network users are on Facebook regularly, but this share is expected to drop to 81.5% in 2021. Shockingly, the 2018 estimates are down by more than five percentage points.
Perhaps the bigger news is for the younger demographic. For 12-17 year-olds, about 71% of social media users are regular Facebook users, which is an 8% downgrade.
It seems other social networks are gaining more popularity and stealing some of the usage shares away from Facebook. Mr. Zuckerberg can count his blessings that Instagram, which is also owned by Facebook, is also still quite popular. However, Snapchat (Instagram’s biggest rival) has seen usage numbers go up. It’s predicted that close to 43% of UK social network users will be signing into Snapchat in 2018, which is about double the penetration it had only three years ago.
It should be interesting to see how popular Facebook remains in the coming months and years. Have people had enough of the scandals coming from Facebook? Will the #deletefacebook movement catch on? Will tomorrow’s shoppers reject Facebook? Or will Zuckerberg figure out a way to appease users and marketers alike?
More and more advertisers using influencer marketing
Speaking of social media, the ANA (Association of National Advertisers) conducted a survey amongst advertisers to see how popular influencer marketing is. The survey was conducted in the US, where a lot of digital trends begin, and revealed that 75% of advertsier currently use influencer marketing techniques and about 43% plan to increase their spending on it in the next 12 months.
Of those who weren’t currently using it, 27% responded that they planned to do so in the next 12 months as well.
Even with Facebook usage down amongst younger users, the survey found that the social media giant was the overall top social media channel for influencer marketing at 86%. Instagram, which is also owned by Facebook, came in with 84%. However, Instagram was ranked the most important channel (36%), followed by Facebook (20%).
Mid-level influencers (those accounts with 25,001 - 100,000 followers) were the most popular to use for advertisers (66%). Next came micro-influencers (50 - 25,000 followers) with 59% of advertisers macro-influencers (100,000+ followers) coming in at 44%.
Also, interesting is the form of compensation. Almost two-thirds of brands using this strategy compensated their influencers monetarily. Where about 35% of companies simply provided free products in exchange for influencer services.
Smaller businesses should keep this in mind if they want to go with the influencer marketing strategy. Even with small marketing budgets, if you can convince an influencer in your niche to promote your product in exchange for samples of the product, it could have a great effect on your traffic and conversions. It might very well be worth looking into this marketing option.
Companies around the globe are worried about GDPR
If you read our blog regularly, you know we’ve addressed the upcoming GDPR quite a bit. For good reason, too! According to a NetApp survey of over 1,100 C-level executives, CIOs and IT managers, 44% of companies are worried about the potential effects of the GDPR on their business.
Although all the regulations and actions needed to be taken may remain a bit blurry, one thing is very clear: the penalties for non-compliance: fines of up to €20 million or 4% of global annual turnover. That is enough to put many businesses out of existence.
Overall, the biggest concern for companies was the reputational damage that would come along with being exposed as non-compliant (with UK companies fearing this the most). “Revenue loss” came in at second place and “mistrust from existing customers” rounding out the top 3.
Click on image to see in detail (source: NetApp)
If you’ve still got questions about GDPR compliancy, check out our free whitepaper on the FAQs of the GDPR.
Online errors leading to lack of trust for local businesses
When we see anything on “trust”, you can bet we’re reading up on it.
Bright Local revealed their findings on trust in the context of local businesses. Surprisingly, 71% of respondents have had a negative experience due to incorrect business information online - with 22% of them going to wrong place because of those mistakes.
These mistakes might include wrong business address, wrong telephone numbers, wrong opening hours, and inconsistent information across different directories.
Here is the part where business owners should really pay attention: 80% of consumers lose trust in local businesses if they see incorrect or inconsistent contact details or business names online and 68% would stop using that local business.
Lesson: if you’re a small business owner who has their information listed in certain directories (and their own website), make sure this information is up to date!